# Arklife Pip Ssia



## pAnTs (4 Feb 2008)

Hi there I wondered whether the recent market uncertainty would have a big effect on my investement. I invested 50% in lo risk and 50% in high risk when I took out my SSIA. Although my SSIA has matured I am still paying 100.00euros a month into the investment fund. Do you think I should pull my money out and close this account or should I wait. I don't really have an urgent need for the cash so I could wait, how long should I leave it in there for?


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## ClubMan (4 Feb 2008)

Did you not have some investment timeframe in mind when you started/rolled over?

What charges apply on this product? Are they competitive?

Exactly what funds are you invested in and why?


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## pAnTs (4 Feb 2008)

well I was thinking 8 years originaly but Im wondering whether I should pull out now, Im in the 6 year of investing. The funds are equity based and the charges Im actually not sure about. What I was wondering was more about the markets I suppose


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## ClubMan (4 Feb 2008)

Yes - but *what *funds and why did you choose them?


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## pAnTs (4 Feb 2008)

sorry clubman Im not a financial person so I chose them because the financial advisor in AIB told me it could be a good investment. I don't understand what you mean by what funds, they are 50% lo risk and 50% high risk equity based shares in Irish companies, is that what you mean? I didn't have any other reason to choose them other than when I was taking out my SSIA the choice was to be safe or take a risk for a possible better return. I took the risk and it paid off coz I got an extra 2000 on the 7500 I would have recieved had I just gone for a regular SSIA. Im a lay person so I don't have all the knowledge you have on financial matters, sorry


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## ClubMan (4 Feb 2008)

pAnTs said:


> sorry clubman Im not a financial person so I chose them because the financial advisor in AIB told me it could be a good investment.


Hmmmm ... not the best way to get advice...


> I don't understand what you mean by what funds, they are 50% lo risk and 50% high risk equity based shares in Irish companies, is that what you mean?


The money must be invested in some specific unit linked funds offered by _Ark_. Which ones?


> I didn't have any other reason to choose them other than when I was taking out my SSIA the choice was to be safe or take a risk for a possible better return. I took the risk and it paid off coz I got an extra 2000 on the 7500 I would have recieved had I just gone for a regular SSIA. Im a lay person so I don't have all the knowledge you have on financial matters, sorry


So you need to evaluate whether or not equity based investments for some or all of this money is the most appropriate option for you right now and for a specific investment timframe. If it is and this product offers the best (lowest) charges and most appropriate funds then stick with it. If not then you should consider moving the money elsewhere to other investments. 

There is no real magic to this stuff. Most of it is covered in this forum's key posts, the _AAM Guide to Savings & Investments_, the material on www.itsyourmoney.ie etc. But it does take some effort and reading to get up to speed on the basics.

Perhaps you need to talk to a truly independent financial advisor (authorised advisor or a good multi-agency intermediary and not the same or another tied agent) to do a comprehensive fact find and financial review for you?


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## pAnTs (13 Feb 2008)

ah well you see there is magic to it if you do not work in that area or have not studied it. I though the answer would more be like well yes the share prices have gone down but we expect them to recover or no they haven't gone down, thanks, I know it's my fault that I don't get all this stuff but it's a bit of a minefield!


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## pAnTs (5 Mar 2008)

Hiya Clubman I found the form that I wa given on opening this account and the funds are as follows:

AIB Managed fund series 2 - 50%
AIB Multi-track fund - 50%

Allocation rate 97%

I contribute 100 euros a month. 





ClubMan said:


> Yes - but *what *funds and why did you choose them?


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## ClubMan (5 Mar 2008)

Apart from the 3% loss on each contribution due to the allocation rate what other charges apply? For example is there a bod-offer spread (often up to 5%) and other per contribution charges? What is the annual management fee?


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## pAnTs (5 Mar 2008)

an entry charge of 3% will be deducted from contribution before purchasing units

No exit charges

a fund charge of 1.5%


the cost of buy, selling and maintaining the investment are borne by the fund itself

23% deducted on profit of investment at the end of 5 years (which was last year, Im still paying 100 per month in)

thats all it sayes for taxes and charges and it sayes you should stay in for 7-8 years at least.


