Don’t Hit the Brexit Stock Market Panic Button!

Published on July 5, 2016

The vote by the populace of the United Kingdom to exit the European Union had world markets all atwitter immediately afterwards. What will happen to world currencies? What about people’s retirement plans?

An article in the New York Times last week gave smart advice to investors about the stock market, where many people have been putting money away for their retirement. The author’s response to the Brexit anxiety: don’t do anything. This is especially true for investors whose portfolios are heavy into stocks, which are long-term investment vehicles (he suggests riding it out).

That said, self-directed investors are less likely to be exposed to the market volatility that those in stocks and bonds are feeling now, and are likely to feel throughout the shakeup and transition that Brexit will bring. This is because, rather than relying solely on the restricted menu of stocks, bonds, and mutual funds allowed in typical plans, self-directed retirement plans may include different types of alternative assets. Even if the stock market is bouncing around or market volatility increases over the foreseeable future, a self-directed IRA can weather the storm of EU breakups, thanks to its diverse mix of assets.

Instead of succumbing to post-Brexit-vote panic and making a knee-jerk investment move right now, consider a retirement strategy that includes nontraditional investments—real estate (domestic or foreign), commodities, precious metals, hedge funds, loans, private placements, and lots more. Given the stress that investing in stocks inflicts on so many people (look at all the life savings that were lost in the Great Recession), you can step away from that panic button by including alternative assets you already know and understand in a self-directed IRA.

As the name implies, with self-direction you control your retirement plan by directing your portfolio and making your own investment decisions. The administrator (like Next Generation Trust Services) executes the transactions, holds the assets, and manages all the required paperwork and reporting. Our helpful white paper explains it all to you and our video series  walks you through various aspects of opening an account. Our professionals at Next Generation Trust Services are available to answer your questions about self-directed investments, help you open your account, and provide transaction support. Want to know more? Contact us at Info@NextGenerationTrust.com or 888.857.8058.