nfu flexibond - advice

suzey1

My retired in-laws invested £200,000 in a medium to high risk 5yr flexibond with the nfu in spetember 2007. They seem to think it is only worth £160,000 now after 2 1/2 years. Is it worth them waiting to see if their investment goes up in the next 2 1/2 years or should they get out now.
They sold their house and put the capital (£200,000) into this flexibond. They now rent a house and the rent was supposed to come from the profits from the flexibond. As this is not happening they are withdrawing £800 a month from their savings account to pay their rent.
I have suggested that they withdraw their money from the flexibond and buy a house with it. At least they will have somewhere stable to live and not have to find rent every month.
Should they leave their money where it is, or get out quick?

dunstonh

Is it worth them waiting to see if their investment goes up in the next 2 1/2 years or should they get out now.

They knowingly invested in medium/high investments so the recent drop should not be a concern to them. Medium/high risk has a 50% drop potential and they are only 20% down. Given the drop in the drop we have had over the last 2 years they should be quite pleased with that.

As this is not happening they are withdrawing £800 a month from their savings account to pay their rent.

Given cash interest rates, they would still be drawing from their capital anyway.

I have suggested that they withdraw their money from the flexibond and buy a house with it.

An option. However, they could end up losing another 25% as house prices continue to fall.

Should they leave their money where it is, or get out quick?

You havent actually told us about the investments. Just the administrator and the tax wrapper. It could all be in cash (although unlikely as you say medium/high risk).

Their options are to leave it where it is, switch it around or cash it in (and pay penalties). Without a crystal ball, no-one knows what option will be best. One thing is sure that all three options are likely to be best at different times.

missile

They sold their house for £200,000 in 2007? I would be interested to know what that house is worth now?

I suspect they would have "lost" a similar amount on the value of their property.