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

Also, if the markets are low and you take the money out, then buy into the market while it's low and wait for the rise....all you lose is transaction fees.

It's a pain but it will either correct in which case see above, or it won't and we'll have bigger things to worry about.

This was the problem with annuities, so glad we don't have to have them any more.

I'm the OP under a name change

Well I'm a delightful 30k down now. Rang my wealth management guy and he was reassuring , time IN the market blah blah and he talked me out of pulling it which I'd swung round to wanting to do.

Guess am just stuck in this mess

Take it out OP and buy a flat or house. Rent it out and you have an additional income and the flat or house will increase in capital over time.

OP, please stop stressing out.

The markets are volatile by nature and a few years ago we were enjoying rapid growth and unfortunately the other side of the coin is that there will be periods like the current one with big losses to bear.

As long as you have an emergency fund in cash that you can access and the money that you invested in stocks and shares is ok to remain invested for at least 5 years, you will be fine.

For context, I’ve been regularly investing in stocks and shares for the last 20 years. Believe me, 2008 was pretty rough with the recession but I held my nerve, remained invested and continued to invest every month throughout and it’s worked out really well in the long term.

My best advice is to stop checking the values. Hand on heart, I deliberately haven’t at all in the last few weeks as I don’t see the point. I know that if I just leave it all alone, in a few years it will work out great.

There’s a saying about the very best investors being those that invest in the stock market then go to live in a cave for 5/10/20 years to leave it alone, don’t try to time the market or panic about values etc and allow it to work its magic and it’s very true!

Oh I don't want to become an accidental landlord. Don't think I'd be very good and we considered buying property in the past and it's not for us. Thanks for the suggestion

@Summergarden thank you x 10. I know I know you're right. I'll get there I hope!

Bananabang
The PAPER VALUE of your portfolio has dropped
not the real value
its all just monopoly money until the day you have to or want to sell it.
Shares are only "worth" what you actually sell them for.

Take the example of my old fishmonger.
He put £10 on a 7 horse accumulator
Horse A = 10/1 = winner = £100 in the pot
Horse B = 5/1 = winner = £500 in the pot
Horse C = 10/1 = winner = £5,000 in the pot
Horse D = 5/1 = winner = £25,000 in the pot
Horse E = 10/1 = winner = £250,000 in the pot
Horse F = 5/1 = winner = £1,250,000 in the pot
Horse G = 10/1 = unplaced = £0 in the pot

How much did he lose ?

£10
(it was all over the local papers back in the 80's when it happened .... he was back at the bookies the next day)

The horse racing analogy doesn't work because you can't withdraw accumulator bets before the last leg, you can sell stocks any time.

But, certainly don't sell right now and buy a house, terrible advice.

I'm just leaving mine where it is but probably buying a few more units in funds.

Trying to time the market is a mug's game.

VanGogh
Its not a perfect analogy
but it is true that all he ever lost was £10 because the rest never actually existed.

All the paper gains and losses do not exist until the day the shares are sold

Thanks guys. I clearly need to get my head round the fact that these aren't real losses - and same for gains - until the time comes to withdraw it.

We are invested for 5 years, yes. That's the plan. Around 43% of our portfolio is stocks and shares and the remainder is ... err god, I should have paid attention! Funds. ISAs.

I'm gearing up to deleting the app but not there yet because I panic we will 'lose' 40k, 50k .. more. Jesus. And don't I need to know about that? What happens if it all bloody goes?

What happens if it all bloody goes?
It won't
because pretty much every company has a solid underlying value based on the cashflows it generates
and once all the frothing dies down, people who want the dividends from that cashflow will buy the shares

I'm so new to all this though that I can't help but panic. Because will it REALLY recover by - what is now - a 12k loss? And then make money? And if my fund managers are so good, why has it lost this in the first place?

Honestly if you feel this way, investing might not be for you. It won't "all go" as a PP said, but you'll frazzle your sanity watching it. Delete the app and ignore the whole thing except for annual checks, and leave it there, but consider not investing further since it seems you really don't have the risk appetite for fluctuations. Money you need/want to spend soon doesn't belong in the stock market unless you're a professional investor.

Around 43% of our portfolio is stocks and shares and the remainder is ... err god, I should have paid attention! Funds. ISAs.

You really do need to find out!

Most funds have shares in (the words "stocks" and "shares" are more or less synonymous, they mean the same thing - an equity stake in a company), but they might have bonds or even (less likely) commodities.

So you can't say you are invested in stocks, shares and funds, as if it were three things when it's probably just one asset class.

And an ISA isn't something you invest in, it's a type of account. Current account, savings account, individual savings account - that last one is an ISA. Then within it you will have the actual investment.
All an ISA does is provide a certain tax treatment and regime of charges.

In your shoes I would be asking the IFA for a breakdown of the types of investments you have and the risk profile.

I'm currently very glad that a large amount of my pension is in a 60% equity fund where the 40% is bonds. It's a decent balance I think.

I know exactly how you feel, but IIRC it was rather worse in the aftermath of 2008.

I was frankly panicking and wanting to sell everything (stock market) - dh said on the contrary, now is the time to buy.

Once it went even lower, he put more in.

Loath though I am to admit it, he was dead right.

This is the 3rd stock market crash I’ve seen - the others were worse than this is at the moment - but ultimately markets do rise again.

No no no no.

Don’t pull it.

Thanks all. Still terrified and nearly NEARLY pulled today. We are 32k down ish. It'll be worse tomorrow of course.

I read this thread to try and calm myself down

BananaBang

STOP LOOKING
Its not REAL losses

I have a significant amount invested. Our advisor has been sending regular emails and the moment it's staying put.

Paper losses. I got my statement two days ago: lost 10k. The market will recover and in the meantime I will buy units at a lower price.

OP if you have not already done so then I suggest you buy and read a Which guide to investment for beginners or similar. You need to know the basics and not put blind trust in "wealth managers"
You say in your Op that you can't afford to lose this money -do you really mean that?
I really hope that your financial planning is more sensible than you are suggesting. You should have income that meets your outgoings, have a decent amount of cash savings for emergencies, and be debt free before you invest 6 figure sums on the stock market.

Just ignore it. If you don’t need the money in thr next few years it will all swing back.

I've lost on my S&S ISA bit will leave it there.

I, could still put money in it but I think it's best not to,at the moment?

Any thoughts.

I can leave it long term

@chiara well, maybe it's more I don't want to lose it to be honest. We both work, mortgage very low, 30k in accessible savings so I'm not quite as daft as I probably come across!

This money is my inheritance. My parents used this wealth management company for years and years and they're good , it's not blind faith I have - I've had dealings with them myself for ages.

Just trying to calm down!

Oh and we have no debt bar the mortgage. I realise I sound like an idiot but I'm honestly not. I've just never invested in this way before.

Why on earth would you pull the money out at probably the worst time possible if you don't need it?
How long has it been invested?
Stock markets are volatile
Values go down as well as up.
Wait it out