Would you rather invest 250k in T-Bills in this market?

[Peter Morgan]

Hello,

I have a 500k mortgage on a triplex @2.5% interest and 250k of cash in sitting in a savings account yielding at 2.5%. The treasury bill yields are getting close to 5%. I am feeling tempted to invest my free cash into T-Bills to completely offset my mortgage interest without any risk.Is this a bad idea? Can I do better passively in a hands-off fashion with other investment vehicles such as syndications in this market?

[Greg Scott]

Apples and Oranges

T-Bills are a safe short-term investment with lower returns backed by the US government and provide a very high probability of being paid.

Syndications, assuming you have a good operator and underwrite the deal conservatively, can provide large returns but are long-term investments.  Any cashflow projections they make are simply projections and may end up being higher or lower and are not guaranteed.