Parking some money from Smartfunds to High Interest Deposit

M

Mister2000

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I invested about 90k 1.5 years ago in Evergreen and have made some significant losses.

I am thinking of moving out about 60k to a high interest deposit to ride out the storm with a view to re-investing when the market starts to grow again.

I will re-allocate the rest to maybe Trilogy II or Innovator to buy low and recoup some losses.

Any ideas / thoughts welcome...
 
Had similar on deposit monthly with AIB at 4.75% .Interest rates for deposits are going up all the time. Placed it on deposit for 2 months today at a rate of 5%. Rabo were offering 5.25 for 6 months. Thats too long to tie it up and its not compound interest as it will only be added at end of the term.
Banks are desperate for cash and desperate to keep their customers. Ask for these rates. They are available. 3 months was 5.15 but alot can happen in 3 months and you might do yourself out of a few bob by tying it up too long. Watch everything and move to whoever gives the best but avoid the lesser banks who could go under. You never know until its all too late.
I wouldnt trust much else at the minute. At least you'll keep up with inflation at that rate.
 
Northern Rock offer 5% on amounts of €1K+ and have the advantage of offering a 100% guarantee on deposits/interest courtesy of Her Magesty's Government. You can get slightly higher rates but usually with caps on the total amount in order to benefit from the best rate and without the 100% guarantee that NR offers. See the Financial Best Buys forum and www.itsyourmoney.ie lists of accounts on offer and the many threads dealing with maximising deposit interest returns with these accounts.
 
So ye don't think I am crazy moving my money out at a loss temporarily.
 
Anonymouse said:
Had similar on deposit monthly with AIB at 4.75% .Interest rates for deposits are going up all the time. Placed it on deposit for 2 months today at a rate of 5%. Rabo were offering 5.25 for 6 months. Thats too long to tie it up and its not compound interest as it will only be added at end of the term.
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Just to let you know Rabo's interest is compounded as it is calculated daily, but just not credited until the end of the term. Although 5.35% is the CAR so it takes this compouding into effect.
 
Buy high.....sell low....wait for it to go higher....buy in again...on to a winner there for sure
 
Mister2000 said:
I invested about 90k 1.5 years ago in Evergreen and have made some significant losses.

I am thinking of moving out about 60k to a high interest deposit to ride out the storm with a view to re-investing when the market starts to grow again.

I will re-allocate the rest to maybe Trilogy II or Innovator to buy low and recoup some losses.

Any ideas / thoughts welcome...
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Well you could buy MORE into Evergreen fund, as they are now cheaper. When they start going up again you'll make some gains on the newer fund units, which may offset your losses. So far, you haven't lost any real money as the paper value is down. If you sell now, however, you will realise those losses. You would be selling low value units just to buy higher value units later on. Not really sensible.
 
Has the original poster read the many existing threads about the Evergreen fund? Sounds like a lot of people bought into this and are no expressing surprise at the scale of the paper losses. At least some of them sound like they didn't realise that this sort of thing could happen!
 
Mister2000 said:
I invested about 90k 1.5 years ago in Evergreen and have made some significant losses.

I am thinking of moving out about 60k to a high interest deposit to ride out the storm with a view to re-investing when the market starts to grow again.

I will re-allocate the rest to maybe Trilogy II or Innovator to buy low and recoup some losses.

Any ideas / thoughts welcome...
Click to expand...

Hi Mister2000,

WOW! what fancy flashy names are these "so called professional fund
managers" gonna come up with next????? :)

you were unlucky investing when you did, ie before big drop
alot of us also did

but going by historical patterns (and history doesnt always repeat itself)
you should really NOW BE LOOKING TO PUT MORE MONEY IN
rather than cash out as you say.

you are basically trying to TIME the market,
I know hindsight is no good hear but the correct action would have
been to maybe only invest, say, half that 90k in the (silly) fund
and the other 50% in cash,
now in this big horrible crash, you move the cash into the non-cash fund
but who was to know!!!

alot of people are nursing serious paper losses from last year or two,
and are probably thinking similar questions

general investment guideline is if you dont need these cash short-term (upto 5 years)
let it ride with these skilled fund managers,
eventually things will change and the rising tide will lift all boats
meaning your fund WILL recover, along with all the downbeaten stocks.

if you do need the cash, you have to consider whether you have the nerve to endure anymore slumps, however the worst maybe over,
nobody knows the point "when the market starts to grow again" ! esp fund managers

the only thing is nobody knows when,
but if you transfer to cash now, you risk missing the rebound which
could be alot more than returns from high-interest accounts.

my advice is cash the whole fund in now, educate yourself in stocks,
and start investing for yourself, say 5k a month or so, into stocks
you arent exactly admitting your loss, but are gaining more control
over your investments, because for all their marketing fundnames spin
all these fund managers dont really care about you.

dont bother with any stock markets funds, unless its your pension (and you have to)

good luck
JR.
 
I have decided to pull on the basis that the unit price is going to go lower over the coming 6 months and the worst is not behind us... if it does go lower I will buy back in at a lower unit price in 6 months and have at least made some money on my deposit account.
 
Mister2000 said:
I have decided to pull on the basis that the unit price is going to go lower over the coming 6 months and the worst is not behind us... if it does go lower I will buy back in at a lower unit price in 6 months and have at least made some money on my deposit account.
Click to expand...

so you are gonna try time the market??

you havent said if you have other investments, pension, property, cash
etc

it would be highly unwise to have ALL your capital into just one single
fund,
even more risky to put it all on one stock.

the money you will have made on your deposit account will be negligible,
however you WILL have protected your capital from non-inflation loss,

but will lose out if your 6-month timing plan turns out to be wrong!

again good luck!
JR.
 
I agree not to have all eggs in the one basket... made that mistake here... Either way I needed to re-allocate investments to not have everything in one area... if I do re-invest over the coming months it will be split across funds... I will prob. not directly invest in stocks myself.
 
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