Interest rates for October, affecting retirees collecting their BP RAP (Retirement Accumulation Plan) benefits on February 1st, 2023, moved mostly in-line with our estimate for rates. In the coming month, we expect interest rate decreases from current levels as the Federal Reserve Bank begins slowing down its rate increases. This is good news and welcome relief for your BP RAP that has seen rapid interest rate increases over the past 10 months.
The financial markets are on edge this year each time Fed Chair Jerome Powell takes the podium following a Federal Open Market Committee (FOMC) meeting. Initially, investors cheered when the official FOMC statement suggested that the Fed would consider all data before adjusting rates again. But Powell crushed the enthusiasm in his post-meeting press conference, saying the current inflation data did not support any change in the Fed’s position. In many ways, Powell’s tough talk is understandable. Throughout 2021, he told investors that inflation was “transitory” and the FOMC made no change to monetary policy. But in 2022, inflation has been stubbornly high, and it’s the Fed’s job to maintain price stability.
If you are considering retiring this year or next, we cannot stress enough the importance of getting professional advice during this highly volatile time. Financial markets are likely to continue their downward trend as we look at the remainder of 2022. Choosing the wrong month to collect your retiree benefits could cost you thousands of dollars. Our team at Capstone Wealth Advisors specializes in knowing the inner workings of your BP Retirement Plans and how to help you make the decision that best suits your individual situation.
If you would like to learn more about how your pension is impacted by interest rates or if you are concerned at the overall situation of financial markets today and would like advice about how we believe you should navigate it, 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 email@example.com or call us directly at (877)739-6007.