If you are unsure what to do with your pension and investments post Brexit, here are some tips to help you form a plan.
Timing is important if you are confused about whether to act or not to protect your wealth, but now is always the best time to review your holdings.
Start with making sure you have enough cash in the bank for two contingencies –
- Money to pay the bills in an emergency for at least three months
- Money to speculate on the markets as and when investment opportunities become available
Look at your personal arrangements. Make sure you have a will, life insurance and have left a clear explanation of your assets and how to access them for your family.
Time is on your side
If you are under 50 and saving for retirement, you have plenty of time to make up any drop in fund values due to stock market volatility.
Stay calm and do not panic if the market falls sharply.
Historically, stock market investors always win in the long term – that’s holding stock for 10 years or more.
Winners also tend to spread the risk, so they diversify their cash across different market sectors and funds.
Look at shares and funds across different markets and global regions.
If you are over 50, the message is still stay calm. Shifting money between funds or accounts costs money that may never be recovered even if the yield seems better and there is no guarantee of performance.
Trackers and reinvesting dividends
You may lose money if you intend to give up work soon, so check out your retirement budget and see if you need to tweak how much you are saving.
Experienced investors, such as billionaire Warren Buffett suggest market trackers perform best and reinvesting dividends gives investments a real boost.
Investing is also about factoring in tax-effective strategies, like sheltering shares in a SIPP or a Qualifying Recognised Overseas Pension Scheme (QROPS) and not forgetting the new dividend and savings allowances.
The same hints apply to expats and British taxpayers – but tax shelters will depend on where an expat is resident.
If in doubt about the best way to safeguard wealth, talk to a qualified and regulated financial adviser who has the experience to recommend pension and investment options.
