Help please! Should I pull my money?

[AppleBang]

We have 375k invested with a wealth management company. A good one I hasten to add! Due to what's been happening, in the 6 weeks we've had the moment invested, we've seen it dip by 10k. I expect that to be more tomorrow.

I'm personally not in the slightest bit bothered about corona virus but it appears the rest of the financial world is so... what would you do? Cut losses now and pull out the money? Or ride it out , potentially losing a lot more

It is not money I can afford to lose

Please tell me what you'd do. Thank you

"And if my fund managers are so good, why has it lost this in the first place? "

Because markets drop . And they rise . This too will pass.

Watch this , you will relax .

m.youtube.com/watch?feature=youtu.be&v=peuondcG648

I don’t think I’m suited for any kind of investing tbh!

Sit tight, as said upthread it's the dividends which are the best accumulators for growth. Take the long term view, think of it as a 5-10 year investment at least. You only cash in the loss when you sell, otherwise it's a paper loss

I would question whether, if your attitiude to risk is genuinely low, you should have been advised to invest in a medium or long term product. But other than that I agree with everyone else. Markets are low because of the reaction to corona virus. Markets hate uncertainty. You need to ride it out and stop checking!

I literally haven’t even looked at my pension or ISA stuff since the end of last year. I know a ballpark value but no idea how much it’s dropped over the last few weeks.

@anonacatchat I'll watch those shortly- thank you very much. Still.. twitching slightly!

Stop looking .

I'm down 16% and I will be buying more when things level out . Just holding tight right now

Ps I do understand it seems extremely scary 🥰🥰🥰

@anonacatchat a quick question if you don't mind! So I'm down similar - or more - who knows anymore, gulp! - .. when the market starts to recover, will this at least jump back up to what you initially invested do you think?

I don't have a crystal ball and I'm not stupid or qualified enough to try and predict the future BUT if you heed the data set we have ( discussed on the video) it looks like it probably will and based on history should theoretically grow BUT as you will hear on the video will it take a year , two , four? Who knows !

£10k out of £375k is 2.6%.

The average annual FTSE return is something like 4.9% over inflation.

Put the app down and leave your advisers to deal with it then look at it again in 12 months. If you withdrew it now and put it into a "safe" investment like a bank you'd take a few years to even get back on an even footing, maybe you even never when inflation is higher than interest rates

If the markets crash so much that you lose everything then we are all in the shit and the price of shares will be the least of our worries!

I feel your pain though. I eventually got round to some pension and ISA admin about two weeks ago, only to see values falling days after I bought investment trusts! Oh well. I've still got money to invest and it has to go somewhere.....

I have to keep checking because I have to keep track on which pension has moved and which I need to chase up.

The asteroid impact earth doesn’t arrive until 2022. The brexit shit show and zombie plague 2020 make that less concerning with each and every passing day.

On the internet.

An investment advisor on a money podcast last week, stated
“It’s time in the market, not timing of the market”. It’s a statement I’ve heard before and very true.

Myself, DH and young adult DC all have S&S ISAs that we invest in monthly - our money comes from earnings, the kids‘ from an inheritance, but also invested monthly. DS is a bit jittery, but I have pointed out that by investing monthly, we are smoothing out the peaks and troughs and the markets will eventually rise again.

DH and I have been in the markets for 20+ yrs so been there, done that regarding ups and downs. DH has some shares that peaked a couple of years ago, then dropped quite a bit, but he still has made a lot of money on them, and we don’t need it yet, so will sit tight.

Hi
I'm in a blind panic!
I set up an endowment 25 years ago (plan is due to mature on June 8th 2020) all was going fine until the corona virus, with my plan falling from £26k to £23k in a matter of weeks and it's still falling. Should I get out?

It is very panic-inducing, especially when you aren't a big stock market person. Does your endowment have to end in June? Because I think it's unlikely to perk up much by then (am not remotely an expert, but this was an overdue fall as I understand). Can you cash it in without penalties, though? I would suggest you check with the providers if you haven't about what the options are - if you can leave it with them after June for another 1-2 years maybe do so, otherwise if you can cash it in now I think I would do so. Really depends what your options are.

DCC63
A chunk of your endowment will be the terminal bonus.
If you cash in now you lose the lot.
Sit tight and see how the stock market is by the time the sun has come out and Covid is slipping into history.

We’ve just this morning had our yearly review with our financial adviser. Yes, there has been a big dip in the markets over the last week but he said he fully expects that to be short lived. Same happened with swine flu/bird flu/SARS etc. Our investments are medium term so looking at 5 years plus - plenty of time for change/recovery.

Sorry @applebang I should have RTFT! I see your FA has already given you a comprehensive response.

I can cash in without penalties. Not sure if I can leave it in for longer but will ask my provider as that might be a better option. The endowment was 'sold' to me by my mortgage provider way back in 1995 when I was buying my first house. I sold the house later down the line but kept on the endowment as a 'pension'!!! I've paid in about £16k and in December 2019 it was worth about £25.7k, as of close of business yesterday, it's worth 23 and plummeting!

You shouldn't be invested in stocks and shares if you are so worried. Look at historical gains and you are better invested where you are BUT they are subject to shocks such as this. Far better though than a bank account

I wasn't worried until now. Sod's law that the market starts to crash 3 months before my policy is due to mature when I've been invested for 25 years!

Marie
Lots of us were sold endowments in the 80's and 90's as sure fire bets.
And when the 25 year product reaches maturity its a bit scary
BUT
June is still a lifetime away as far as the stock market is concerned.

DCC63
DO NOT cash in early.
You will lose out as the terminal bonus only kicks in on the final day.

Who is your policy with and how much do you pay each month and I'll crunch a few numbers for you

The policy was taken out with Halifax Financial Services, now part of Scottish Widows (I think)

I pay £50 per month.

Thank you by the way :)

DCC
They really do not want to say publicly but I'd reckon about 20% of your bonus pot will crystallise on the last day
so sit tight and ignore what the markets are doing
as your fund is based on 25 years of change
adviser.scottishwidows.co.uk/assets/literature/docs/43982.pdf

Thank you :)