Where are we just now on the Brexit timeline?
What does this mean for our clients’ investment and pension portfolios?
Whatever happens, the impact on our clients’ portfolios will be extremely small.
Why is that?
The UK stock and bond markets only make up 5% of global markets. Therefore, only 5% of our portfolios are invested in the UK; the remaining 95% is invested all over the world, according to the proportion of global markets each country makes up.
What should you do?
Find out how much of your investments and pensions are invested in the UK.
There is no reliable way of predicting whether UK markets will go up or down in 2021. We don’t know how Brexit negotiations will conclude, what the ongoing impact of COVID-19 will be or what other unexpected events will occur in the months ahead.
In the absence of a crystal ball, the most sensible approach, which is supported by decades of academic research, is to invest in a globally diversified portfolio. That means holding around 5% in the UK.
If you aren’t sure how to find out how much you have invested in the UK, please get in touch as we are currently offering our Second Opinion Service free of charge. This service involves a sense-check of your existing investments and pensions to ensure they remain fit for purpose.
Matt Duncan is an Associate Director at Carbon. Contact him via email at firstname.lastname@example.org
The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.
This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action.
Tax and Estate Planning Services are not regulated by the Financial Conduct Authority.
We have offices in Edinburgh, Glasgow, Aberdeen, Perth and London. You can contact us at any of our offices, or by email.
Carbon Financial Partners Limited is authorised and regulated by the Financial Conduct Authority. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.
The Financial Conduct Authority does not regulate some forms of tax advice.
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