The SD-PFS*Ticker
Volume 7, Issue 2
June 2016
Dear Clients and Friends:

Brexit. We're hearing about it all the time, but do any of us really know what it is or how it might affect us? The following article should help most of us understand what's going on and why it matters to the global economy, and to US investors. And while we're thinking globally, we've also included a few tools, to help with summer travel plans. Maybe one of these links will be just what you need to improve your summer vacation! We're also happy to introduce you to the newest member of our team, David Brinkman, whose brief bio is included below.

We hope you'll find something useful in the information that follows. As always, please feel free to call us with any questions or comments at 412-261-3644.

Brexit -- UK, Will they Stay or Will They Go?
...  Beth D. Lynch, CFP®

Whether or not Britain will stay in the European Union (EU) will be decided in a referendum that is being held on June 23, 2016, hence the term Brexit - Will Britain Exit the EU?
What will this mean for the UK and for the other countries in the EU? 
Britain's issues with staying in the EU revolve around a few key topics including trade, investment, contributions to the EU budget, sovereignty and immigration. Immigration has heated up recently; Britain has wanted more control over who it allows into its country. This has been a huge issue for Britain for quite some time, but has escalated due to the terrorist attacks that occurred in Paris and Brussels.  Britain is also one of the 10 member states who pay more into the EU budget than they get in benefits/return; France and Germany pay the most. On the trading front, this could be tricky. Should the UK leave the EU, it would have to make its own trade agreements and would have to negotiate new agreements with other countries. This could be difficult, not to mention, take years to complete. 
No other country has left the EU, so Britain would be a first. Should Britain leave the EU, there is uncertainty as to how it would affect the economy and the financial markets. If capital flows decline and the British pound sterling weakens, it will make it more expensive to finance the UK's large current account deficit. Hence, this is why some economists believe that this exit could trigger a decline in the UK's GDP and result in a recession for the UK. 
If the UK does decide to leave the EU, it has two years to renegotiate all of its treaties and trade deals. This would not be a simple task. During this time, Britain would have to continue to abide by the EU treaties and the laws. Also in this interim time period, as the UK negotiates the withdrawal agreement and the terms of its relationship with the EU, they will not be able to take part in any decision-making that is taking place among the remaining 27 nations. Depending on how the negotiations go, it could actually take longer than two years before the UK is completely out of the EU.
No one knows what will happen, but if there is an exit vote, we expect short-term market volatility to increase while the dust settles. 
David Brinkman joins SDWMA
David joined SDWMA last month and has more than 10 years of experience in the financial services industry. He has advised high-net-worth individuals, families, foundations and not-for-profit organizations  on a broad list of topics including asset allocation, portfolio management, investment manager due diligence and strategic and financial planning. He will be working as an investment advisor primarily out of our Columbus, Ohio office and will be responsible for managing all aspects of his client relationships. David is a CFA ® charter holder, CERTIFIED FINANCIAL PLANNER TM practitioner, a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and the CFA Society of Columbus. He holds a B.S. in Accounting from the Max M. Fisher College of Business at The Ohio State University.
Charles Schwab Changes Statement Mailing Process
Starting with July statements delivered in August, Schwab will issue monthly statements only for accounts that have a qualifying transaction, such as a deposit or a withdrawal, within the reporting month.  All mailbox accounts will continue to receive quarterly statements as usual, regardless of their activity level.   This change will apply to eStatements, paper statements, and bundled statements.  Clients who receive bundled statements will only see balances on their bundled statement summary for accounts that have qualifying activity.  If you have any other questions please feel free to contact your advisor.

Don, Nancy, Beth, Dave, Derek, Karen, Nick, Stephanie, Theresa and Vicky

 Quotation Marks
"I travel not to go anywhere, but to go.
I travel for travel's
sake. The great
affair is to move."
... Robert Louis Stevenson
SD Toolbox
  Links to tools, calculators and web apps we like.

Articles of Interest
JP Morgan Market Bulletin (Brexit)

What You Need to Know About Money Market Reform
What We're Reading

I'm not usually interested in war-related stories, but this one was fascinating. It's the story of Navajo Marine recruits who created the only unbroken code in US military history. The author, Chester Nez, was one of only two surviving members of the original team of 29 at the time the book was written. His story details the hardship of growing up as a Navajo in US society and schools, and his work to help the US secure victory after the attack at Pearl Harbor.
Cyber Security Tip
 Cyber Security Tip
Is your mobile device protected? Say yes to passwords and fingerprint ID, but make sure your Bluetooth is not enabled by default. A hacker with special software can connect to your mobile device using the connection. When the hacker's software finds and connects to a Bluetooth-enabled cell phone, it can download contact information, phone numbers, calendars, photos, SIM-card details and more. If you prefer it enabled, change the connection password. Google "Bluesnarfing" for more information.