No one can predict what will happen in the world. And uncertainty is often death for financial investment and security. We can only speculate so far and sometimes great events happen without anyone predicting it, with no way to prepare. What we need to think about is how we, as ordinary people and business owners, can take measures to protect ourselves. No solution is perfect, but that doesn’t mean improvement is impossible.
The United Kingdom is considered one of the most important parts of the world. It’s a financial powerhouse, central to various economies. It bridges gaps between America and the Asian markets, takes in the Southern hemisphere’s trade and is home to several leading institutions.
Recently, the British voters participated in a referendum, where the majority of voters found in favour of leaving the European Union (EU). This became known as “Brexit”, short for “British exit”.
Within the EU, its members and their citizens are provided with a number of advantages. Primarily, it allows citizens of member countries to move and work freely in different countries who are part of the EU. The BBC highlights an important relation of EU to Britain.
“The EU is Britain’s biggest trading partner… EU funding is spent on supporting farmers, boosting jobs in the UK, redeveloping rundown areas, and grants for university research.”
Vox notes the economic fallout:
“the Leave vote is causing economic turmoil… the value of the British pound fell by 10 percent to $1.35, its lowest level against the dollar since 1985. Stock markets around the world fell in Friday trading.”
Despite being a British decision, the rest of the world still felt the repercussions. The question is how do we prevent such enormous events from destroying our investments and financial security.
How to protect ourselves
One of the best ways to reduce our concern is to focus on those areas we can reduce expenses. This is why we should shop around for the lowest in investment costs. Financial Finesse suggests some important thoughts.
We should never ignore fees and trading costs. Knowing what these are means we can look elsewhere and find better deals.
They also note that “Ongoing fees usually cost more in the long run than one-time upfront fees.” They also suggest considering discount brokers “if you’re just looking for help putting together your portfolio. They can often help you select low cost investments like index funds without additional fees.”
This gives us cover if we need to focus on things like property finance or other forms of loans, if the time comes. We will have enough stability to be able to negotiate, even if the market is chaotic.
We should also consider ways to protect our retirement. According to US News, this is similar to other forms of protection. The only major difference is that retirement tends to work differently, in some small ways we might not consider. We should speak with financial advisors before we make any sudden changes.
(Image credit: moerschy / Pixabay)