Jed, I was asking Rick for some input on buying Treasury bills and he
said you might know more about it.  Do you have any suggestions before
I make a purchase, I'ld appreciate hearing anything you may know about
it.

Farrokh

You can buy Treasury Bills from a Broker and pay a fee or you can buy
them directly from the Federal Reserve and pay no fee.

You can set up a Treasury Direct Account before you buy anything or you
can set it up with your first purchase.

Treasury Bills are by definition one year or less. Notes are 1 - 5 years
(I think) and Bonds are even longer.

If you buy a Treasury Bill, you must pay for it with Certified Check or
Money Order. No personal checks. Notes and Bonds can be paid for by personal
check.

The way they pay you is by Electronic Funds Transfer to your bank account.
You simply provide them with your bank's routing number (it is on your check)
and your account number (it can be checking or savings).

Treasury Bill are sold at a discount. You buy a Bill for $10,000 they
Treasury Bill are sold at a discount. If you buy a Bill for $10,000 they
send you the 'interest'. It isn't exactly interest because you don't pay tax
on it until the year in which it comes due. If you buy a six month Bill today
you get the interest now but it is considered 1992 income. The interest rates
are understated because they don't take into account the fact that you can
have the'interest' now and can invest it for additional yield.

Treasury obligations are NOT TAXED BY THE STATE OF CALIFORNIA.

You can set up a Treasury Direct Account and buy Treasury obligations from
the Federal Reserve Bank of San Francisco. You can call 415-882-9798 for
a general announcement, 415-974-2330 to talk to a person, or 415-974-2629
which is an answering machine where you can order forms. You can call it and
say "Please send me the forms and information for setting up a Treasury Direct
Account and buying six month Treasury Bills." And they will.

Jed

 Thanks, now I can get started on this.