Share based Bonds

Worden1

I have a large amount of money in a with profits flexibond, withthe fall of share prices this amount has already gone down by £30,000. Should I cut my losses and take my money out or just leave it in the hope that it it improve. Hopefully the market will improve in time but has anyone any idea how long it would take to recoup this amount of money?? Thanks, I am quite illiterate with regard to these things.

dunstonh

I have a large amount of money in a with profits flexibond, withthe fall of share prices this amount has already gone down by £30,000.

The only thing that should have gone down on a with profits fund is the terminal bonus. The annual bonuses or unit price should not be removed.

Should I cut my losses and take my money out or just leave it in the hope that it it improve.

You would need to clarify the product information first. If its only terminal bonus removed/reduced then that is not too bad.

but has anyone any idea how long it would take to recoup this amount of money??

Crystal ball job. Although if you have left it this long without pulling it then you probably have left it too late and may as well sit through it. Typically, crashes occur once every 5 years so drops like this are not uncommon. The timescales differ and the markets do not always perform in line with the economy. You "typically" find that the markets drop before a recession but go up during the recession as they look for recovery down the road. As to when, how much and how it happens, no-one can say.