It is often said that the Chinese symbol for the word “crisis” is formed of the elements representing “danger” and “opportunity”. If we are now in a post Brexit crisis, as many believe, here are my thoughts on reducing dangers and making the most of opportunities.
But first take a look at my pre Brexit blog. My nervousness about the outcome proved to be well founded and the general guidance to take a more cautious investment stance and make sure that your emergency funds were still adequate was spot on.
So where do we go from here?
CASH RESERVES – If you didn’t take pre Brexit action it is not too late. No funds you will need in the next three years should be exposed to stock market fluctuations. If necessary cash in some investments now.
IGNORE THE NOISE – I know it is difficult but it’s bad news that sells newspapers. If you are a medium term investor and have sufficient cash reserves just ignore the noise and stick with your strategy.
PAY ATTENTION – In difficult times you just need to pay a little more attention. If your chosen fund manager(s) are not performing well against other fund managers in their sector then make a change. I only hold funds in the Hargreaves Lansdown Wealth 150 list. If the experts have narrowed down more than 2,500 funds to 150 top managers who am I to argue?
REDUCE FEES – In difficult times it is even more important to make sure that fees are not eating into performance more than is necessary. If you are using a Financial Adviser ask him for a detailed fee breakdown and then negotiate. If he is not earning his fees think about moving to one of the “non-advice” platforms such as Hargreaves Lansdown. Guidance from The Investment and Retirement Coach programme on transferring funds is available just by clicking the “request more info” box on the right or here.
SHORT TERM TRADING – Don’t confuse a medium term investment strategy with short term trading which is aiming to make money out of the market volatility. There is no harm in doing some short term trading with “fun” money. If you would like to know more about my “fun money” strategy just pop “short term trading” in the contact me box. There is money to be made. A buy and sell in the immediate post Brexit week returned 3.5%. Not bad for five days.
MAKE THAT PENSION WORK – There are billions of £s languishing in expensive, poor performing, pension plans. If times are going to be difficult at least make sure your existing funds are working as hard as they can. The Investment and Retirement Coach Pension Consolidation Strategy can guide you through the process simply and safely. Just pop “consolidation strategy” in the contact me box.
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