is it time to cut my losses


I think the answer to those questions is probably a resounding 'no'. With a 97% allocation and I would imagine hefty management fees in the order of 2.5% or more (no info given on this, but there will be management fees), it is clear that the markets need to increase over 5.5% p.a. just for OP to maintain nominal value of each year of invested monies i.e it is possible that for every €100 invested, fees take up €5.50, so only €94.50 of the €100 euro is invested. If you include inflation (say 2%) that would require 7.5% return from these markets each year just to maintain existing value of the investment. So I am guessing that OP would only be likely to be making return from the investments if and when they start delivering over 7.5% p.a. - which I cannot foresee as likely. This does not take into account the initial losses from lump sum and contributions already invested which is continuing - and presumably attracting annual management fees (2.5% or so?).
 
Im not sure if this is a silly question but I shall ask anyways.

So you know the way a lot of companies are going belly up at the moment, well what happens if the stocks AIB have bought on your behalf have been in a company who's gone bust??? also how do they decide what companies to purchase stocks from? does everyone who have the same investment plans have different shares?
 
pAnTs said:
Im not sure if this is a silly question but I shall ask anyways.
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It’s not a silly question

pAnTs said:
So you know the way a lot of companies are going belly up at the moment, well what happens if the stocks AIB have bought on your behalf have been in a company who's gone bust???
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If a company goes bust the common shareholders are last in the queue for any assets remaining after bond holders, preference share holders and other debt holders have been paid in full. So the value of the fund will decrease.

pAnTs said:
also how do they decide what companies to purchase stocks from?
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This will be detailed in the prospectus for the fund. You should read it (and understand it) before you invest.

pAnTs said:
does everyone who have the same investment plans have different shares?
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Almost certainly. With managed funds it’s up to the fund manager to select the shares to meet the fund’s objectives; even with similar type funds, each fund manager will [should] select the shares he / she thinks best will meet the fund’s objectives. So even similar types of funds may hold different shares.
 
Thanks PMU, God so some people may be doing better than others because of the fund manager?? thats interesting, I wonder what mine is like? are the banks obliged to tell you how many companies if any go under?
 
Hi -

Quick point here....I think everyone knows investement are, at least were meant to be long term BUT in these times will banks be around in 5 to 10 years time. And if not then is the money invested in these funds covered by the goverment guarantee schems?

Personally I don't think the money is guaranteed but open to correction on this?

Regards,
mydosh
 
hello again just said i would ask as this topic went a bit over my head ,should i stay with it or cut and run thanks .
 
robert18 said:
hello again just said i would ask as this topic went a bit over my head ,should i stay with it or cut and run thanks .
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You received good advice in the posts from voodoobazza and Mopsy after your original post. The rest of the thread is a debate on whether or not it is worthwhile keeping up contributions. So I’d say you’ve received enough advice to make an informed decision.
 

did anything improve after Obama's inauguration? my investment has gone down even more, I have now lost over 3,000. Im down from 10,000 to 6,800!!! hard pill to swallow
 

Hello people just said I would try and get a bit more advice , have kept up investments and still paying in montly with no sign of it going up , now I can still pay it but is there any point .
 
robert18,

Can you just confirm that the value of your plan has not increased in value from the date of your original post?
 
pAnTs said:
my investment has gone down even more, I have now lost over 3,000. Im down from 10,000 to 6,800!!! hard pill to swallow
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That's only a loss of 32%.

I hear that people who invested in bank shares in the last few year's are down over 90%.
Investing is a risky business.
 
The fund is down 3200 euro since I started it .Now to be honest it has stablized in the last year not dropping anymore but is not going up either .My initial plan was to leave it about ten years but is this a waste of time ,would you say they will ever come back .As I said before I am not stuck for the money and can leave it but I am still paying in monthly thanks .
 
I don't see what buying high, selling low is going to achieve for you, other than lock in losses at this point.
If you feel that world economies have no where to go but down over the next 7 years of your investment window, or have an alternate investment that offers in your mind a higher return over that window, by all means sell.
We have just come through one of the most turbulent periods in world markets in 70 years.
Give it time.
One of the main reasons equities offer higer historical returns is in a trade off for higher risks involved.
If people only expect (or can only stomach) their investments to increasing in value, there are other less risky avenues open with lower guaranteed returns.
If you are going to play the game, know the rules.
 

Well I would imagine that the AIB fund manager might invest in a company that AIB made loans to or have some connection with.
However lets assume the fund manager picks the best stocks for you as he sees fit, as previous posts have stated you are down 5.5e for every 100e invested...you are only investing 94.5e. Surely in this day and age you could pick your own stocks.Big retailers or big industrial concerns or some kind of tracker or index linked would be safe enough and drip feeding of course.
 
If you have financial capacity to withstand loss, then you should give time to recoup. The markets have almost bottomed out. I think it is better to switch from property to technology stocks, with looming threat of property prices going further down.
 
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