Check with your financial advisor or the person in the Bank who sold you the investment.I seriously would not advise this. I went to my financial adviser in AIB last May when my policy was down 1500 euro. The lady stated if you dont need the money then leave it there. Today its down 8649 Euro!!!
As a matter of interest how long does one think it will take to recover my losses??
I would be happy to just break even, never going back near equity investments again and just put my money into a high interest deposit account.
Check with your financial advisor or the person in the Bank who sold you the investment.I seriously would not advise this. I went to my financial adviser in AIB last May when my policy was down 1500 euro. The lady stated if you dont need the money then leave it there. Today its down 8649 Euro!!!
As a matter of interest how long does one think it will take to recover my losses??
I would be happy to just break even, never going back near equity investments again and just put my money into a high interest deposit account.
How much was the original investment and what type of product is it invested in ?
Check with your financial advisor or the person in the Bank who sold you the investment.
How much was the original investment and what type of product is it invested in ?
My original investment was 20K which I took out in Sep 2006. I contribute 250 per month. To date I have put in a total of 27,250 and as of today its worth 17,760.!!!
Its a PIP ARK LIFE investment.
As a matter of interest how long does one think it will take to recover my losses??.
My original investment was 20K which I took out in Sep 2006. I contribute 250 per month. To date I have put in a total of 27,250 and as of today its worth 17,760.!!!
Its a PIP ARK LIFE investment.
I would be looking at a minimum of 10 years for this type of investment so if it was me I would continue investing knowing that my monthly contribution is buying more units now given that markets have fallen substantially. I look at equity investments over a ten to fifteen year period and property over a twenty year plus period.
Allocation rate 97%
If you look at this chart http://seekingalpha.com/article/116077-jeremy-siegel-stocks-for-the-short-term taken from Prof Jeremy Siegel, author of ‘Stocks for the Long Run’, you can see that over long durations no other asset class gives a return like stocks, with cash being a real loser, and gold a dead duck. But what constitutes the ‘long run’ (i.e. the time period within which (to date) any investment in stocks gave a positive return) may well be a very long time. But it would follow from Prof Siegel’s research that one should stay put and not cash in.You can take out what ever you have left, and pay a penalty, or you can sit and wait for the market to recover, however long it takes.
If you look at this chart http://seekingalpha.com/article/116077-jeremy-siegel-stocks-for-the-short-term taken from Prof Jeremy Siegel, author of ‘Stocks for the Long Run’, you can see that over long durations no other asset class gives a return like stocks, with cash being a real loser, and gold a dead duck. But what constitutes the ‘long run’ (i.e. the time period within which (to date) any investment in stocks gave a positive return) may well be a very long time. But it would follow from Prof Siegel’s research that one should stay put and not cash in.
Askar, that is good point, similar to the one Naseem Talib makes on page 165 of ‘Fooled by Randomness’. Siegel’s research AKAIK relates to US equities. But, e.g. ABN Amro’s ‘Global Investment Returns Survey 2008’ says that: “An investment in UK equities of £100 at the start of 1900 would, with dividends reinvested, have grown to over £2.2 million by the end of 2007, a return of 9.7% p.a.” and that “. . . since 1900, equities are the best-performing asset class in every [developed market] country” This is the same conclusion as Siegel’s that equities (at least in developed markets, which make up 85% of world market cap) are the best performing asset class in the long run. So, unless global markets are about to change significantly in the future, it would be prudent to remain invested in equities for the long run and not cash in. (But the long run could be a very long time.) However, that is not to say that remaining in an IE managed fund of the type discussed in this forum does not carry certain non-market risks. For example, if the fund manager was unable to safeguard the value of your investment when markets fell, does he / she have the ability to recoup your loss when / if it recovers; and (b) will poor initial allocations and / or high management fees significantly reduce the recovery of your investment?Presumably the stocks in this chart are US equities only? What about performance of stocks on exchanges in Eastern Europe and Russia before the iron curtain came down? Can you extrapolate that these returns are possible for stock exchanges in emerging economies that are not democratic, innovative and competitive, and where the state is very often the invisible hand.
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