RAP/Pension InterestRate Chart December 2019

BP EMPLOYEES,

November’s interest rates, affecting March 1st, 2020 benefit commencement dates, increased slightly and were mostly in-line with our expectations. This means pension values should have decreased slightly but, not in a significant manner. In looking back over the past 6-months, we saw a large interest rate drop occurring in July and since then interest rates have mostly remained at those levels. If you follow our monthly pension emails you know we have been optimistic regarding chances of interest rates remaining at these low levels for some time.

Looking towards our forecasted December final interest rates, we are expecting rates to remain mostly the same. This outlook is especially good news for those of you looking to retire in April 2020 because it will mean you are getting the benefit of rates remaining low since last July.

In the larger context of where interest rates are heading as we embark into 2020, the Federal Reserve Chairman, Jerome Powell, stated in his Dec 11th press conference that he expected interest rates to remain at their current levels “…as long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy likely will remain appropriate…” Currently the Fed is projecting continued stable economic growth and low unemployment for all of 2020. While he did acknowledge there are some risks to the overall economic stability in the US, he further indicated that it was unlikely the potential risks would be material enough to change the course of the current economic expansion.

You can rest assured we are watching the direction of interest rates and its effect on your pension values very closely and will be notifying you if there are any major changes that need to be made. If you will be separating or retiring from BP in 2020, we would highly encourage you to talk with one of our retirement planning specialists who can help you understand what your potential retirement timeline looks like and how to strategically plan your exit. Please feel free to contact us directly at (877) 739-6007 or at tyler@capstonewealthadvisors.com. As always, we will assist you free of charge and with no obligation.

Tyler E Ryan

Capstone Wealth Advisors

877-739-6007

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