Brexit, the EU and all that – Financial Planning Considerations

It seems that we live in very interesting times! Your team here at the Basi & Basi group have been tracking the effects of the EU referendum, and at 04:40am we decided that this was indeed a Brexit.

This post is written around an hour later after some contact work with our European clients, as we await our UK clients to wake up and we can remind them of a few key things;

  1. Nothing changes technically this morning. The process will take some time;
  2. Despite (1), the markets are wildly reacting already;
  3. Despite (2), the sky is not falling in;

It is worth gaining some perspective ahead of wild swings in the stock markets which have already begun in Asia, and we expect on the FTSE 100, CAC, Dax and S&P 500 etc. etc.

Let us remember what the financial markets have survived over the past 100 years or so;

  • 2 world wars;
  • Simmering potential nuclear war;
  • End of empires, rise of fragmentation;
  • 2 financial depressions;
  • Multiple recessions;
  • Collapse of the international League of Nations;
  • Collapse of the USSR;

Sail the Stormy Financial Seas

We could go on. The point? Lots of momentous things happen in history. By it’s very nature, navigating the sea of human decisions is a choppy affair. But investment decisions for the long term need to look beyond even huge events, to the long-term fundamentals.

So if you are sitting there worried about how this will affect your retirement, should you now proceed with Flexible Drawdown, or that Annuity, or that investment bond, or that ISA etc. etc. – well, your adviser is best placed to run through this with you so have a chat with them. And yes, fundamentals may change as a result of this vote, but the time to implement that into portfolios is usually not at the moment of emotional reactions.

As the saying goes, “steady at the helm”!

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