Financial Intel Monthly

The first half of 2021 is behind us. As life emerges from the pandemic to a "new normal," a mid-year financial checkup may be more important than ever this year. Here are some ways to make sure that your financial situation is continuing on the right path.

Reassess your financial goals

At the beginning of the year, you may have set financial goals geared toward improving your financial situation. Perhaps you wanted to save more, spend less, or reduce your debt. How much progress have you made? If your income, expenses, and life circumstances have changed, you may need to rethink your priorities. Review your financial statements and account balances to determine whether you need to make any changes to keep your financial plan on track.

The Markets (as of market close July 23, 2021)

Interest rates increased, which will minimally reduce the value of ExxonMobil employees' pension lump-sums. Over the course of 2020, interest rates at ExxonMobil dropped dramatically, which greatly increased many lump sum payments. This culminated in record low rates for individuals that commence their benefits in the first quarter of 2021. However, we saw an increase in rates for the second & third quarters of 2021 and now fourth quarter rates have risen slightly higher. Rates rose roughly 0.04% in the most significant segment, in the last quarter.  

Interest rates are increasing which will reduce the value of ExxonMobil employees' lump-sums. Over the last year, interest rates at ExxonMobil have dropped dramatically, which has greatly increased many lump sum payments. This culminated in record low rates for individuals that commence their benefits in the first quarter of 2021. However, we saw an increase in rates for the second quarter of 2021 and now third quarter rates have risen even higher.  Rates have risen roughly 0.5% in the most significant segment, just in the last quarter.  If this trend continues, we could see a significant reduction in ExxonMobil lump-sum values. ExxonMobil's 4th quarter rates will be released next month, but early signs show they appear to be trending upward.