Savings and Investment

S

Stupid Boy

Registered User
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Hi All,

Not sure if this is in the right section, it's a coupled savings and investment entry.

I spoke with my dad last night who like many of us is a little worried about the current economic climate.

He currently has his pension of some 30 years with his current employer which is save...

However two years ago, an option came up through the company to apportion a % of monthly wages to a share / savings scheme with the halifax ... 50% of the money being used to buy halifax shares and the other half going on deposit. Another fund came on stream offering the halifax shares at a lower price at the beginning of the year which he in turn signed up to...

He now is paying towards the two funds on monthly basis and is tied in for a 5 year period, however he is now worried that in the doomsday scenario if Halifax failed he would have lost two years savings...

I know without going into the fund you wouldnt be able to give me full advice... but in posters opinions do you feel the fund is exposed to the current market and in turn if the bank fails, the fund too fails effectively wiping out savings?
 
It does appear that the Halifax will be saved by the merger with Lloyds TSB. However the way things look at present he may be waiting to get the full extent of his savings back although if still investing he is probably averaging the investment.
 
If he is paying in monthly then he is now lowering his average cost with every payment which, while it is not perfect, is streets ahead of the people that put in a lump sum.
It will take him much less to time to come back in to profit.
 
Thanks for feedback...

I thought he wouldn't have been as exposed as lump sum investors however it's still a fair portion of his monthly wage that he is investing, and effectively seeing fall each time he puts money into it...

This is possibly the silliest question you'll hear, but if Lloyds takeover is successful, will they effectively take over the fund or would they offer maturity on the fund?

I'll just get him sat down tomorrow and get him told to get whatever else he has spare into the monthly high saving accounts in the AIB and Anglo...
 
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