Financial Planning: Post-Brexit: How planning strategies for advisors must evolve
An article written by Jefferson National’s CEO Mitch Caplan was recently published by Financial Planning. The article focuses on Brexit’s impact on the financial market and why advisors must evolve their planning strategies in order to better address volatility.
According to Mr. Caplan, the UK's Brexit vote and ensuing market volatility highlights the need for advisor to adopt and evolve their strategies. He goes on to highlight the importance of protecting clients’ portfolios from dramatic swings while preserving upside potential.
Citing the results of Jefferson National’s second annual Advisor Authority study conducted by Harris Poll, Mr. Caplan outlines the causes of volatility and details the most popular solutions, including alternative mutual funds and ETFs, long-only alternatives, and defined outcome solutions.
Brexit is an extreme example of a volatility-inducing event, and global economies are still trying to find steady ground. While volatility can be managed through asset management and asset selection tactics, in order to truly differentiate and distinguish themselves, advisors need to begin and end with true goals-based planning, combined with comprehensive understanding, management and acceptance of risk.