Legal & General Porfolio Bond

Krissie

Hi Not sure what a bed is apart from the one I sleep in (or not at the moment). I have an ISA and plan to top it up again this April but I take your point and will contact the IFA I saw before Alliance and Leicester to him to give a view on the portfolio. Thanks again.

jem16

Krissie wrote: »

Hi Not sure what a bed is apart from the one I sleep in (or not at the moment).

Basically Bed & ISA is taking the funds in your portfolio currently outwith the ISA tax wrapper and switching them into the ISA each year to utilise your full ISA allowance. You have £7200 ISA allowance. You can use all the £7200 in Stocks and shares or you can have up to £3600 in cash.

Yorkshireman_3

Krissie wrote: »

Well I was worried when I started posting, now I'm terrified! I need to think but thanks to all of you for your comments, experience and advice.
If I drank, I would be on the whisky by now!

Just wanted to say -- even though i couldnt give advise im glad you have been helped by other ppl on this site --- i do drink whisky :d it helps me If you have children just remember the important things in this life --- money comes second GL Krissie keep smiling in the end it will be ok :beer:

Kavanne

dunstonh wrote: »

It may be at the end of it that the advice is to go back to cash with most of it and put it down to experience. It may be that once you undestand it you will be more confident.

Surely the fund will grow again when the market goes back up... I thought the idea was NOT to withdraw money from investments when the market is down...?
If the best idea is to withdraw it why are IFAs saying sit tight?

jem16

Kavanne wrote: »

If the best idea is to withdraw it why are IFAs saying sit tight?

Krissie is clearly terrified of what is happening to her investment. This may be because she does not understand what investing is all about or it may be that she is not cut out to be investing.

It's not wise to pull out when the market is down but if it saves Krissie a whole lot more anguish it may turn out to be the correct decision. A specialist investment IFA who will take the time to teach her and help her understand may be all that is necessary but that certainly won't happen at a bank.

dunstonh

Kavanne wrote: »

Surely the fund will grow again when the market goes back up... I thought the idea was NOT to withdraw money from investments when the market is down...?
If the best idea is to withdraw it why are IFAs saying sit tight?

Problem is that currently £300k is sitting in just 4 funds. Thats crazy. The funds seem random with no strategy. The recommendation may be to build a revised portfolio or as Jem confirms, it may be that its just too much for Krissie.

Sitting on a bad quality investment hoping it gets better isnt what IFAs are saying. Switching and rebalancing to offer more potential within the risk profile is what should be done.

Krissie

Thanks to you all, it has really helpful reading all your posts. As for children, I don't have any but I do have a disabled husband and other distant relatives who are somewhat dependant on me. Jem16 is right, I am terrified at the thought of losing it all, it was money my dear old dad left me and he worked so hard all his life to save it, I would be devasted if I lost it in just over 12 months. I would rather give it all to charity then lose it. Actually money for me is of little importance, its a means to an end and as long as I have enough to keep myself and few others, I am content with my lot. I am sure that some of my anxiety is down to a lack of knowledge and understanding and only I can do something to rectify that. Once again, thanks to you all.
Off to watch Category 7 The End of the World now . LOL!

dunstonh

I am terrified at the thought of losing it all,

You cant lose it all. That would require every single asset invested within the fund to have no value at all. That would only happen if there was a complete meltdown and we returned the dark ages. Money wouldnt matter then. How much food and weapons you have would matter more!!

This comes back to what I was saying about just 4 funds though. A spread of say 10 funds averaged out to match your risk profile would probably have no more than 1% in any one asset. A spread of 4 funds means you have more money in one place.

Krissie

Thanks Dunstonh. I am going to take it up today and find out what exactly is going on.
Kind regards
Krissie

cheerfulcat

Hi, Krissie,

Krissie wrote: »

At the end of the day it is giving me a good income for the next 5 years and if we all start running scared then it may cause yet further instability.

Is this income coming from dividends, or is it coming from encashment of units every month?