I thought more people were aware of this. But just in case, I will share the strategy I have
put in place to protect my cash balances.
At TDAmeritrade I set up a electronic funds transfer link to my local bank checking account. I
have also set up to have cash moved to their US Govt. reserves fund but the bank account link
gives me an ultimately safer option.
I went to www.treasurydirect.gov and set up an account with them that is also linked to my bank checking account. You can buy T-Bills directly from the government for as little as $1,000 by taking the average yield of a treasury auction. They will do an electronic transfer from my linked bank account to pay for
the T-Bills and when they mature they will deposit them back in my bank account. You can also choose to have the T-Bills rollover when they mature.
Unfortunately, you can't link your brokerage account to your treasurydirect.gov account since they require that you use a regular bank.
Good luck and I hope this helps some of you.
More on protecting cash balances
Started by
underabigw
, Aug 10 2007 10:36 PM
2 replies to this topic
#2
Russ
-
- Traders-Talk User
- 7,199 posts
Member
Posted 10 August 2007 - 10:52 PM
Thanks that is interesting insurance.
"Nulla tenaci invia est via" - Latin for "For the tenacious, no road is impossible".
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
#3
vitaminm
-
- Traders-Talk User
- 6,701 posts
Member
Posted 10 August 2007 - 11:45 PM
I thought more people were aware of this. But just in case, I will share the strategy I have
put in place to protect my cash balances.
At TDAmeritrade I set up a electronic funds transfer link to my local bank checking account. I
have also set up to have cash moved to their US Govt. reserves fund but the bank account link
gives me an ultimately safer option.
I went to www.treasurydirect.gov and set up an account with them that is also linked to my bank checking account. You can buy T-Bills directly from the government for as little as $1,000 by taking the average yield of a treasury auction. They will do an electronic transfer from my linked bank account to pay for
the T-Bills and when they mature they will deposit them back in my bank account. You can also choose to have the T-Bills rollover when they mature.
Unfortunately, you can't link your brokerage account to your treasurydirect.gov account since they require that you use a regular bank.
Good luck and I hope this helps some of you.
TD may keep your money and may not inform you on right time!!!
vitaminm
