Given the Brexit situation, should I invest in the UK? Should I buy GBP whilst they are low? Should I not invest in the UK for a few years?
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Investing, like most things worth doing, requires time, patience, discipline and mindful planning. It has nothing to do with reacting to the latest news, market movements or market timing. What you’re describing in your question is speculating or in other words chasing the prices and looking for short term opportunities.Many people confuse it with real investing and inevitably get burned. Investors don’t do that.
The process of investing starts with careful examination of reasons why we invest. This involves talking about the very fundamentals of investing and acknowledging the variables within and outside of our control. Once understood and accepted, it’s about discussing the purpose of investing and having the conversation about all the things you hope to achieve in the future. I mean, no one really wants to have money just for money sake.
Money is just a tool to fund all the fun and memorable moments in life, with people we love. The final part of the initial conversation is translating everything to time and dollar specific terms so the advice professional can start preparing a step by step plan to achieve it all. Once again, the plan mostly needs to address variables under our control. Not the market movements, the latest news or any other crisis du jour. They have very little or probably zero impact to your personal investment and financial plan, addressing your own life issues.
Most people sadly don’t follow these steps and many will disagree with them. Of course, the practical side of using money and investing isn’t being taught at school and patience and discipline have never been in fashion. Naturally, people get confused and distracted. What suffers in the long run is their personal wellbeing and their long term family wealth. I’d strongly suggest that you make an appointment with a few advice firms to have a variety of conversations. Not because I’m a financial planner and coach myself, but because it’s the right thing to do. Even a doctor won’t let you buy a medicine without recommending a proper medical investigation.
In summary, my view is that the question you’re asking is a wrong question. The worst thing any adviser can do is to answer it. The best thing they can do is ask you a better question – What wealth plan you currently have in place and are you on track with it so you can live a fulfilling life? A plan that will equip you with both investment strategy and a mindset helping you deal with noise like Brexit. It’s what a plan does, keeps you focused. The problem is that most people don’t have a plan and get caught in such noise. I sincerely wish you every success. Michal Bodi
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