ATTN BP Employees,
Interest rates for February, impacting retirees collecting their BP RAP benefits on June 1st, 2022, saw a rapid increase. The Federal Reserve recently announced that for the first time in three years, it would increase short-term interest rates by a quarter of a percentage point. In addition, the Fed has stated that it would like to see short-term interest rates near 2% by the end of the year, which would mean a hike at each of the remaining central bank meetings this year.
While many investors have remained positive on the Fed’s aggressive move to combat inflation, even Fed officials acknowledge higher rates could slow economic growth this year. This cautious stance is attributed to the upward pressure on inflation caused by the ongoing invasion of Ukraine. We anticipate these recent moves by the Fed indicate that interest rates will continue to head even higher. This significant increase to interest rates will cause a substantial drop to Heritage Employee’s lump sum values thus, we 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 firstname.lastname@example.org or call us directly at (877)739-6007.
Capstone Wealth Advisors
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