30-Year Treasury Yield Falls – Good News Heading Into August?

The yield on the 30-yr. Treasury fell today to 4.31%. Although this yield is still higher than May’s monthly average of 4.23%, it was an encouraging way to close the month of July as we head to the all-important month of August. Why is August so important? Because August’s monthly average yield will be the GATT Rate that is used in Verizon Associate pension calculations for October-November-December retirements.

As many of you have seen, your lump sum amounts declined drastically from June to July. The August rate will give us tremendous insight into what the drop-off could be from September to October. So, for those of you debating whether to accept the September 12th EISP offer, it is very important that you pay close attention to the yield on the 30-year Treasury throughout the month of August. We will be reporting that information right here on the blog, and we’re also standing by to help you.

Please call Harris Financial at (800) 281-3980 or (804) 526-0544, and ask for Carl, Jamie, or Steve.

30-Year Treasury (GATT Rate) at 4.45%

The yield on the 30-year Treasury Bond is 4.45% as of today. Although the rate has declined in the past few trading sessions, the rate of 4.45% still represents an increase of 22 basis points over May’s rate of 4.23%. The change of the rate from 3.59% to 4.23% resulted in a significant reduction in lump sum pension amounts, and unfortunately, as of now, that trend is continuing. This is something to watch very closely if you are debating whether to accept the September 12th EISP offer from Verizon. Please call Harris Financial Group at (800) 281-3980 or (804) 526-0544 with any questions about how this may affect your retirement.

Verizon Rumors Heating Up

We're starting to hear strong rumors of an EISP offer with an off-payroll date September 12th. The difference in retiring in September vs. October could be very significant from a lump sum standpoint, as the GATT rate seems to be on the rise.

Verizon reported its 2nd Quarter earnings today and plans to cut about 8,000 jobs during the second half of 2009.

30-year Treasury Yield Rises to 4.6%

Things are heading in the wrong direction for those of you planning to retire in the 4th quarter of 2009. We now have just 6 trading days left until the August rate begins it's month-long average, and the rate has headed higher over the last few days. Stay tuned!

Video Link to Jamie Cox's Appearance Today on CNBC

Link to Jamie Cox's appearance on CNBC.

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.

Jamie Cox to Appear on CNBC on July 23rd

Harris Financial's Jamie Cox will appear on the CNBC television show "Power Lunch" on Thursday, July 23rd at approximately 12:05pm. We will post a link to the interview as soon as it becomes available.

30-yr Treasury Yield at 4.466%

Another relatively calm day. Just 9 more trading days until August, when it will be really important to watch the rate.

GATT Rate Ends the Week at 4.53%

Not a good week for those of you hoping the rate comes back down for the month of August. There's still time for that to happen, and we'll watch closely next week.

The rate is now almost 100 basis points (1%) higher than it was for June 27th retirees, potentially resulting in huge reductions in lump sum amounts.

GATT Rate at 4.45% Today

A fairly calm day for the 30-year Treasury Bond today saw the yield drop slightly to 4.45%.