Here's why you don't need to worry about Brexit.
Let's start with an analogy.
In the children's story, Chicken Little gets hit on the head by an acorn and thinks the sky is falling. He immediately runs to warn the King. Along the way, he tells Foxy Loxy who claims to know exactly where the king is. Foxy Loxy leads Chicken Little and his friends back to his fox den and eats them.
Foxy Loxy is Wall Street and the media.
Chicken Little is the individual investor.
The acorn (this time) is Brexit.
The fox feeds on people's fears. Wall St. and the media eat (profit) through ad sales and commissions. If you're fearful, you will tune in more and trade more, thereby feeding the fox. It's in THEIR best interest to convince you the sky is falling… even though they know it's just an acorn.
Acorns fall all the time. Here's some big ones from the last 20 years:
2015 - First Fed rate hike in 10 years
2013 - Government shutdown
2010 - Greek debt crisis
2007 - Housing bubble bursts
2001 - September 11 terrorist attacks
2000 - Dot Com bubble bursts
Yet despite all the falling acorns, if you had invested $10,000 in June 1996 in an S&P 500 index fund (and reinvested the dividends), today you would have $47,381. That's right, you would have quadrupled your money! But the fox will never tell you that.
Yes, Brexit will affect the world economy and your short-term portfolio returns, but no more than any of the other acorns that fall year-in and year-out.
Don't listen to the fox.
It's just an acorn.