RAP/Pension InterestRate Chart November 2021

BP Employees,

November’s interest rates, which impact retirees collecting their BP RAP benefits on March 1st, 2022, closely followed our forecast that rates would begin to rise after the new year. While rates did conform to our expectations and were close to our estimates last month, we are adjusting our outlook for the first part of 2022.

With the emergence of the new Omicron variant, we believe there is a potential for the financial markets to be greatly impacted. Although initial reports from medical community suggest the symptoms of the new variant are mild, the reaction from governments around the world has been severe. Travel bans have been reinstated and other “lockdown” type measures reminiscent of 2020 have been implemented to thwart the spread of the variant around the world. Regardless of the whether the new restrictions are justified, we believe the impact on financial markets will be noticeable. We also anticipate a period of enhanced volatility as the medical industry evaluates and determines the threat this new variant poses.

For those of you considering leaving BP at the end of this year or in the first part of 2022, we encourage you to take a “wait and see” approach allowing time for a final determination regarding Omicron’s threat and the subsequent reactions that will occur. If Omicron is determined to be a major threat, we would expect bond rates to take a large drop for the time being. Conversely, if the initial reports of mild affects are accurate then we would anticipate seeing bonds continue their upward trend.

If you have already filed for your pension (January 1st Benefit Commencement Date) or later, it is not too late to hit the “pause button”. Simply give us a call and we can help you determine what is the best approach to take given your personal situation.

If you are considering retiring or separating from BP in the near future, we strongly recommend you contact our dedicated team of BP Employee Retirement Specialists. We can help you understand how and when to collect your pension benefits. 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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