This post first appeared on my substack page - 8percentpa.substack.com and I have repackaged and reproduced it here as this idea remains very palatable and perhaps relevant for everyone since T-bills are risk free. Your grandmother should buy T-bills. We have also discussed T bills below: Singapore T-bills Full Analysis Invest in Risk Free Singapore T-Bills! Only Singaporeans and Singapore's Permanent Residents can invest in T bills. But I did some googling and surfed around at: https://www.treasurydirect.gov/ I believe the process is similar and most investors can similarly invest and earn c.4% annual return by buying US government T-bills. This post serves to illustrate the strategy and process to go about doing this investment optimally and how to think about your savings in a broader context. Ok, let's dive into it.

1. Fundamentals

The chart below shows the cut-off yield for Singapore Government T-bills with data going back to 1987,...