Fixed payment investment half way through term
Discussion
Looking for some advice.
I started an investment 5 years ago. Its a 10 year thing. I pay in monthly. It was due to mature when I am 40 at which point I would probably re-invest in something else till I was 50 ish at which point it would be used as a pot to assist our early retirement.
Its never done well, I think at one point it was up about 10% but at the moment its down 25%.
At the end of each year its generally been worth a bit less than I have paid in.
I can cash it in any time, but as it stands now I lose obviously.
However my concern is that as time goes on over the next 5 years I am exposed even more so to erratic markets.
I don't need the money, but I sure don't want to risk losing say another 25%. Its not a small sum so I am starting to worry a little.
I cant reduce or stop the monthly payment and I cant do anything other than carry on as I am or close it and draw it all out.
WWYD!!??
I started an investment 5 years ago. Its a 10 year thing. I pay in monthly. It was due to mature when I am 40 at which point I would probably re-invest in something else till I was 50 ish at which point it would be used as a pot to assist our early retirement.
Its never done well, I think at one point it was up about 10% but at the moment its down 25%.
At the end of each year its generally been worth a bit less than I have paid in.
I can cash it in any time, but as it stands now I lose obviously.
However my concern is that as time goes on over the next 5 years I am exposed even more so to erratic markets.
I don't need the money, but I sure don't want to risk losing say another 25%. Its not a small sum so I am starting to worry a little.
I cant reduce or stop the monthly payment and I cant do anything other than carry on as I am or close it and draw it all out.
WWYD!!??
Still chugging along with this. Still doing cr@p.
I have looked into it and I can move the money into some other funds.
Currently have 4 funds
Aberdeen Emerging Mkts
AXA Fram UK Select Opps
BlackRock Emerging Markets
Schroder Recovery
Black rock is the big hitter at -15%.
The other 3 are all around -5%.
I was thinking of moving the BlackRock money but where too?
Anyone know about this stuff because I sure as heck don't! My IFA is useless!
I have looked into it and I can move the money into some other funds.
Currently have 4 funds
Aberdeen Emerging Mkts
AXA Fram UK Select Opps
BlackRock Emerging Markets
Schroder Recovery
Black rock is the big hitter at -15%.
The other 3 are all around -5%.
I was thinking of moving the BlackRock money but where too?
Anyone know about this stuff because I sure as heck don't! My IFA is useless!
There's nothing wrong with the funds you've got, but you're heavily exposed to emerging mrkets which have had a pretty poor time over the last couple of years (as all global markets have).
I also have emerging market funds showing a loss, but I am hanging on to them because I beleive the area will rebound at some stage. I might be wrong though.
I'd be asking your IFA why they put you in those funds. It's quite an aggressive portfolio for a novice investor.
As to what you do really does depend on the individual. Everyone is in a different situation, and without knowing your full financial position you won't get a sensible answer on an internet forum.
As i said before, I'd be speaking to your IFA.
I also have emerging market funds showing a loss, but I am hanging on to them because I beleive the area will rebound at some stage. I might be wrong though.
I'd be asking your IFA why they put you in those funds. It's quite an aggressive portfolio for a novice investor.
As to what you do really does depend on the individual. Everyone is in a different situation, and without knowing your full financial position you won't get a sensible answer on an internet forum.
As i said before, I'd be speaking to your IFA.
I think my only worry now is as time goes on the sum invested starts to rack up and I just worry that I am in the wrong funds.
IFA is literally useless but my wife does not want to change as we would have to pay fees etc and she is very averse to fees given the service charges on our pensions etc.
I would like to get rid of the black rock and put it into something more stable as we have around 5 years left to run so hope to make some of those losses back.
IFA is literally useless but my wife does not want to change as we would have to pay fees etc and she is very averse to fees given the service charges on our pensions etc.
I would like to get rid of the black rock and put it into something more stable as we have around 5 years left to run so hope to make some of those losses back.
red_slr said:
I think my only worry now is as time goes on the sum invested starts to rack up and I just worry that I am in the wrong funds.
