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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Perspective who wrote (84176)8/9/2007 11:05:00 AM
From: GraceZRead Replies (1) | Respond to of 306849
 
At Scottrade they'll sell you Tbills and Tbonds in 10k increments. It takes a day to settle. I don't know what they charge for this since I tend to hold bond funds in brokerage accounts rather than bonds.



To: Perspective who wrote (84176)8/9/2007 11:08:36 AM
From: TommasoRead Replies (1) | Respond to of 306849
 
>>>Problem is that unless it's actually the *Tbills* themselves, the state of Oregon takes a big chunk of the interest. Drops a 5% yield to a 4.5% yield real fast.<<<

You can use brokers funds that are entirely US gov interest, as I am sure you know.

Interest on federal obligations (bonds, bills,savings bonds) is exempt from state and local taxes, but taxable as federal income.

For such a simple issue, there is a lot of confusion. For example, the AARP web site tells its readers that federal interest is exempt from federal taxes.



To: Perspective who wrote (84176)8/9/2007 11:19:09 AM
From: lzcRead Replies (2) | Respond to of 306849
 
Why does Treasury Direct tie you up for 45 days? A 28-day bill would tie you up for 28 days. The money is withdrawn directly from your bank on issue day and deposited back at maturity, if you choose.