Treasury BillsTreasury Bills or t-bills are considered the safest investment you can make. Even though these are considered very safe it comes with a very low return. Basically a treasury bill is a government insured investment. What you are doing when you buy them is essentially buying debt. But unlike bonds they do not pay out monthly cash flow. They just appreciate by a set amount.The simplest way to explain it is you are buying an IOU. You pay $10,000 now and the government pays you $10,150 in 6 months. And there you have it, instant return. They are considered the safest investments because a government will not go bankrupt. The best part about them is that most governments will not charge you tax on your profits. Although you should always check with a tax advisor first.
|
