In The Details

Financial Articles from Hefren-Tillotson

Been Down So Long It Looks Like Up to Me

July 24, 2017

Been Down So Long It Looks Like Up to Me is the name of a famous 1966 novel by author Richard Faria. It might also describe how savers feel now that short-term interest rates have finally risen. One percent interest rates on short-term vehicles wont make anyone rich, but it feels a lot better than zero.

As rates rise, investors will see more advertisements for savings vehicles. Investors should choose carefully. In the past, for example, many ultra-short term bond funds have exhibited far more risk than investors probably signed on for (chart).

One good question to ask is whether the savings vehicle is safe by nature, or if it pushes the envelope in an effort to maximize yield. For conservative investors and savers, a low risk approach is better.

 

About Hefren-Tillotson

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 firms wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFSs. 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.

 

Disclosure: 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.