Does this fly on iTulip Air?

[don]

A friend of mine, exhausted from trying to game the disaster, is going heavily into treasuries, with the all-important caveat of a quick pullout at his discretion.

His pitch is Treasury Direct will both sell you a treasury for a nominal handling fee and will also sell your treasury, price based on a 3-auction average. Same nominal fee (around $40). Time you get your dough- 3 to 4 days.

Could this 'safe harbor' be one of iTulip Airlines destinations in turbulent weather :confused:

[FRED]

Re: Does this fly on iTulip Air?

A friend of mine, exhausted from trying to game the disaster, is going heavily into treasuries, with the all-important caveat of a quick pullout at his discretion.

His pitch is Treasury Direct will both sell you a treasury for a nominal handling fee and will also sell your treasury, price based on a 3-auction average. Same nominal fee (around $40). Time you get your dough- 3 to 4 days.

Could this 'safe harbor' be one of iTulip Airlines destinations in turbulent weather :confused:

A convenient way for investors to participate is to set up a Treasury Direct account, buy 91 day T-bills and have Treasury Direct services re-invest them -- all of which can be done online. One can request that T-bills be re-invested up to ten times automatically. The advantage of this over inflation indexed treasuries is that one isn't counting on the U.S. Labor Department to set the actual level of inflation that the Treasury is using to index interest rates on the notes. If you re-invest 91 day T-bills, the market sets rates for you, not the government. Still, the biggest bargain in inflation-indexed government debt these days is the I Series Savings Bond. These are currently paying a risk-free rate of 7.49%. This compares well to the not at all risk-free -17% annualized rate of return on the DOW over the past 12 months. The bad news is that individuals are limited to only $30,000 of purchases a year, but that's only a problem if you're in the top 10% income bracket. - Questioning Fashionable Financial Advice, Gold - September 2001

[don]

Re: Does this fly on iTulip Air?

A convenient way for investors to participate is to set up a Treasury Direct account, buy 91 day T-bills and have Treasury Direct services re-invest them -- all of which can be done online. One can request that T-bills be re-invested up to ten times automatically. The advantage of this over inflation indexed treasuries is that one isn't counting on the U.S. Labor Department to set the actual level of inflation that the Treasury is using to index interest rates on the notes. If you re-invest 91 day T-bills, the market sets rates for you, not the government. Still, the biggest bargain in inflation-indexed government debt these days is the I Series Savings Bond. These are currently paying a risk-free rate of 7.49%. This compares well to the not at all risk-free -17% annualized rate of return on the DOW over the past 12 months. The bad news is that individuals are limited to only $30,000 of purchases a year, but that's only a problem if you're in the top 10% income bracket. - Questioning Fashionable Financial Advice, Gold - September 2001

Thanks Fred

[rtchoke]

Re: Does this fly on iTulip Air?

A convenient way for investors to participate is to set up a Treasury Direct account, buy 91 day T-bills and have Treasury Direct services re-invest them -- all of which can be done online. One can request that T-bills be re-invested up to ten times automatically. The advantage of this over inflation indexed treasuries is that one isn't counting on the U.S. Labor Department to set the actual level of inflation that the Treasury is using to index interest rates on the notes. If you re-invest 91 day T-bills, the market sets rates for you, not the government. Still, the biggest bargain in inflation-indexed government debt these days is the I Series Savings Bond. These are currently paying a risk-free rate of 7.49%. This compares well to the not at all risk-free -17% annualized rate of return on the DOW over the past 12 months. The bad news is that individuals are limited to only $30,000 of purchases a year, but that's only a problem if you're in the top 10% income bracket. - Questioning Fashionable Financial Advice, Gold - September 2001

From http://www.treasurydirect.gov/indiv/...res_ibonds.htm

Buying I Bonds through TreasuryDirect:

* Sold at face value; you pay $50 for a $50 bond.
* Purchased in amounts of $25 or more, to the penny.
* $5,000 maximum purchase in one calendar year.
* Issued electronically to your designated account.

Buying Paper I Bonds:

* Sold at face value; i.e., you pay $50 for a $50 bond.
* Purchased in denominations of $50, $75, $100, $200, $500, $1,000, and $5,000.
* $5,000 maximum purchase in one calendar year.
* Issued as paper bond certificates.

The annual limitation on purchases of United States Savings Bonds has been set at $5,000 per Social Security Number, effective January 1, 2008. See the press release.

Current Rate: 5.64% through April 30, 2009

[don]

Re: Does this fly on iTulip Air?

In the recent past, how quickly have 5-10 year treasuries significantly changed their rates ?

In other words, watched closely, has there been time to get out before principal havoc is wreaked :eek:

[Starving Steve]

Re: Does this fly on iTulip Air?

The beauty of I-bonds is that the principle is steady. Then you get a tiny bit of interest. Then you get some inflation protection added to that. And all this gets added together tax-deferred while you sleep.

I love investments that work while I sleep. ;)

[raja]

Re: Does this fly on iTulip Air?

A convenient way for investors to participate is to set up a Treasury Direct account, buy 91 day T-bills and have Treasury Direct services re-invest them -- all of which can be done online. One can request that T-bills be re-invested up to ten times automatically. The advantage of this over inflation indexed treasuries is that one isn't counting on the U.S. Labor Department to set the actual level of inflation that the Treasury is using to index interest rates on the notes. If you re-invest 91 day T-bills, the market sets rates for you, not the government. Still, the biggest bargain in inflation-indexed government debt these days is the I Series Savings Bond. These are currently paying a risk-free rate of 7.49%. This compares well to the not at all risk-free -17% annualized rate of return on the DOW over the past 12 months. The bad news is that individuals are limited to only $30,000 of purchases a year, but that's only a problem if you're in the top 10% income bracket. - Questioning Fashionable Financial Advice, Gold - September 2001

EJ said, "In a period when currency values and interest rates may change quickly, the short end of the Treasury yield curve is safest." So it's not just the CPI manipulation, but the threat of sudden currency devaluation or interest rate changes, right?