IFA is literally useless but my wife does not want to change as we would have to pay fees etc and she is very averse to fees given the service charges on our pensions etc.
I would like to get rid of the black rock and put it into something more stable as we have around 5 years left to run so hope to make some of those losses back.
Remember that every extra payment that goes in buys you extra units at a discounted price, so you are benefitting from the current lower price.IFA is literally useless but my wife does not want to change as we would have to pay fees etc and she is very averse to fees given the service charges on our pensions etc.
I would like to get rid of the black rock and put it into something more stable as we have around 5 years left to run so hope to make some of those losses back.
Also, why do you want to sell BlackRock and not Aberdeen? They are both emerging markets funds. Has the BlackRock fundf allen by more? If that's the reaosn then you're basing your investment decision purely on past performance which is never a good idea.
Think if it this way, in very crude terms tha aim of investing is to buy low and sell high. At the moment you are buying low, and hopefully the price will be higher when you want to sell.
There are no guarantees, but the BlakcRock fund could actually offer the most opportunity if it has fallen by the largest amounnt. From an asset allocation perpective, you should top up the areas that have fallen the most and skim profits form any areas that have risen. What you are talking about doing is the opposite!
CaptainSensib1e said:
red_slr said:
I think my only worry now is as time goes on the sum invested starts to rack up and I just worry that I am in the wrong funds.
IFA is literally useless but my wife does not want to change as we would have to pay fees etc and she is very averse to fees given the service charges on our pensions etc.
I would like to get rid of the black rock and put it into something more stable as we have around 5 years left to run so hope to make some of those losses back.
Remember that every extra payment that goes in buys you extra units at a discounted price, so you are benefitting from the current lower price.IFA is literally useless but my wife does not want to change as we would have to pay fees etc and she is very averse to fees given the service charges on our pensions etc.
I would like to get rid of the black rock and put it into something more stable as we have around 5 years left to run so hope to make some of those losses back.
Also, why do you want to sell BlackRock and not Aberdeen? They are both emerging markets funds. Has the BlackRock fundf allen by more? If that's the reaosn then you're basing your investment decision purely on past performance which is never a good idea.
Think if it this way, in very crude terms tha aim of investing is to buy low and sell high. At the moment you are buying low, and hopefully the price will be higher when you want to sell.
There are no guarantees, but the BlakcRock fund could actually offer the most opportunity if it has fallen by the largest amounnt. From an asset allocation perpective, you should top up the areas that have fallen the most and skim profits form any areas that have risen. What you are talking about doing is the opposite!
You can get a summary of your funds and a rating at http://www.morningstar.co.uk
Your IFA needs to advise you. If he's useless then you need to change. Going without professional advice will cost you money in the long term.
There are all sorts of considerations that should be being taken into account:
- what risk are you comfortable with
- Are the funds in an ISA (if not, why not)
- If this is retirement planning why aren't you investing in a pension? Tax relief on contributions is still there (partially).
When you sit down with an IFA there is a form to fill in etc. People on an internet forum can't hope to have the same level of knowledge about your circumstances.
Can you stop paying into these funds, leave them open and pay into something that is doing better in this economic climate (fundsmith/woodford) are the most popular. Interestingly their general funds are doing well but their emerging market funds much less so.
Your IFA needs to advise you. If he's useless then you need to change. Going without professional advice will cost you money in the long term.
There are all sorts of considerations that should be being taken into account:
- what risk are you comfortable with
- Are the funds in an ISA (if not, why not)
- If this is retirement planning why aren't you investing in a pension? Tax relief on contributions is still there (partially).
When you sit down with an IFA there is a form to fill in etc. People on an internet forum can't hope to have the same level of knowledge about your circumstances.
Can you stop paying into these funds, leave them open and pay into something that is doing better in this economic climate (fundsmith/woodford) are the most popular. Interestingly their general funds are doing well but their emerging market funds much less so.
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