What will happen to my investments after the referendum? and When should I get my Euros for my Summer Holiday?

What is really risky?

The News often seems to affect stock market returns and the Brexit referendum on 23rd June is no different to that. There is certainly a lot of news on this topic, and quite right too; it is important. But are we missing a bigger picture? Perhaps. Let's see…

There are daily changes to prices as the news announces which side is edging ahead, and we're seeing this most with currency. Up to now, every time we hear that the 'Leave' campaign has had a good day, £Sterling has weakened a bit.

What will the markets do?
What we know so far is that the stock market expects the decision to remain in the Euro. In other words, I expect the market to fall if we a vote to leave.

I don't really expect much of a market rise if we vote to stay. A bit, but not much. And perhaps not for long.

So should I sell up for a few weeks?
That might make me think that long-term investors should sell out until the trouble blows over, but I think it's safer to keep the long term goals in mind. There's a risk that short term distractions tempt us to miss the point a little.

There are always 'headwinds' - things that could make the markets suffer. The big difference about this referendum is that we've had weeks to know that it's coming up so some investors have time to wonder if they should get their money out.

That's understandable. We would all miss out on the worst losses if we could.

However, it is very difficult to avoid the worst losses, without also missing out on the best gains, since they both tend to happen on single days. I've been watching for a couple of decades now, and I'm still looking for proof that selling up for the short term really works.

What about my holiday spending money?
If the news tells you that Sterling has weakened against the Euro, or against the Dollar, then you'll get fewer Euros or Dollars for each £pound Sterling you have to spend on them.

Right now, 1 Euro costs about 80p.
If you picked the best day (19th July last year) it would have only cost about 70p.

So, based on the last few weeks, it might be worth thinking about getting your Euros before the referendum, especially if you're travelling soon afterwards, and especially if you expect us to vote to 'Leave'.

Of course, none of us know what will happen. This is my opinion, not personal advice.

Here's a little more information about our team:

Q: Qualifications Include

A: My degree in modern languages included a module on economics and personal finance, and that's how I got into financial planning.

Since then, I've become dual qualified as both a Certified Financial Planner and a Chartered Financial Planner, including the specialist qualifications in Tax & Trusts (G10) and Pensions (AF3/G60).

The full list is:

AF3 - Pensions (CII) (I did that to totally update my pension knowledge, as I had done G60 in 1994.)
K10 - Retirement Options (CII)
K20 - Pensions Investment Options (CII)
G20 - Personal Investment Planning (CII)
Chartered Financial Planner (CII)
ER1 - Equity Release (CII)
HR1 - Home Reversion Plans (CII)
G10 - Taxation and Trusts (CII)
CFP - Certified Financial Planner Licence (IFP)
H15 - Supervision and Sales (CII) 

In November 2016 I added the STEP (Society of Trust and Estate Practicioners) Certificate for Financial Services.

Q: Do your clients have anything in common with each other?

A: They are all lovely and there are a few similarities in their aims that I've noticed. 

Many of my clients want to do more than just meet their own needs. They also see themselves as custodians of their money for the next generation or for other beneficiaries. 

In other cases, their aim is to manage their wealth efficiently during their lifetime, with the aim of spending it all… but minimising tax on the way there.

Q: What type of work do you enjoy most?

A: I do get a real sense of satisfaction from the work with those clients who engage me to manage the needs of two generations of the same time. That can be 'just' a long-term and balanced investment strategy or it can be trust planning and estate planning to avoid paying too much Inheritance Tax.

Q: Where would you be right now if you weren't at work?

A: In the Lakes

Q: In the film of your life, who would play you?

A: In my head, it's Uma Thurman, but I expect they would approach 'Nursey' from Blackadder II.

Q: Curry or Hot Pot?

A: Agh, too difficult. Curry.

Q: Sherbert or Chocolate?

A: Chocolate

Q: Lawn or Flowers?

A: Lawn

Q: What are you most likely to do whilst being 'on hold'?

A: Infuriate my colleagues by opening conversations then cutting off their reply when my call is answered.