Your Retirement Plan and Brexit

 

WHAT TO DO WITH YOUR RETIREMENT PLAN NOW –

RETIREMENT FUNDS On balance, about half of most Americans’ retirement funds are invested in stocks, and they are expected to take a beating on the worry that the British decision to leave the EU will destabilize the global economy and torpedo corporate profits. Related: Sterling Hits Lowest in Three Decades, Yen Surges as Brexit Stuns Markets Early Friday, equity index futures were pointing to declines in excess of 3 percent for major U.S. benchmark indexes like the Standard & Poor’s 500 .SPX and Nasdaq Composite.IXIC. While Treasury bonds are rallying on the result, courtesy of their status as a global safe-haven asset, those price gains mean that already meager bond yields are going even lower. This diminishes their ability to deliver substantial income for investors and savers.

Dean Burns or Reuters effectively summarizes how Brexit may play upon your retirement in his June 24th article.

Dean falls short of making a recommendation however, and I’d like to expand on his three key points:
1. Retirement Fund are about half in stocks, and they will take a beating, so your retirement account will as well. Treasury bonds are rallying however and are considered a saf(er) haven for your funds.
2.Mortgage rates will go down. This means the housing market will get a medium term surge as well refinancing.
3. The Dollar. The plummeting of the British pound will cause trouble for US manufactures that export, so watch the economy closely. This means more people out of jobs and a generally weaker economy. You may want to, however, schedule that trip to e England you have been putting off.

 

Happy in Retirement wiht Real Esate!

Happy in Retirement with  Real Estate!

What should you do about your retirement plan?

1. Evaluate it. Shift some money into hard assets, we prefer real estate.
2. Consider this just one more wake up call that you have to be in charge of your plan. Get actively involved in it.
3. Get Inspired. Peruse the artifices here on retirement next. Perhaps get motivated by some of the real estate ideas.
4. Act. Don’t re-act.

 

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