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INDIVIDUAL RETIREMENT ACCOUNT: The name says it all
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Good News for Borrowers and Savers

The rates on long term treasury bonds are little changed since the Fed began raising its benchmark rate in December 2015. The 30-year Treasury is 3.0% today, precisely where it was when the Fed began to hike.

In contrast, short term interest rates have risen meaningfully. Three-month LIBOR (a common measure of short-term rates) has risen from 0.5% in December 2015 to 1.15% today.

Taken together, these developments are good for both borrowers and savers. Many loans, including mortgages, are based on long-term interest rates. The average 30-year fixed mortgage rate is 4.0% today, up only fractionally from 3.9% in December 2015.

On the flipside, for the first time in a decade, savers are able to obtain non-negligible yields on short-term holdings, including ultra-short bond funds that now yield north of 1%. We are increasingly looking for opportunities to incorporate these vehicles into client accounts, where appropriate.

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This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.
Investment Advisory Team
Hefren-Tillotson

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Hefren-Tillotson Inc. is a leading diversified financial services firm providing investment and retirement plan management and comprehensive, financial planning through MASTERPLAN® for individuals and businesses. The firm’s wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFS’s. Hefren-Tillotson offers corporate services including 401(k) retirement planning, executive financial counseling, fiduciary reviews and workplace financial planning seminars. Founded in 1948, the firm is headquartered in Pittsburgh and has offices located in Pittsburgh, Butler, Greensburg, North Hills, and South Hills.