By Jay Forte, Contributing Reporter
RIO DE JANEIRO, BRAZIL – For most expatriates, Brexit, the UK’s vote to leave the European Union, was an unwelcome shock with potential consequences for their financial planning. The aftermath saw the FTSE100 fall sharply and rebound to just under 6900 points, just short of its record level in 2015.
More concerning, was the fall of the pound against the dollar (1.49 to 1.30) and against the Brazilian real (5.00 to 4.20), between June 23rd and September 24th. Expats earning in pounds and foreign retirees with savings denominated in pounds will surely be feeling the impact, enhanced by high inflation in Brazil.
Amit advises clients to carry out a financial review to balance portfolio risk, “We offer a structured approach to identify currency and asset diversification opportunities and to reduce headline and hidden costs within your portfolio. It all makes a difference during challenging times.”
Article 50, the exit clause, is likely to be triggered in 2017 hence the ongoing speculation about the terms of departure; a hard or soft Brexit? If there is one thing which financial markets do not like, it’s uncertainty, so expect continued volatility until clearer terms have been defined.
The UK Treasury indicated that property prices would fall by more than ten percent over the next two years. Amit and his team view this as a long-term opportunity for investors worldwide, “With a weaker pound, lower property prices and a low interest environment in the UK, the market has become more accessible and we can help UK non-residents obtain low cost finance and facilitate a purchase.”
Find out more by watching the Ipanema Wealth video on advising British expatriates.
Disclaimer: Ipanema Wealth provides an advisory service and does not engage in capital markets or the selection of financial instruments. For more information, please submit a specific enquiry via their website here.
* This is a Sponsored article by Ipanema Wealth.