moving investments

[Ann230]

I was made redundant 2 years ago and after paying off my debts I put remainder e30,000 into a scheme with Irish Life. It was invested in stocks and shares around Europe. It currently worth e15,000, so Iv lost half of it. I was adding to it monthly but stopped that few months ago. My advisor told me to leave it as it is, it will eventually come back up in a few years.
A friend told my to take it all out before it keeps going down and Im left with nothing. I rang IL themselves yesterday and the chap told my to put it in a cash fund for few years and re invest when the markets improve in few years.
Any suggestions on what to do before its all disappeared.

 

[mercman]

Your money is invested in equity funds that have got a hammering. There is not much point in moving it now as the damage is done. Moving it to a cash fund now now means you are taking the value of today and investing in a cash fund yielding a very small return. If you don't need the money leave it, it should come back albeit it will take a number of years. Do something drastic now and you might regret it. Your adviser is right IMO and don't mind your friend. Is he/she some kind of expert ?

 

[so-crates]

Move it and you definitely lock in the losses. I'd listen to your advisor and leave it if I were you. Buying at the top of the market is always more expensive - buying now is actually the best time if you want to realise a big increase - it does carry more risk though. I'd actually be inclined to continue putting money in - though perhaps a bit less than usual