Brexit: Asset Strategies Offers Three Quick Answers to a Complex Situation

AVON, CONN. - On June 24th, the world woke to the news that the United Kingdom will be leaving the European Union after a referendum vote. Following the decision, the market demonstrated its lack of confidence in the decision – the British pound dropped to its lowest level since 1985, Asian markets demonstrated panic, and we saw an influx of investments from London markets to seemingly safer assets in the U.S. and Japan.

Although the exit will likely take 2 years to finalize, Alan Rothstein, founder of Asset Strategies offers three quick answers to investors:

1. What does this mean for my retirement savings?

Following the Brexit decision, we’ve seen a significant level of volatility. In the short term, we believe the market will continue to be volatile with modest returns. As a retirement-saver, it is important for you to keep a long-term perspective. While there will always be long-term uncertainties, the U.K. makes a small contribution to global growth (about 3-4%). We will be actively watching to see if this action causes a political contagion for other EU member countries.

2. I’ve seen big losses in my IRA. Everything I see on the news tells me the situation will get worse. Should I get out now?

First things first- take a deep breath. The only way to meaningfully lock in your losses, is to sell. On a day to day basis, we don’t know how the market will react, positively or negatively.

Try is to take the Brexit doom-and-gloom media message with a grain of salt. The media is in the business to sell headlines, so stories can become over-exaggerated and sensationalized. Historical data has shown that disciplined investors are rewarded over the long term. So please, do NOT make a knee-jerk reaction.

3. If I shouldn’t sell, is there anything I can do to protect my savings?

You can always move your assets to cash if you just can’t sleep at night because of the volatility. Before you go down this road, consider that you will most likely earn a dismal interest rate, and you will likely have to drastically change your current lifestyle and your retirement plans. For most, this isn’t an acceptable strategy.

We believe that a diversified portfolio that is adjusted for your individual risk tolerance is your best short term and long term protection. With expert management, and being invested in both stock and bonds in the U.S. and abroad, you can help alleviate your downside risk.

-More-

About Asset Strategies

Alan Rothstein, CPA, PFS is founder of Asset Strategies, Inc. At Asset Strategies, we take a holistic approach to your finances: one team, under one roof, caring for all your personal financial needs. On a fee-only basis (we'll never sell products), we provide financial planning, asset management, and tax planning and preparation services. We serve clients across the country from our offices in Avon, Connecticut and New York City. Visit www.assetstrats.com to learn more.

Important Disclosures:

The views expressed represent the opinions of Asset Strategies, Inc. (Asset Strategies) and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person.

-30-

CONTACT:

Emily Wood

Emily@assetstrategies.com

Asset Strategies

860.673.5500