Hi all,
I have a New Ireland investment policy (initially 12.5k). In 2008 when it had dropped to 7.7k I changed it into a secure cash fund for a year in October 08.
The end of the year has come and it is now worth 8.1k and this has now been placed in a deposit account of 1% and I have a management fee of 1.25% so in effect I am losing money albeit slowly.
I do not regret taking it out of the equities when I did but I am trying to decide what to do next. I would ideally like to leave it within the policy as I can grow it without the 28% tax back up to the 12.5k.
There are essentially four options I see so far:
1.Within the same policy I can change to 2014 government bond with net interest of min 6.6% typ. 7.98% after management charges. Very poor performance.
2.Put it back into an equities fund in the same policy and take the risk... what fund... General view of the markets? Evergreen still has a lot of commerical property... don't see that going up anytime soon!
3.Encash my policy and take out a secure advantage policy - like a guaranteed evergreen.
4.Take it out and put it in an An Post 5 year six month 21% account (4.7% equivalent EAR as there is no tax).
I won't be intending to use this money for a few years...
I don't want to 'accept' the loss in a way by closing the policy... but unless I go equities it doesn't seem like I should stay in the policy with the management charge.
Criticial response are fine!
Thanks everyone,
Burmo.
I have a New Ireland investment policy (initially 12.5k). In 2008 when it had dropped to 7.7k I changed it into a secure cash fund for a year in October 08.
The end of the year has come and it is now worth 8.1k and this has now been placed in a deposit account of 1% and I have a management fee of 1.25% so in effect I am losing money albeit slowly.
I do not regret taking it out of the equities when I did but I am trying to decide what to do next. I would ideally like to leave it within the policy as I can grow it without the 28% tax back up to the 12.5k.
There are essentially four options I see so far:
1.Within the same policy I can change to 2014 government bond with net interest of min 6.6% typ. 7.98% after management charges. Very poor performance.
2.Put it back into an equities fund in the same policy and take the risk... what fund... General view of the markets? Evergreen still has a lot of commerical property... don't see that going up anytime soon!
3.Encash my policy and take out a secure advantage policy - like a guaranteed evergreen.
4.Take it out and put it in an An Post 5 year six month 21% account (4.7% equivalent EAR as there is no tax).
I won't be intending to use this money for a few years...
I don't want to 'accept' the loss in a way by closing the policy... but unless I go equities it doesn't seem like I should stay in the policy with the management charge.
Criticial response are fine!
Thanks everyone,
Burmo.