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Title: ISA's good or bad? Post by: blinkpip on Thursday, November 13, 2008, 11:02:32 I know someone who lost £1000 with his CIS isa when he checked this week. Is it worth taking it all out now or is it likely to get improve?
Title: Re: ISA's good or bad? Post by: Nemo on Thursday, November 13, 2008, 11:11:15 I'm guessing you mean the stocks and shares ones?
Cash ISA's shouldn't be losing money. Title: Re: ISA's good or bad? Post by: blinkpip on Thursday, November 13, 2008, 11:29:22 Yeah probably, they invest it for you.
Is it time to pull out? Title: Re: ISA's good or bad? Post by: Colin Todd on Thursday, November 13, 2008, 11:31:39 Yeah probably, they invest it for you. Is it time to pull out? If you dont need the money right now, then wait few years for the market to recover and you wont make a loss. How long that will take is impossible to say though If you need the money now, then you're a bit screwed really, but thems the risks you take with the stock market. Title: Re: ISA's good or bad? Post by: axs on Thursday, November 13, 2008, 11:32:02 You should never leave it too late to pull out. You might find your investment has matured in an unexpected manner in 9 months time.
Title: Re: ISA's good or bad? Post by: janaage on Thursday, November 13, 2008, 11:48:31 Is it time to pull out? Fucking hell fella what kind of question is that?
No one knows, if they did they wouldn't be on here. Stock markets, whether invest through ISA's or straight forward UT, OEICS are a gamble. If you're mate is worried about losing more money switch it over to a less adventurous fund, but the problem with that is when the markets do recover he will not maximise his potential gains. ISA's are a very tax efficient way of investing, so if he pulls out of his ISA where's he going to put his money? On the high street? In that case the lack of potential returns in better times rears it's ugly head again. As others have said if he doesn't need his money don't surrender it, just look at the other funds available. You haven't said when he invested and over what period he's lost this money, but don't forget that ISA's (stocks and shares based) are medium to long term investments, it's only a paper loss at this stage, might be a time to be brave and ride the storm out. Title: Re: ISA's good or bad? Post by: pauld on Thursday, November 13, 2008, 12:28:43 As a rule of thumb, pretty much any long-term investment is going to be showing a paper loss at the moment. If you need to cash it in, you're a bit stuffed but if you don't, best thing is sit tight and see how it looks in a couple of years rather than realise the loss now.
EDIT: or put more simply, what janaage said Title: Re: ISA's good or bad? Post by: Nemo on Thursday, November 13, 2008, 12:53:42 You should never leave it too late to pull out. A lesson taught by many a Catholic school. Title: Re: ISA's good or bad? Post by: nevillew on Thursday, November 13, 2008, 13:13:13 Is it time to pull out? Fucking hell fella what kind of question is that? No one knows, if they did they wouldn't be on here. Stock markets, whether invest through ISA's or straight forward UT, OEICS are a gamble. If you're mate is worried about losing more money switch it over to a less adventurous fund, but the problem with that is when the markets do recover he will not maximise his potential gains. ISA's are a very tax efficient way of investing, so if he pulls out of his ISA where's he going to put his money? On the high street? In that case the lack of potential returns in better times rears it's ugly head again. As others have said if he doesn't need his money don't surrender it, just look at the other funds available. You haven't said when he invested and over what period he's lost this money, but don't forget that ISA's (stocks and shares based) are medium to long term investments, it's only a paper loss at this stage, might be a time to be brave and ride the storm out. The size of the investment is a factor as well. If it's £30,000, I'd be putting more in. If it's only £3000 I clearly wouldn't |