Chart of August vs. May GATT Rates

With today's GATT Rate closing at 4.43%, here's an updated chart comparing May's rate to the current month of August:

Re-Post on 72(t) Retirement Distribution Rates

Here is our post from July 22nd that many of you will want to consider for how much retirement income you can potentially withdraw without penalty. We should have an update on the latest rates within about a week:

Mid-Term AFR Rises for August

The Treasury has published the Mid-Term Applicable Federal Rate for August. The rate now stands at 2.80%, up slightly from 2.76%.

This rate is significant because it is used in the calculation of IRS 72(t) payments. In this context, a rising rate generally allows someone to set a higher initial 72(t) withdrawal amount, provided it is prudent and suitable to do so.

Here is a link to the IRS Revenue Ruling listing the new rate.

For more information on how this rate might impact you, please call Harris Financial Group at (800) 281-3980.

GATT Rate on the Rise Again

Today's yield on the 30-yr. Treasury closed at 4.52%.

The unofficial running average for the month of August so far is 4.51%.

Remember that this month's rate will be used for lump sum pension buyouts that use benefit commencement dates in October-November-December 2009. The rate that is in effect for the September 12th EISP is May's more favorable rate of 4.23%.

We have enjoyed meeting and speaking with those of you who are thinking about retiring with this offer. We're available to answer any questions you may have about your retirement options. Please call us at (800) 281-3980 or (804) 526-0544.

GATT Rate at 4.45% on Tuesday

The monthly average for August continues to drop slightly as the yield on the 30-yr. Treasury bond dropped to 4.45%.

GATT Rate Drops Slightly to 4.53%

Monday's yield on the 30-yr. Treasury dropped to 4.53%. Although this is still well above the May rate of 4.23% (which will be in effect for the September 12th EISP), it was nice to see the rate drop a little bit after a pretty sharp jump last week.

We are roughly 1/3 of the way to determining what the monthly average for August will be. Please continue to check this website for updates, or call Harris Financial at (800) 281-3980 or (804) 526-0544.

GATT Rate Ends the Week at 4.60%

Friday's closing yield on the 30-year Treasury Bond was 4.60%, the highest rate thus far in August.

GATT Rate Settles at 4.52% today

The GATT Rate (yield on the 30-yr. Treasury Bond) settled close to 4.52% today. Although slightly lower that Wednesday's yield, the rate is still well above May's rate of 4.23%. For more information about how this may affect your pension, or if you have questions about Verizon's latest EISP offer, please call Harris Financial Group at (800) 281-3980 or (804) 526-0544.

Yield on 30-yr. Treasury (GATT Rate) Rises to 4.56%

The yield on the 30-yr. Treasury Bond closed at 4.56% today.The rate from May (4.23%), which will be used to value lump sums for anyone accepting the September 12th EISP offer, appears to be more attractive than the 4th Quarter rate (August) at this point. A lot can change over the course of the next few weeks, and since you do not have to make a retirement decision until August 29th, please continue to check this site or call Harris Financial Group at (800) 281-3980 or (804) 526-0544 with any questions.

Tuesday's Yield on 30-yr. Treasury Bond is 4.46%

The yield on the 30-yr. Treasury Bond closed at 4.46% Tuesday. The rate continues to head in the wrong direction for those of you considering retiring in the 4th Quarter of 2009. The rate from May (4.23%), which will be used to value lump sums for anyone accepting the September 12th EISP offer, appears to be more attractive than the 4th Quarter rate at this point. A lot can change over the course of the next few weeks, and since you do not have to make a retirement decision until August 29th, please continue to check this site or call Harris Financial Group at (800) 281-3980 or (804) 526-0544 with any questions.

August is Here! Yield on 30-yr. Treasury Closes at 4.42% on First Day of August Trading

The yield on the 30-year Treasury closed at 4.42% today, the first trading day in August. If you have been following our blog, you know that August is the month that will set the GATT Rate for 4th Quarter 2009 retirements. So far, the rate is well above the rate currently in effect for the 3rd Quarter (4.23%). Unless something changes drastically over the next few weeks, it is likely that pension lump sums will be lower in the 4th Quarter than in the 3rd Quarter. We’ll be following the changes in the interest rate very closely on this blog. If you have any questions about this or any other aspect of your retirement, please call Harris Financial Group at (800) 281-3980 or (804) 526-0544.