U.S. Treasury Securities
In the world of finance, few investments carry the reputation for safety and reliability that U.S. Treasury securities do. They are the cornerstone of secure savings — trusted by individual investors, institutions, and even governments around the world.
At The Jordan Wealth Group, we emphasize the importance of understanding these foundational tools. Whether you’re safeguarding short-term savings or building generational wealth, Treasuries can serve as the stable anchor of your portfolio.
What Are U.S. Treasury Securities?
Treasury securities are debt instruments issued by the U.S. Department of the Treasury to fund government operations. When you invest in them, you are effectively lending money to the U.S. government in exchange for interest payments and a guarantee of repayment at maturity.
Because they are backed by the full faith and credit of the United States, Treasuries are considered among the safest investments in the world. They come in several forms, each suited for different time horizons and goals.
Types of Treasury Securities
1. Treasury Bills (T-Bills)
Short-term securities that mature in 4 weeks to 1 year. T-Bills don’t pay periodic interest; instead, they are sold at a discount and redeemed at full value upon maturity. The difference between the purchase price and redemption value is your earned interest.
Ideal for: Short-term savings or emergency reserves.
Access: Can be purchased directly from TreasuryDirect.gov.
Tax Benefit: Exempt from state and local taxes.
2. Treasury Notes (T-Notes)
Medium-term securities that mature in 2 to 10 years. They pay interest every six months and return the principal at maturity.
Ideal for: Investors seeking predictable income with moderate timeframes.
Common Use: Balancing higher-risk investments with a steady yield.
3. Treasury Bonds (T-Bonds)
Long-term securities with maturities beyond 10 years. Like T-Notes, they pay semiannual interest but over extended periods, appealing to those who want guaranteed income far into the future.
Ideal for: Long-term investors or those planning intergenerational transfers.
Use Case: Providing stable returns for trusts, retirement accounts, or estate portfolios.
Why Treasury Securities Matter
Treasuries provide more than safety — they offer predictability, liquidity, and stability, making them an essential component of a diversified savings and investment strategy.
For individuals focused on building and protecting generational wealth, they serve three key purposes:
Preservation of Capital: Your principal is protected by one of the most creditworthy entities in the world.
Reliable Income: Regular interest payments can support budgeting, retirement, or reinvestment.
Portfolio Balance: Treasuries counterbalance higher-risk assets, smoothing volatility and maintaining financial resilience.
In an uncertain economy, Treasury securities represent calm amid the storm — dependable, transparent, and proven over time.
How to Get Started
You can purchase Treasury securities directly through TreasuryDirect.gov, through most major banks, or via brokerage accounts. For those new to these products, start small — experiment with a short-term T-Bill or a modest allocation in a brokerage account to observe how it performs within your broader financial system.
At The Jordan Wealth Group, we guide individuals toward understanding not just where their money sits, but how it moves and protects them. Treasuries exemplify this principle: structure, safety, and steady growth.
Security today creates strength tomorrow.