New Ireland Policy

G

geri1

Registered User
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Hi, I would value the opinions of others on this forum in relation to a new Ireland policy which I took out in 2007. The value of the policy was €50,000 divided into three funds, in May 2008 our Encashment value was €39,000 and in 2009 our encashment value was €26,000 a total loss of €24,000. There are three years left to run on this policy my question is should I take the 50% loss now or hold on and hope that the fund rises a little!!
Thanks for your opinions,
Ger
 
Without my being rude or nosey, how did you invest for a fixed time period. Depending on the funds you are invested in, the markets are starting to some positive growth. With so many Governments throwing so much money into their country's finances the worst might be behind us. But nobody knows what is around the corner.Personally as long as the deal you are in is being implemented what is the point of taking such a hefty loss.
 
thanks merceman for your comments and no you werent being rude or nosy!!!!!! my feeling was to stick with the policy but when you hear so many conflicting reports it is hard to know what to do for the best. these are extraordinary times and i am just a poor country girl doing the best she can.
 
Hi there,

Really I would have to know the composition of your investments (what funds you're invested in). I'd imagine by the loss you've had you have a large exposure to equities and prob a managed fund most likely evergreen.

There are a no. of factors you need to consider

Do you need access to the cash in the short term (whats your current situation)
What are your investments comprised of (bonds,equities commodities)
When is the date of the valuation you received as markets have been very volatile.

Generally speaking the outlook for equities over the medium term 3-5 years is positive and the valuation you recieved was probably at a time when sentiment and risk appetite by investors was very low.

The funds you have invested in have prohibitive management fees and penalties for early encashment. I'm not a big fan of managed funds but I would guess that is where the bulk of your money is invested. They have a large exposure to Irish equities and property.

Theres a lot of ifs and buts to this advice but I would be inclined to leave it where it is as there is the potential for a lot of upside in markets over the medium term and you'll get punished with a lot of charges.

That been said there is absolutely no guarantee markets will not suffer further and I stress without all the details its impossible to give sound advice.
 
I also invested in a New Ireland policy but it was a gauranteed one. I got a bit bolder in 2007 and invested in BOI fund management scheme. I didvided it into three, Evergreen , Inovator and Trilogy. I was keeping an eye on this and when I got my first 12 month statement it didn't match. When I informed them they told me that my money was in a S4 policy, Evergreen S4, Inovator S4 and Trilogy S4. I didnt and still dont understand the difference. Needless to say that they are down quite a bit with Trilogy the worst affected. You are allowed switch funds and I am contemplating switching the Trilogy fund as it is heavely depended on the Irish Proberty Market and I can only see that decreasing further before it starts to regain but I think that may be a long time. Would anyone have any advice here please on switching maybe to a fund with less dependecy on the Irish market and to one where marjets might recover quicker than Ireland. Its a killer as I put it in for something I need in 4 years time and I am down 18K to date. Desperately Yours
 
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