Ups and downs on the stock market is a well-known dynamic in our world today. Sometimes, events happen that make the highs higher and lows lower. As you well know by now, the United Kingdom voted in June to leave the European Union. This decision immediately had an impact on the markets and the financial outlook of entire countries,especially the United Kingdom countries of England, Scotland, Wales, and Northern Ireland. Here in the United States, Wall Street, already shaky, became even more volatile.
So, how does Brexit (along with the numerous terrorist attacks, especially in Europe) impact your estate planning or even your financial strategy?
When events like these are the big news headliners, people tend to question if their planning is adequate. Often, some experts suggest decisions that are dramatic, and maybe even over-reactions. However, it is important that we make rational, rather than emotional decisions with our money. We often regret overreacting to most situations in life, and this is probably no different. Even now, the Dow Jones Industrial is more than 600 points above its level on June 22.
What Will Brexit Do to the Global Economy?
There is no real way of knowing how Brexit will impact the global economy. Even more than a month later, very little progress has been made to implement the Brexit vote. All we have right now is a lot of uncertainty. It is possible that it will lead into a recession, first in the UK and then spread over Europe. That, however, will happen possibly as far out as two years.
What Will Brexit Do to Your Estate Plan?
In a word, nothing. Your estate plan is just as valid today as it ever has been, and it will probably be so in two years. That does not take away the urgency of developing and maintaining an estate plan. If you do not have an estate plan, you still urgently need to develop one, and if you have one, you must still make sure that it remains up-to-date with your family situation and your goals.