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How do I buy Treasury Bonds through Schwab?

Posted on 2/1/23 at 12:56 pm
Posted by The Top G
Member since Jan 2023
139 posts
Posted on 2/1/23 at 12:56 pm
Looking to harvest some capital losses and the 6 month bond rate over 4% is what I'd like to replace them with since this is money I don't need anytime soon.

I have no idea how buying these works making sure I don't buy something with a month left until maturity or anything like that. Likely only a couple thousand worth if that makes any difference
Posted by MikeyFL
Member since Sep 2010
9898 posts
Posted on 2/1/23 at 1:00 pm to
The easiest method might just be to just buy into a Treasury ETF. SGOV is solid. USFR or TFLO are other options if you want to protect against higher interest rates.
This post was edited on 2/1/23 at 1:05 pm
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
82503 posts
Posted on 2/1/23 at 1:06 pm to
quote:

SGOV is solid.


so he only has 2k to invest. SGOV gives him 1.45%

he is better off gambling and having fun.

he needs to up the money and just put it in a T-bill and get over 4%.
Posted by MikeyFL
Member since Sep 2010
9898 posts
Posted on 2/1/23 at 1:08 pm to
quote:

SGOV gives him 1.45%


Before you laugh, learn to read an ETF overview.

SGOV's 30 day yield is 4.17% and will tick up after today.
Posted by thelawnwranglers
Member since Sep 2007
40529 posts
Posted on 2/1/23 at 1:11 pm to
It's real simple

Under trade tab click bonds

It has different YTM and duration.

Click on what you like and list of bonds sorted by YTM show up

There is min max in increments of $1,000

Select one that is 1 to whatever all the way to the left is a buy button

Then like any market order buy sale at limit or market price
Posted by The Top G
Member since Jan 2023
139 posts
Posted on 2/1/23 at 1:12 pm to
quote:

so he only has 2k to invest. SGOV gives him 1.45%

he is better off gambling and having fun.

he needs to up the money and just put it in a T-bill and get over 4%.


I have more. I was just going to harvest some losses on stuff I need to sell anyway. I'll sacrifice 2-3% of potential returns for the safety of the bonds. I don't have the time to do the research to be a retail investor so I'll take the 4.5ish % and move on.

I'm 29 so about the time I made enough money to open a brokerage, things were going nuts. I had some big winners, but ive got some decent losers as well (20ish percent range from purchase date).

Edit: I have a Citi Accelarate account getting 3.4% too if it's not even worth fooling with the bonds
This post was edited on 2/1/23 at 1:26 pm
Posted by thelawnwranglers
Member since Sep 2007
40529 posts
Posted on 2/1/23 at 1:37 pm to
quote:

Edit: I have a Citi Accelarate account getting 3.4% too if it's not even worth fooling with the bonds



1% on $5k not much but I buy bonds all the time recently and has been super easy

I have not sold any yet just had one mature
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 2/1/23 at 4:02 pm to
Buying T-bills, notes or bonds on Schwab or TD Ameritrade is about as easy as it gets. Once you figure out the basics of the platform navigation, with about three clicks, you’re done.

Another option is Schwab’s money market mutual fund (seeks to maintain a $1.00 share price): Schwab Value Advantage Money Fund® -
Investor Shares4 SWVXX, currently yielding 4.27%.
Posted by CorkRockingham
Member since Jun 2017
502 posts
Posted on 2/1/23 at 4:46 pm to
The 30 day yield is 4.17% but that is 4.17% over an entire year right?

Like a 6 month t bill is at 4.17% but you would only get 2.85% yield correct?

Posted by thelawnwranglers
Member since Sep 2007
40529 posts
Posted on 2/1/23 at 5:02 pm to
quote:

The 30 day yield is 4.17% but that is 4.17% over an entire year right?

Like a 6 month t bill is at 4.17% but you would only get 2.85% yield correct?



Yep expressed as annual so really

4.17% * 1/12
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
82503 posts
Posted on 2/1/23 at 9:42 pm to
quote:

Before you laugh, learn to read an ETF overview.

SGOV's 30 day yield is 4.17% and will tick up after today.





before u cry, learn that snapshot is only of most recent 30 days at an annual rate and is no guarantee of a 12 month return thus why they use the distribution yield number i gave you aka TTM. but hey maybe it will hold up! good luck!
This post was edited on 2/1/23 at 9:46 pm
Posted by MikeyFL
Member since Sep 2010
9898 posts
Posted on 2/2/23 at 1:31 am to
If you want to stick with your claim that SGOV will pay out 1.45% or less this year, I'll be happy to make a ban bet.

The OP simply wanted to earn 4% annualized over the next six months. SGOV, USFR, TFLO, and any number of short-term treasury ETFs and money market funds (FDLXX, SWVXX, VMFXX, TOIXX) will do that. They will also offer greater liquidity if there's a need to pull money out before the six month period is up.

Now if the OP would like to lock in a high rate over the next 3-5 years, we can have a different discussion about buying individual treasury bonds.
This post was edited on 2/2/23 at 3:17 pm
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
82503 posts
Posted on 2/2/23 at 7:38 am to
like i said lil buddy

Posted by MikeyFL
Member since Sep 2010
9898 posts
Posted on 2/2/23 at 3:16 pm to
So you're not going to take my ban bet?

Sounds like you know you're full of it and backed yourself into a corner.
This post was edited on 2/2/23 at 3:17 pm
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