I have some money sitting in my Fidelity account that I plan to use to buy stocks soon. Not sure when it will be used, could be a couple of days, 1 week, 2 weeks form now, or even longer, depending on when the chances come.
Does it make sense to put the idle money in T-bills so it can at least generate some income while waiting to be invested in stocks? An extreme example would be to buy T-bills today, and sell them 2 days later and immediately use the money to buy stocks the same day. My thinking is that it at least makes 2 days of interest which is better than nothing, but since I'm new to investment I just wanted to make sure it does make financial sense before actually doing it.
If it makes sense, is it better to buy a very short term T-bill that matures in less an 1 month? Or are 3 months or 6 months better? Or no difference?
Should I avoid T-notes and T-bonds?
If it doesn't make sense or if there are better options for my purpose, please let me know.
Thanks for your help!
Does it make sense to put the idle money in T-bills so it can at least generate some income while waiting to be invested in stocks? An extreme example would be to buy T-bills today, and sell them 2 days later and immediately use the money to buy stocks the same day. My thinking is that it at least makes 2 days of interest which is better than nothing, but since I'm new to investment I just wanted to make sure it does make financial sense before actually doing it.
If it makes sense, is it better to buy a very short term T-bill that matures in less an 1 month? Or are 3 months or 6 months better? Or no difference?
Should I avoid T-notes and T-bonds?
If it doesn't make sense or if there are better options for my purpose, please let me know.
Thanks for your help!
Statistics: Posted by RCKC — Sun May 19, 2024 2:03 pm — Replies 3 — Views 210