I know liquidity is high, but if you need the money for something how big (if any) of a loss do you end up taking if you need to sell. Do you just buy every month and have to remember to roll it over?
You can buy lots of different terms up to a year and bc it's so short dated the price of the bonds isn't too sensitive to interest rates. It's a zero coupon bond thats discount to face value shrinks as time passes so if you buy a t bill and sell a month later you usually just capture the appreciation in the meantime (so you still accrue the interest effectively)
Is it actually worth it to buy T-Bills over say just like sitting on a 4.8% savings account.
T bills are state tax exempt so depends on your situation. T bills are 5.5% rn
I know liquidity is high, but if you need the money for something how big (if any) of a loss do you end up taking if you need to sell. Do you just buy every month and have to remember to roll it over?
You can buy lots of different terms up to a year and bc it's so short dated the price of the bonds isn't too sensitive to interest rates. It's a zero coupon bond thats discount to face value shrinks as time passes so if you buy a t bill and sell a month later you usually just capture the appreciation in the meantime (so you still accrue the interest effectively)