Sunday, March 31, 2019

Learning About T-Bills, With Robert Jain

By Jason McDonald


One of the biggest challenges of investing money is that you may not know where to put it. How can you be sure that your funds are being used wisely? This brings us to the topic of T-bills, which are common in the finance industry. You may not be familiar with this term, which is where insight from Robert Jain and other financial minds can prove useful. Here is what you should know about the topic at hand.

For those that don't know what T-bills, also known as treasury bills, entail, they are essentially money that you lend to the government. Consider these debts that the government in question must pay to investors later down the road. According to such names in finance as Bob Jain, T-bills accumulate interest over time. The longer that they remain in effect, the more money that the investor will ultimately see.

There are a few benefits to investing in T-bills, including the fact that they're low-risk. For those that don't know, these are designed with zero default risk, which means that no matter what kind of financial problems that the government may experience, they don't fall onto the shoulders of investors. In other words, there is little to no liability on your end. This is one of the many reasons this type of investment appeals to a wide range of people.

T-bills seem to be relatively cheap compared to other investment options, too. When you think about financial agreements like this, you may think of spending hundreds, if not thousands, of dollars upfront. Comparatively, T-bills are accessible in the sense that they have a $100 minimum. As you can imagine, this makes them more appealing to a wider audience. This low barrier for entry can help entice them to invest their money sooner.

If you're looking to make this investment, you must have a sense of healthy competition in mind. The reason for this is that T-bills must be acquired via bids. To say that these bids become competitive would be an understatement, especially for bills that yield greater interest from year to year. Even though a T-bill can make a considerable financial difference in one's life, it's important that they know how much they can realistically spend.




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