ATTN BP Employees,

Interest rates for December, impacting retirees collecting their BP RAP benefits on April 1st, 2022, saw a modest increase from November’s rates. While this slight increase in rates will cause a slight change in your pension value, we caution BP Retirees that future interest rates in the coming months are likely to be significantly higher as the Federal Reserve begins to increase interest rates in order to combat higher-than-normal inflation. Our current forecast indicates we should see a substantial increase next month, as indicated in the attached chart.

Last week the Federal Reserve released the minutes of its January meeting and reaffirmed their plan to begin increasing rates in March. They also announced they will begin to stop their massive bond buying program – a move that puts upward pressure on interest rates. Bond markets reacted sharply to the news with rates moving higher almost immediately after the announcement.  We believe this trend will continue and thus are recommending BP Retirees strongly consider filing for your pension as soon as possible.

Understanding how interest rates can affect your pension value is a valuable tool for you. If you would like to learn more about how your pension is impacted by interest rates, please do not hesitate to contact one of our experienced financial advisors who specializes in knowing the inner working of your BP RAP plan. This service is free of charge for all BP Employees and Retirees.

To schedule a complimentary consultation with our team email info@capstonewealthadvisors.com or call us directly at (877)739-6007.

Regards,

Capstone Wealth Advisors

Bellingham, WA

877-739-6007

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Stock investing involves risk, including loss of principal. International & Emerging Markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in Emerging Markets.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

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