Continuing to save when SSIA has matured

S

Smallspuds

Guest
Good day,

I invested the maximum amount in a Bank of Ireland equity based SSIA which matured in April 2007. I then availed of a BoI offer at that time to continue saving the same amount for a further 3 years and the bank would match the Government contribtion for 6 months. This offer also allowed one to withdraw a maximum of 50 % of the value of the matured SSIA on maturity which I did.
However, since May 2007 the value of this equity investment has taken a severe hammering in terms of its value. When I spoke to a Bank of Ireland Life official early this year regarding the sense in continuing making monthly a contribution, she suggested that as that market was now weaker my contributions were now purchasing more units for my fund and she advised me to continue making contributions.

I am now seriously considering diverting my monthly savings elsewhere and would appreciate any sound advice as to where I might maximise returns and also any effect it might have (if any) on my existing investment with BoI.

Thank you
 
Smallspuds said:
Good day,

I invested the maximum amount in a Bank of Ireland equity based SSIA which matured in April 2007.........
Click to expand...

There is a query in todays Q & A in the Irish Times today which is nearly word for word the sme as yours. Are you EM from Offaly? Anyway IT doesn't answer the question at all. I read it and this one because I am in the same position:(
 
Hi if you want a 'savings' policy with capital protected you should find a notice account in a bank, I would consider this a risky enough policy to be in for just pure savings, you need to be willing to ride it out long term if it is speculative savings. Weigh it up for what the money is for eg. kids college money = notice account, money to play around with = speculative investment, stay in fund and performance will eventually improve. BOI probably worded it in such a way that they advised you to pay in but covered themselves as well, they can't promise on performance, I would suggest seeking advice from a Financial Advisor if you aren't sure.
 
I'm doing something similar with AIB. I'm happy enough to continue as I don't anticipate needing to dip into the fund, so I can pick and choose when I exit. I'll just ride it out for a few years and see what happens, knowing that I'm picking up relatively cheap units along the way. If you don't need the cash in the short term and can afford to leave it there for a few years, you probably should do so to maximise your return.

Remember the losses you've sustained are only paper losses and only become real if you have to cash in. Also remember, the equity SSIAs took a hammering in the first 2 years of being taken out, but came good in the end. It's all cyclical.
 
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