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## ClubMan (5 Mar 2008)

You can probably get similar funds with charges of 0% on each contribution and an annual management fee of c. 1%. The charges are not totally excessive but they're not the cheapest either. If it was me then I would probably be looking elsewhere for a better deal on charges. And then I would choose funds which suited my specific needs and investment timeframe (e.g. high equity content and risk/reward for long term investments etc.).


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## pAnTs (5 Mar 2008)

oh ok will have a look 'round maybe, but in relation to the original post of "I wondered whether the recent market uncertainty would have a big effect on my investement" would you be able to guage from this information? 

I found this on the net so I suspect my shares have gone down 

AIB Multi Track Fund


Invests in widely diversified portfolio, which spans all major world stockmarkets and also provides exposure to Eurozone bonds.
The fund holds a portfolio of securities that provides exposure to more than 1700 companies.
Open-ended fund - however, we strongly recommend that you view this as an investment for a minimum period of 5 to 7 years.
Managed by Hibernian Investment Managers.

AIB Managed Fund Series 2



Designed to invest in a carefully monitored portfolio of international shares, fixed interest securities, properties and cash deposits.
Profit through capital growth potential and reinvested income
Open-ended fund - however, we strongly recommend that you view this as an investment for a minimum period of 5 to 7 years.
Managed by Hibernian Investment Managers.


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## ClubMan (5 Mar 2008)

pAnTs said:


> "I wondered whether the recent market uncertainty would have a big effect on my investement"


Well - there's a simple way to judge - get the current value of your investment and compare it to what you paid in! Such market fluctuations/volatility along the way are to be expected and are part and parcel of (ideally medium to long term) investing. If you panic every time this happens then you may not be matching your investments to your needs/preferences accurately enough.


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## pAnTs (5 Mar 2008)

ye I suppose, how are the markets doing now?


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## ClubMan (5 Mar 2008)

Check the unit prices of your specific funds to find out.


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## HappyGillmor (5 Mar 2008)

absolutely definately keep contributing. then go to someone who knows something about funds, decide how long you want to keep saving for and make a change to the funds if its long term. 

Contributing now is buying in cheap. markets will recover. a good qfa will be able to advise you.


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## Brenbo (6 Mar 2008)

If you set-up AIB internet banking assuming your accounts are with AIB.
You can monitor the value of your Ark Life investment. It is updated daily.

I have Ark Life PIP SSIA (Global Fund) and it has taken quiet a hit recently.
Down approx four grand on what was twenty five grand not so long ago.

Like yourself I was not so aware of costs associated with the investment when taken out the product initially plus it was close to the deadline. Learn a lot of this forum since.

However Quinn funds seem to be the order of the day in term of maintenance and contribution costs from reading this forum.


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## pAnTs (6 Mar 2008)

I tried the other day to set it up with internet banking but I couldn't, did you ring them or do it online? That would solve all my problems coz I could monitor it myself. I can't believe by the way that you've lost 4 grand!!!! by the sounds of it though you should get it back if you stick with it. Did you get a bit of a fright when you saw??


ps: just tried it online again and it keeps saying "not available" when I add the account under the Arklife section


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## philips (6 Mar 2008)

As far as I know you need to ring first to register the account and it appears in your online account some days later.


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## Brenbo (7 Mar 2008)

Philips is probably right best to call them probably. 
I think I did it in the branch. Been awhile now.

As for the funds drop in value it was not that much of a shock as I was watching the value regularly online. However it looks like we're not at the bottom of the trough yet with Asia’s markets slipping again this morning and oil still raising with the fall in the dollar. 

Suppose this is the risk in equity based investment.


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## pAnTs (7 Mar 2008)

ye I think I got the internet banking thing sorted, should be up by Monday so then I will be able to watch it myself. 

I have no real need for the money so I can leave it in there but it sounds like they have taken a big hit. Im not as worried though after hearing that people think that the markets will recover and at least now the shares are cheap.

I actually have another question though, how often do they buy the shares? is it once a month, everytime that you pay your monthly istallment?


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## pAnTs (9 Mar 2008)

well Im live on 24hour banking and my shares have indeed gone down a lot  I'll leave them there but I hope they improve again. Can someone explain how often etc they buy the shares etc. Thanks


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## RS2K (11 Mar 2008)

If you buy units monthly they invest accordingly.

A couple of points on this:

1/. Contract isn't prohibitively expensive.
2/. Choice of funds is an issue between policyholder and AIB. They advised you.
3/. Timing. If you believe the funds will recover in time to coincide with your original savings timescale then do not encash now. In actual fact a market fall in those circumstances would be a monthly buying opportunity.
4/. If you want to be defensive, redirect all premiums into more secure funds. Leave the high risk funds invested, but without further premiums.
5/. Encashing after a paper loss only crystalises that paper loss into an actual one.


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## pAnTs (3 Dec 2008)

God we certainly weren't at the bottom of it!!! I set up my online banking but got rid of it coz it was too painful to watch. When people talk about the markets recovering do they just expect it to go back up to the prices they were at when they were at their peak or would they go up and beyond? I suppose who knows. Is the value on my fund based on the price ofmy shares as in if I was to sell all my shares I would receive what I see on internetbanking? Im a complete novice have patience! also what happens if compaines go under that I have shares in?


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## pAnTs (5 Jan 2009)

I just had another look and my shares are a huge amount down on the contributions paid in which doesn't even take into account the original ssia government contribution. I think Ive been paying in now 8 years so I may stop paying in and leave it sitting there, would anyone have any thoughts on this?
Thanks


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## Car Mad (7 Jan 2009)

pAnTs said:


> I just had another look and my shares are a huge amount down on the contributions paid in which doesn't even take into account the original ssia government contribution. I think Ive been paying in now 8 years so I may stop paying in and leave it sitting there, would anyone have any thoughts on this?
> Thanks


 
How much have you paid into your policy to date? Whats its value as of today?


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## pAnTs (7 Jan 2009)

Contributions Paid to Date Excluding Government Incentive      8,100.00
  Estimated Value After Tax7,373.51


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## Car Mad (8 Jan 2009)

pAnTs said:


> Contributions Paid to Date Excluding Government Incentive 8,100.00
> Estimated Value After Tax7,373.51


 
So basically your down 727 euro.  Did you withdraw the government contributions when it matured?


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## pAnTs (25 Jan 2009)

no should I have??? Do you believe the markets when they do recover will ever get back to what they were or will they go above and beyond? Id say iit was worth about 10,000 and I just looked and it's down to 6,700 now  just wondering do other people that have shares expect to get back what they paid in? Im not even too worried about profit it's just getting back what I put in


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## Car Mad (25 Jan 2009)

pAnTs said:


> no should I have??? Do you believe the markets when they do recover will ever get back to what they were or will they go above and beyond? Id say iit was worth about 10,000 and I just looked and it's down to 6,700 now  just wondering do other people that have shares expect to get back what they paid in? Im not even too worried about profit it's just getting back what I put in


 
Thats the mistake I made too. When the goverment contribuations matured in 2006 I didnt withdraw it, as I didnt need the money. Now it has been wiped out just like yours. I have been in the SSIA but mine is with NEW IRELAND and i am paying in 8 years too.

I read yesterday an article in the Business section of the paper that in the 1930s great ression followed by a recession when shares were wiped out it took 1954 before shares recovered!!!


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## pAnTs (25 Jan 2009)

whaaaaa 25 years to just recover????? well I reckon I'm gonna leave mine in for another 5-8 years or so as I read this in another post...

"My original investment was 20K which I took out in Sep 2006. I contribute 250 per month. To date I have put in a total of 27,250 and as of today its worth 17,760.!!!

Its a PIP ARK LIFE investment. 			 		 	 	 I would be looking at a minimum of 10 years for this type of investment so if it was me I would continue investing knowing that my monthly contribution is buying more units now given that markets have fallen substantially. I look at equity investments over a ten to fifteen year period and property over a twenty year plus period."

I don't need the money and so it's no advantage to me taking it out. Would this be a wise thing to do?


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## Car Mad (25 Jan 2009)

pAnTs said:


> I don't need the money and so it's no advantage to me taking it out. Would this be a wise thing to do?


 
Yes. You need to sit, tight ride out the storm and wait for calm to come again.!


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## pAnTs (26 Jan 2009)

lets hope it does. Im afraid that I won't get back what I put in. Do you think it will recover to what it was? Im not sure what to expect from this


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