Money Markets, CDs and Treasuries

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@MarkR

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I didn’t get out of the bond fund quick enough when the FED started jacking rates and my capital loss was about equal to a year’s worth of interest.

This can’t happen with T-bills. Ever. You buy a T-bill at a discount, and then at maturity, it pays you face value. Every time. For example, today I bought CUSIP 912797MK0, the 26-week T-bill, for 97.5759, and on 2/13/25, it will mature at 100 exactly.

Yes. When I was younger and “10 years worth of living expenses” was 40% of my net worth, I took the time to buy FDIC-insured CDs and Treasury securities.

Now that 10 years worth of expenses is less than 5% of my portfolio, I’ve gotten lazy in my old age and did the easy thing in buying a bond fund.

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