Interest rates for September, affecting retirees collecting their BP RAP (Retirement Accumulation Plan) benefits on January 1st, 2023, moved mostly in-line with our estimate for rates, showing a dramatic increase as we had predicted. In the coming month, we expect to see an even more significant increase in ALL rates affecting your BP RAP value.
Inflation’s “stubbornness” has been on full display in recent weeks: First, the Producer Price Index (PPI) showed that costs remain high for producers of goods and services. Then in September’s more widely followed Consumer Price Index (CPI) high prices continued to persevere. To address inflation, the Fed’s primary tool is raising short-term interest rates. As it pushes rates higher, the Fed aims to slow the economy by raising borrowing costs. As economic activity cools, the Fed expects to see the CPI and PPI trend lower. At it’s November meeting, the Fed is expected to raise short-term rates another 0.75% to between 3.75% – 4%. Professional traders now expect an additional 0.50-0.75% increase at the Fed’s December meeting.
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 firstname.lastname@example.org or call us directly at (877)739-6007.
Capstone Wealth Advisors
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