The past couple of years have seen significant political volatility and economic uncertainty. With another general election looming, and the potential for significant taxation changes on the horizon, it can be tempting to hold off from making any significant financial decisions.
Here we give three tips on how to approach a general election from an investment perspective.
- When any period of volatility is likely, it’s advisable to ensure you have enough cash available in your ‘emergency fund’. This is particularly important if you are in or approaching retirement and have a need to draw on your assets to meet income needs.
- Knee jerk reactions are often unhelpful and disinvesting will often result in you losing out in the long term. Investing in the stock market should always be viewed as a long term strategy. Whilst riding out periods of volatility can be uncomfortable, being prepared to do just that may well deliver better overall gains over the course of your life.
- With the polls proving to be unreliable at best, predicting the outcome of the election is virtually impossible. In this time of instability, the benefit of having a well-diversified portfolio in smoothing your investment experience is accentuated.
Regardless of the outcome of the election, it’s likely that there will be changes ahead. Consulting a financial planner will help to ensure that any potential negative impact of such changes on you and your family are minimised.
For more information or to consult one of our Chartered Financial Planners, please get in touch.