TT$23,614 /24 = $983 per month
In terms of investing, I prefer to receive interest in January 2019 as the tax becomes due in Mar 2019, hence I would apply for 181 day Treasury Bills as suggested in #2 in the question.
Please note that I have ignored taxes on the receipt of funds or I intended to use other funds to pay the taxes which would have arisen on the receipt of the original funds.
So back to the allocation of funds over 2 years:
Period 1: July to Dec 2018 = 6mths *TT$983 = TT$ 5,898
Hold 6 months of payments in cash = $5,898
Since mathematically neither the six month amount nor the per month amount allows for the deduction of interest of the Treasury Bills the allocation may be tweaked as follows:
Investment #1: $6,000
Investment #2: $12,000
Interest Calculations =
6*8.35 = 50.10
12*8.35= 100.20
The above changes allow for the per month amount to be smaller in the first 6 months, as $5,614 is left to be used in the first six months of the investment cycle as follows:
Inv 1 $ 6,000
Inv 2 $12,000
Subtotal $18,000
#3 $ 5,614 hold in cash
Total $23,614
Assumptions: Allow $50.10 to be used for charges incurred and hold the $100.20 to act as a buffer.
Revert to Opt 1 and allocate $10 to original owner of the ticket ( $1,967*12
$23,604 - $23,614. Deduct $10 out of cash held of $5,614.Thus the instructions would be:
Re: Treasury Bills to mature in approximately 181 days:
i) Pay to Central Bank - $11,899.80
ii) Pay to Central Bank - $5,949.90
iii) a) Allocate $934 per month for the period July - Dec 2018
b) Allocate $1,000 per month for Jan - Jun 2019
c) Invest $6,000 out of the $12,000 for 6 months in Feb 2019 with a maturity date of July 2019 - Charges of $50.10 to apply.& $6,000 as identified in (ii).
A - Pay CB $5,949.90 to mature in July 2019 - 181 day Treasury Bills
B) Pay CB $5,949.90 to mature in July 2019 - 181 day Treasury Bills
July 2019
Invest $5,949.90 in Treasury Bills to mature in Jan 2020.
Some of the assumptions which are not stated may be:
1 There are other sources of income which may supplement the funds which are allocated during the 2 year period.
2 Interest rates may change during the period and as such the decision to hold the "bid" amount may be amended.
3 If the bid is not accepted at the rate offered, then a higher or lower amount may be received as interest income.
4 If the bid is not accepted for the amount which is offered, alternative investment strategies may be considered.
5 Identify another bank or investment account which can be used to hold the interest amounts during the investment periods.
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