Get the basics right during Brexit

In the meantime, global economic growth is slowing and central banks are taking action to encourage economic activity. Last week the European Central Bank reduced deposit rates and reinstated its multi-billion euro asset buying programme, while the US Federal Reserve has lowered rates by 25 basis points for the second time this year.

In rapidly changing circumstances such as these it can be difficult to know the best course of action to preserve and grow your wealth.

We believe, however, that getting the basics in place can go a long way towards helping you navigate unpredictable times. Making sure your wealth sits on firm foundations could help preserve it when bad weather moves across markets, while also leaving you ready to seize opportunities when storm clouds dissipate.

Here are three key examples of what we mean.

1) spread the risks

It’s a well-worn truism of investments – and one of our investment principles – that you should diversify your portfolio. Making sure you own assets in different parts of the world, spread across different industries, and a mixture of shares, bonds and other assets is one of the most basic rules of investing.

But there’s more to diversification than investment portfolios. You should also consider how to reduce the risks inherent in wealth that’s overly concentrated in one place. For example, if your wealth is based on a property portfolio you’re at risk from forces that impact the property market.

Diversifying away from such areas doesn’t mean selling up. It’s often just a matter of leveraging your existing assets to spread your risk.

2) Make the most of your allowance

Political change in the UK can bring changes to the country’s tax system. These can be hard to plan for. What you can do, however, is make sure you’re making the most of the tax reliefs and allowances that are available right now.

Individual savings accounts (ISAs) and pensions are two examples of basic savings products available to people based in the UK that involve tax allowances, but there are more options that may be open to you based on your circumstances.