BizInsights This content is part of BizConnect and is made possible by our sponsors. Click here to learn more.

Brexit: How it still will likely impact your portfolio

Brexit was only one of 2016’s many big surprises. I remember that sunny summer day when U.K. voters stunned the experts, deciding the U.K. should leave the European Union. Uncertainty rippled from the decision, which shook investors and markets all around the world.

At the time of the vote, we took care to encourage caution – and patience. We knew that many critical steps still needed to take place, and that nothing was going to happen immediately.

Today, the U.K. still struggles with the 2016 vote. March 2019 represents a critical month in the Brexit timeline, a month where three critical votes could have caused a lot of market turmoil. Instead, it appears the can has been kicked down the road again, but there will be a point where all of us – the markets, investors, and everyday people – will have to come to grips with the decisions made in the U.K.

I know that whatever is decided several time zones away on the banks of the Thames can seem so very, very far away from your financial plan. After all, what does Brexit have to do with you and your retirement savings?

Take this moment as a good time to audit what you own and rebalance. Rebalancing is using plan-driven criteria to assess and reallocate what you own.

Brexit is a good instance to consider rebalancing because March’s U.K. votes will have an impact on international markets and currency. Recent Brexit uncertainty has been a key component of the recent faltering value of the Euro and the pound.

At the same time, we’ve seen a strong dollar, which means U.S. companies that sell goods to foreign customers suffer because, relative to a weaker currency, our goods and services cost more.

As we experience the outcomes from these votes, make sure your financial plan is balanced and not overly invested in one particular market. If you notice your holdings have shifted heavily towards the U.S. market, for example, make sure you reallocate your investments to better reflect your financial plan.

Brexit gives you a good chance to recalibrate your holdings – and your plan. If you struggle with a comprehensive plan that considers global markets and currency, find an advisor you can trust who can listen, react, and help you face the future confidently.

Sign up for the BizTimes email newsletter

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

Dave Spano - Annex Wealth Management
Dave’s 38 years of experience in the financial services industry has helped to shape the vision behind the establishment and growth of Annex, an elite fee-only fiduciary financial services firm. Under Dave’s direction, Annex Wealth Management® brings together high-quality, client-focused professionals from the investment advisory, retirement, tax and estate planning fields to form a client service team prepared to meet the financial needs of people, businesses, and non-profit organizations.

Sign up for the BizTimes email newsletter

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin