Worried about Brexit? Our tips for keeping your investments secure
01 October 2019
A lot has been written about the future of Brexit over the past three years, but not much on how it will affect your finances. Currently, there is no final political outcome.
Amid the turmoil, it is important to remember that Brexit is a minor event in the lifecycle of your financial history. Successful investing should be viewed as a long-term goal rather than a short-term event and investing behaviour should mirror this aim.
Should I Change My Portfolio?
Unless you are retiring imminently, there should be no reason to alter the structure of your portfolio to react to immediate political events. It is also not the only political event happening globally so your portfolio should not be constructed around one event.
Should the UK leave without a deal, there could well be short-term instability in the markets, however this should ease in the medium to long term.
During turbulent times, it is important to have a well-diversified portfolio. The UK makes up under 6% of the global stock market, a diversified investment portfolio should help to minimise any risk. We review our clients’ portfolios on a regular basis and re-balance them where necessary to reflect market conditions. If we feel that we need to amend your portfolio, we will be in direct contact with you to discuss the implications.
Is My Money Protected?
In February 2019, an agreement was reached between the UK government and EU that allows financial services companies based in the EU or EEA to continue to provide their services in the UK for at least three years after Brexit day.
The investment providers that we recommend for our clients are all covered by the Financial Services Compensation Scheme. This ensures compensation will be paid in the event of a financial firm falling into administration. For more details on this, please visit the following website https://www.fscs.org.uk/what-we-cover/.
Protecting My Income
Events such as Brexit can cause concern among individuals for their job security. It is prudent to have at least three months' salary as a cash reserve that will help you through any job instability. In addition, it is important to have peace of mind that you and your family are secure. Income Protection insurance pays out for a certain length of time following redundancy.
If you are concerned about how your pensions or your investments are managed, or are interested in discussing income protection insurance, please call our office to make an appointment on 0117 907 1965 or you can email info@absolutewm.co.uk.
Categories: Advice, investments
View all News