Old ISA - keep it or move it?

[zax]

I have an old ISA which I've all but forgotten about, haven't paid anything in there for around 6 years. Got my annual statement last week which proudly announced it's lost around £4k in value over the past 12 months. Excellent...

I've no intention of spending the money any time soon, so would leave it alone but a similar sum I have in a normal bank savings account managed to make me money over the same period. Time to get proactive, take the money out of this "managed fund" and stick it somewhere else for a while?

[pjac67]

Go to an IFA and if not already in a 'fund supermarket' ie Fidelity FN, Selestai, Co-Funds etc then re-register (if eligible) and switch into chosen funds for 0.25% charge (if appropriate....).

If you have other ISA's/unit trusts or big pension of sufficient size may be worth considering a more efficient wrap service eg Ascentric.

HTH. Paul.

[muley]

If you don't need the money, I'd suggest leaving it there. Sure it lost money over the last 12 months, but why sell at the bottom (I hope this is the bottom!) of the market?. You only 'lose' money if you sell it ..

[illmonkey]

Excuse my stupidness gov'nor. But how does an ISA loose money? Is this different to the ISA i'm saving money into?

[Exige77]

There is a "Proper ISA" and a "Mini Cash ISA".

Proper ISA is invested on stock market. Market goes down the value of your ISA goes down.

Mini cash ISA is like putting your money in teh building society. Always goes up. Interest is added every year.

Ex77

[7 Sevens]

As it is at least a six year old product I would compare and then consider the rates you have in this and a leading product today. Move the money if a new product rate is better.

[Fiddlemesticks]

Well if you leave you crystallise your losses. If it has lost 4k it can make 4k. But it depends if it is a growth area and can go up in your impression.

At the moment you might have to question exactly where else may make you your money back.

The general public have always bought high and sold low and thats their problem. Flip it round and perhaps if its not important (having left it perhaps you may have a large amount of apathy to this investment)just leave it there for a long time yet to regain.

Will the market get any lower? Not sure but keeping it where it is may well be the path to regaining the profits.

If you do want to move it, rather than moving it to a different fund provider, maybe just move it to a different fund within the provider, thereby just paying the bid/offer spread.

I was an IFA in the UK till last year after 10 years in the role so hopefully my info might be taken in the spirit intended.

[benjdr]

Exige77 said:

Mini cash ISA is like putting your money in teh building society. Always goes up. Interest is added every year.

Not exactly. ISAs are tax exempt.

[illmonkey]

Exige77 said:

There is a "Proper ISA" and a "Mini Cash ISA".

Proper ISA is invested on stock market. Market goes down the value of your ISA goes down.

Mini cash ISA is like putting your money in teh building society. Always goes up. Interest is added every year.

Ex77

Thought there must be 2 types. Thanks.

[zax]

Thanks for the advice folks. As you may suspect, I've been quite lazy about this one and pretty much forgotten it. As suggested I'll do a little research.

[LeoSayer]

The question you need to ask yourself is...will this fund do better than all other funds that I could buy? If not then switch to something else. As alluded to before, stay in the market otherwise you will crystallise your losses.