Watch the full video here: https://youtu.be/2V0dtUqHWXQ T Bills, short for treasury bills, are just ultra-short-term bonds from the U.S. government. These short bonds with maturities of less than a year are called bills. Because they’re backed by the full faith and credit of the U.S. government, they possess no liquidity risk, credit risk, or default risk inherent of corporate bonds. As such, T Bills are quite literally the “risk-free asset,” as they’re called. These special, seemingly boring bonds are considered a “cash equivalent.” At this point you might be thinking this all automatically means negligible returns from treasury bills, but you’d be wrong. Their annualized historical return from 1928 to 2020 was 3.32%. The average rate of inflation over that period was 3.02%, which means a real return (return adjusted for inflation) of 0.3%. T Bills are sold at a discount and don’t pay a coupon like most bonds, so they simply return their face value at maturity. The difference between your purchase price and that face value is your “interest.” This might sound crazy, but there have also been extended periods where T Bills outperformed the stock market: the 15 years from 1929 to 1943, the 17 years from 1966-82, and the 13 years from 2000-12. Read the blog post here: https://www.optimizedportfolio.com/t-bill-etfs/ #treasurybills #tbills #governmentbonds // INVEST ► M1 Finance: https://optimizedportfolio.com/go/m1 ► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1-finance-review/ ► Get my dividend portfolio: https://www.optimizedportfolio.com/m1-finance-dividend-pie/ ► Lazy Portfolios: https://www.optimizedportfolio.com/lazy-portfolios/ ► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/beginners-start-here/ ► Webull (for stock traders; get 2 free stocks): https://act.webull.com/kol-us/share.html?hl=en&inviteCode=iKJHc5TS9HSe // SOCIAL ► Website: https://www.optimizedportfolio.com/ ► Patreon: https://www.patreon.com/optimizedportfolio ► Facebook: https://www.facebook.com/optimizedportfolio/ ► Instagram: https://www.instagram.com/optimizedportfolio/ ► Twitter: https://twitter.com/OptimizedPort ► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc I appreciate all the support! Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/terms/ Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.