If you’re able to find a broker somewhere that will honor credit cards for purchases of government debt, more power to you. I have yet to find a financial institution that is willing to make purchases that way.

On Sept. 17 yields on 3 month T bills (^IRX) hit .01%.

The risk free rate was competing directly with the underside of your mattress.

Good investment advice! pfft

Investment Return Years Outcome
$10,000 3% 30 $24,568
$10,000 5% 30 $44,677
$10,000 8% 30 $109,357
$10,000 12% 30 $359,496

All the best… cheaplee

To sell a bond before maturity, log in to your account and choose the Sell Direct function. Provide the information the system requests. The request is sent to the Federal Reserve Bank of Chicago which, acting on the Treasury Department’s behalf, will offer your bond to different brokers and sell it to the highest bidder. We then deposit the sale proceeds – less a $45 fee – into the bank account you have designated.”

Thanks for the answer to my question.

I agree with others that this market is on sale, and I am ramping up my own investments a bit!

The full TreasuryDirect FAQ :
http://www.treasurydirect.gov/indiv/help/TDHelp/faq.htm
“In order to open a TreasuryDirect account, you must be a U.S. citizen, resident, or individual who is at least 18 years old with a valid U.S. Social Security Number. You must also have a U.S. address of record and an account at a U.S. depository financial institution that will accept debits and credits using the Automated Clearing House method of payment. We do not currently permit a legal representative, legal guardian, or trustee to establish an account on behalf of an estate, decedent, trust, or incompetent person. “U.S. person” as referred to in the Online Application refers to a person eligible to open a TreasuryDirect account.”

Jim

I’m making sure all my bank accounts are with banks that have a low chance of failure, and I feel fairly confident investing in stocks that having nothing to do with housing, especially now that prices have come down into more reasonable territory.

I feel the best way to be safe is to not put all your eggs in one basket. Diversify as much as possible. There’s more than stocks, treasury bills/bonds and cash. I wish I knew of a lot more options, but I only know of a few: paying off debt, buying a house to live in, buying additional real estate or REITs, and buying extra staple goods such as canned goods and classic-style clothing.

There’s also putting some in your mattress (some cash on hand is actually good for emergencies involving city-wide electrical problems, for example.) There’s also investing in tools that help you need less money later such as solar panels, clotheslines, manual tools (like can openers and mixers you don’t need to plug in), hair cutting supplies, and supplies for cooking your favorite foods. (Note that buying staples and tools is also risky because they could get ruined and because you might change your mind about what you like as you go through life or as more options become available.)

In either scenario, you had to start with $100, and you finished with $140. Either way your return is $40. The only way selling at $60 and buying at $40 could be advantageous is if you invested in something else while the stock was dropping down to $40. That investment would then have to return more than any fees you incurred from buying and selling, rather than just holding the investment. You also would need to consider the tax implications of selling and then re-buying the stock in the middle.

I’m debating whether to buy more index fund now or keep the money in savings for the new house fund.