ISA value falling

paleeagle

Hello, this is my first post and I hope someone can help as I am concerned and confused.

I have a share class ISA and as I was aware when I opened it, it can go up and down. However lately it has been going down and down.

My confusion comes with this, since all the financial problems have started worldwide it has fallen by some £400 from approx 2300 to around the 1900 mark and still falling little by little daily. :eek:

Do I
A: ride the storm and wait until it picks back up. That way I still have savings for a rainy day. (i am I getting married in 2010 so that will be really rainy. (just joking))

or

B Cut my losses and close the isa to stop me from loosing it all.

I dont mind waiting for the market to pick back up, but will it ever recover enough for me to recoup my losses?

Any advice would be great as all the banks/share companies want me to do is keep it as they are not very independent.

Thanks

Matt

robnye

unfortunately - investing in shares can go up or down, therefore reducing your investment.......

cynics may say, cut and run, others will say stay and watch the market recover. although possibly not back to what it was

q) is the value of the fund higher than what you invested initially.... if so personally i would stay in it or you could transfer it into a safer savings account

itsnever2lateisit?

I am in the same boat, and its a difficult one. Remember that a stock and shares ISA is an investment rather than savings, and as such are for the long haul. Further it should be money that you dont need, so that you can withdraw at a time most advantagious to yourself. You will also lose the tax advantage should you withdraw, although at present there seems to be no advantage.

FWIW I have reduced the amount I put into my Stocks ISA for the moment, preferring to save cash deposits.

If you can leave it there AND save enough elsewhere for you wedding that would be fine and dandy. If you cant then the moment to end your ISA is a bit of a lottery I'm afraid

paleeagle

unfortunately it is less than I originally invested.

Like I said I do not mind waiting 5-10 years if needs be for it to recover, as like you said it IS money that I dont need at the moment.

However what I dont want is to be left with a £100 investment from a £2500 original

dandandan_3

paleeagle wrote: »

unfortunately it is less than I originally invested.

Like I said I do not mind waiting 5-10 years if needs be for it to recover, as like you said it IS money that I dont need at the moment.

However what I dont want is to be left with a £100 investment from a £2500 original

If you're waiting 5-10 years and read anything about investing you'd know that at some point it will most likely be up and, as it's currently down, why not ADD more to it, buying more shares at a lower price?

This really is simple savings advice: would you buy more shares when they're priced higher or lower?
Buy low, sell high. Not the other way around

carlosthejackal

I am in almost the exact situation. Invested money in an investment ISA back in May I have lost near to £1000 from the £2450 I started with. Since it started falling I have been investing in a cash ISA instead. I was weighing up cutting my losses in my investment ISA but I've taken the view that it may recover in 3-5 years time. Of course it may never get back to where it was but that's the risk you take.

At least I still have a job and a home, there will be people in much worse situations at the moment.

Lokolo

^^ well said

I am starting investments now. Since I started (now 4 months woo woo). One of my funds has reduced 20%, the one suggested by HL which I kind of liked, then one of chose all my own has only reduced 8%.

However, a 40% drop for you souds a bit harsh! You're most probably high risk area?? However, hopefully in the longterm that'll help