When the markets closed at the end of last week, it quickly became clear that energy, resources and financial companies have led the Australian share market lower on renewed fears about the economic implications of the UK Brexit vote. The benchmark S&P/ASX 200 index fell 0.58 per cent, with most sectors closing in red territory following falls in the US, Germany, France and most of Asia overnight. Ultimately, what this means is that the Australian market is reacting more strongly to international influences than it currently is to our own political situation. The Australian dollar has also finished lower, dropping to US74.42.

What does this mean for you?

The past few weeks of uncertainty in the markets means it's all the more reason to have a risk management strategy in place for your investments. If you're not having to draw on your investments to support your income, you can afford to ride out the volatility and hold your position. But if you're relying on your investments for an income stream, we recommend that you minimise your risk by having at least 5 years worth of income payments stored in defensive assets such as cash, term deposits and bonds. This will give you time to ride out the volatility before having to sell anything to fund your income.

We've ticked over into the new financial year, which means it's a perfect time to review your business or financial goals for the next 12 months, building on the previous 12 months just gone. If you need help or direction with this, please don't hesitate to contact us. If you would like to review your current structures, contact us today here or call us on 5482 2855.