Any Investment suggestions gratefully appreciated

L

Laoisa

Registered User
Messages
28
Good afternoon,
Since 2016 I've had €200,000 invested in Zurich, it did well it was €262,000 until 2020.
I changed it to a cash fund in March 2020 and was shocked to discover the amount I was charged to have it in cash.
The net value of the fund after tax in €190,000.
There has to be a better way to save money, I'm retired this is my nest egg.
Any suggestions would be gratefully appreciated
 
There is something wrong with those figures.

If you invested €200k and it has fallen in value, there is no exit tax.

If you switched €262k to cash in March 2020, it has not fallen 27%

Brendan
 
Depends on exactly when they moved to cash in March 2020 as that was a very volatile month with Covid concerns. Maybe the conversion to cash happened when market was tanking and the losses were locked into cash and they missed out on the bounce back.
 
There should be no early exit penalties at this stage. There is a mistake with those figures.

Investors regularly think they shouldn't be paying a management charge to be sitting in cash. That is not what the management charge covers. It covers Zurich's costs, broker remuneration, some trading costs and profit. The management charge that you pay is the same percentage whether you are sitting in cash or invested in equities. There are additional costs of trading that are deducted from the unit price before it is calculated each evening but you don't see that.

An investment bond is the wrong place to leave cash savings. Either get it working for you again (you have missed some incredible growth already) or take it out and stick it in State savings.


Steven
www.bluewaterfp.ie
 
Thank you, it was €262,337.90 at the begining of 2020, by March it was 252,455.51, that's when i switched it to a cash fund. On Monday when i called for the balance I was informed it's value was €219,418.09, after tax it would be € 190,892.55
 
Laoisa said:
On Monday when i called for the balance I was informed it's value was €219,418.09, after tax it would be € 190,892.55
Click to expand...
Surely the tax is levied on the €19k gain resulting in an encashment value of maybe c. €210k?
 
This sounds wrong. Are you sure the €190k is the full encashment value after tax? To me it sounds like the max partial encashment value after tax which would be in the region of 90% of the fund.
You might need to clarify those values again.

Unfortunately by switching in March 2020 and deciding to stay in cash for the last 22 months you have missed out what could have been significant growth within the fund.

You mention this is your nest egg. Have you a plan in place for future use for these funds is it just a general safety net? Without further context it will be difficult for anyone to give you meaningful guidance on what to do next.

For a start give the provider a call and clarify the values again. Perhaps ask for it in writing or look up the last annual statement as that will give you a rough guide.
 
Thanks for your replies. I called the provider & yes the figure they provided were based on a partial encashment, the full net encashment is €212+.
Phew! what a relief not to have a negative return. These funds are for general safety.
I think it's best to move it from cash to some sort of fund, any suggestions an a fund?
 
When will you need to use this money?
What's your overall personal/financial situation?
E.g. general health, dependents, mortgage/rent, other savings/debts, pension income, annual budget etc.?
You might be better off doing a Money Makeover post.
It's difficult to give informed comment without more info.

Money makeover

Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .
www.askaboutmoney.com
 
Last edited:
Thanks, if only I knew then what I know now.
Age:
71
Annual gross pensions
€55,500
Monthly take-home pay:
€3930
Type of employment:
Retired occassional work ( not since the pandemic)
Expenditure pattern:
Maintaince charges
Insurance
Saving
1,900 permonth
Rough estimate of value of home
€350,000
Mortgage on home
Paid
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
€700,000 ( State savings, saving bonds & Zurich)

Do you have a pension scheme?
I have one and it pays €38,650 a year
Do you own any investment or other property?
Just a plot
Ages of children:
None
Insurance:
Health insurance
What specific question do you have or what issues are of concern to you?
I would really appreciate any suggestions on whether it's a good idea to leave the €212,000 in cash in Zurwich or if there is a better imvestment alternative
 
That depends on what your objectives are - do you want to to increase your capital, have extra income or ensure no loss?
 
Laoisa said:
Annual gross pensions
€55,500

Do you have a pension scheme?
I have one and it pays €38,650 a year
Click to expand...
I presume that the first figure is the second plus the state pension?

You mention a plot of land - do you have any intention to develop this?

As @jpd says you probably need to clarify what your priority is for the lump sum.

You seem to be in a very comfortable financial situation so congratulations.
 
Thanks again, I appreciate your replies. The plot is my burial plot, I would like to put the funds from Zurich in a safe investment around a mid risk range. Yes I would like to protect the fund and get a return on it. I just have no idea which funds are good. I like what I read on this site and the information & suggestions are really sound.
 
You would've been better off leaving it with Zurich invested in equities or some lower risk/reward fund rather than trying to time the market, switching to a cash fund and then cashing in. But that's water under the bridge now.

You haven't clarified if/when you might want to use some or all of the money and for what.

What charges applied on the Zurich product that you were in?
 
Thanks, the funds are for my dottage & druelage, home care or nursing home.
The service charge in Zurwich was .85% it was the negative return on cash that gobbled up the funds
I need to decide what to do with that fund this week to avoid the - return on cash. HELP, PLEASE
 
Thank you all for your feedback, I hope I provided anough information for suggestions on where I might stash this €212,00. It is not needed for the forseeable future, mid risk, possible 5-7 years maybe longer, depends on how well I age & how my health holds up.
 
Maybe I should put it in the Post office 10 year saving bond, unless anyone has any other suggestions.
 
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