SSIA Equity plan -what to do with the savings?

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donabate1

Registered User
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set up an SSIA savings plan in feb 2002 , choosing the investment option, can't remember the name of this option.

When the plan matured, BOI had an ofeer whereby one coul continue to save for a further 6 months and they would match the govt contribution for that period. I have continued to pay into the plan.

At present the value of the plan is 22,948 euro. My question is whether I should continue paying into this plan or put it in somewhere else. I'm afraid that due to the current economic climate that i am losing money in the shares part of the plan.
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Are you sure of that value? Most SSIA equity plans (including my own) have dropped a lot further than that.
 
Hi "Complainer".

Yes it's correct. I was given this balance by BOI life over the phone today. Was your ssai equity with another financial inst.?
 
Yep - Mine with Quinn Life and hers with EBS. The value of your account is near enough to the combined value of our two accounts, based on the last report I saw!
 
Hi Complainer

Did u both pay in the max amount allowed per month, ie. 254? I'm annoyed, because my current value is just that whic I payed in. i have lost any return on the shares, plus the govt. contribution.

If both you and hers is so low, can I ask you why you continue to pay in?

BOI advised me to leave mine as is, as the market will improve, that's what they have always said throughout my plan term!
 
donabate1 said:
Did u both pay in the max amount allowed per month, ie. 254? I'm annoyed, because my current value is just that whic I payed in. i have lost any return on the shares, plus the govt. contribution.
Click to expand...
Yes, max contributions for both, and we've lost a whole more that you, it seems.
donabate1 said:
If both you and hers is so low, can I ask you why you continue to pay in?
Click to expand...
I'm not paying anything in now, because I just don't have the money any more.

You need to make a risk/return decision - do you want to risk further losses in order to make substantial gains in future, or do you just want to keep it on deposit, at very low (but safe) returns.
 
hi "Complaainer"

Thanks for posting back Ya, I think it's a waste to continue pying in to it, as i said in last posst I have made no return on it. Although, you have stopped making payments, have you left the money as is, or did you withdraw. if i withdraw i think i will incur tax.
 
I've left it there, as I don't plan to need it for more than 5 years (though in the current environment, who knows).
 
Hi Complainer

Just came accross this article. It's very good, especially this piece of advice near the end.

So what action, if any, should savers who now find themselves in this situation take? “I wouldn’t encourage anyone to cash it in unless they’re in difficulty financially and they need cash,” McCarthy says.
Instead, they should stop making contributions into the fund, and hope for a recovery in the value of their investment, he recommends.



http://www.irishtimes.com/newspaper/finance/2009/0529/1224247665092.html
 
Hi

Find out from BOI what fund you are invested in if it is high risk transfer the lump sum into low risk fund within the plan. if you are still making regular contributions into the plan maintain them in the existing fund.

You could partial encash from the fund and put this on deposit. If paying regular contributions cut them in half and divert to regular saver deposit account.
Hope this is of benefit

Regards

John
 
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