The cost of Freedom…

A lot of bullshit has been talked over the last week or so about the costs of Brexit in terms of collapsing stock markets and the falling value of the pound, so I thought I’d dig into it a little.

I started with my own pocket. I don’t have a pension because I worked for myself before I retired so my pension comes from investments that I made over the years in PEPs and ISAs, and unit trusts that I invested in. There’s also a pot of money I made when I downsized and moved to a cheaper area of the UK. I think that makes me a pretty good arbiter of whether I’m better or worse off after Thursday’s vote.

On paper, I’m about £6,000 worse off on my portfolio since last Wednesday night, but interestingly I’m about where I was the same time the previous week. In fact I was worse off on paper when dear old Gordon gave us the financial crisis. So in terms of share values, Brexit has cost me bugger. In any case it’s a paper loss. If I don’t sell the shares, then I’ve still got them and not the cash. Having held them for donkey’s years, I’m not about to cash in just yet.

Of course the big holiday I’m taking next year in South Africa just got more expensive because the pound has dropped a bit. Except that the Rand has jumped about quite a bit too, so if we’re trying to guess whether Brexit has cost me more on that one, it’s still anybody’s guess.

And if you look at the pound against the Euro, it’s down to around 1.23 today. However, I found an old exchange receipt from a previous holiday in the back of the drawer and, guess what? 1.24 to the pound! No big drop – more like big deal!

The worse thing that happened to me was when interest rates plummeted. When I retired 7% was easily achievable on 1 year fixed term. Today it’s around 1.6% so my income dropped accordingly. Even after Brexit I should still be able to get something around that so I’m not panicking.

All in all, I think UKIP summed it all up nicely. “It was a very British apocolypse – it was all over by teatime!”

Emergency budget next week then, Gideon?…


10 responses to “The cost of Freedom…

  1. I worked in Europe 2009. The exchange rate approached 1:1 as I was paid in the UK it was like getting a 25% pay cut.

  2. One interesting thing is the language being used by the media and commentators of a “crisis”, “turmoil”, “we have to make the best of it” etc, even though the majority of the British public want to celebrate it. It just goes to show how much of the media is controlled by those who wanted to Remain, they cannot believe that the people have happily and willingly defied them.

  3. I was in the pub on Friday lunchtime celebrating. then again during the afternoon. Also raised a few glasses yesterday with like minded Brexit voters. I actually felt elated on Friday on hearing the excellent news.

  4. Strangely now there is talk of cheaper mortgages and a lower base rate, yes from 0.5%. Now I seem to remember not long ago Carney and Osborne warning if we voted to leave mortgages would rise along with interest rates. What happened there then as if I couldn’t guess?

  5. Loadsa support for the petition – thank you all.
    Still willing to bet it never sees the light of day. Democracy in action or what?

  6. Kath Gillon

    I notice Sturgeon is already saying the Scottish parliament will block the Brexit who does that woman think she is. i don’t care what Scotland voted we didn’t get a say in their bloody referendum, Seems to me as usual it’s her wanting her cake and bloody eating it. So the empty threats continue.

    • I do believe Kath, that she sees herself as a latter day Mary Queen of Scots. No doubt in anticipation of losing her head, she’s already lost her marbles.

    • Kath, the best thing to do with Ms McSturgpiece is to give her what she really doesn’t want. Give her tax raising powers and an referendum in 6 months. It will be a win-win for England because if they vote remain (and they will coz the oil is so cheap) then her cause celebre is finished. If they vote to go, then we’ve binned the whining element and saved money. They will be truly independent because Belgium and Spain will block their accession to the EU. Wot’s not to like 🙂