Help.i need advice on my investment bond

ama5005

in 2007 i opened a distribution bond with legal & general ..i invested 20K was told this was low risk and in previous year the money increased. However because of the credit crunch the money i invested is now down to nearly 16K and if i take my money out its another 1K penalty charge. So now i'm in a dilema ..i'm out of work temporarily and i want to buy my 1st property within a year or so...i have spoken to the financial advisor and they said i should leave the money till the 5 year is up as my investment "should" go up by then..but can i really afford to this risk ..suppose my money devalues to 10K or lower in 2012 !!

any advise i would be grateful

opinions4u

ama5005 wrote: »

However because of the credit crunch the money i invested is now down to nearly 16K

A medium risk fund would probably be down £6k instead of £4k.

and if i take my money out its another 1K penalty charge.

Well it isn't an instant access savings account is it?

So now i'm in a dilema ..i'm out of work temporarily and i want to buy my 1st property within a year or so.

Did you tell the salesman you'd need the capital for property? If so, there's a big chance you've been mis-sold the investment.

i have spoken to the financial advisor and they said i should leave the money till the 5 year is up as my investment "should" go up by then

How long did you expect to hold the funds for? This sounds reasonable.

but can i really afford to this risk

Your call now. Why are you now risk averse, when previously you felt you should have an exposure to risk in return for higher potential rewards?

suppose my money devalues to 10K or lower in 2012 !!

You'll have less. Suppose it goes up to £25k?

Nobody can gaze in to the crystal ball for you. But you crystalise a loss if you cash in now.

Entertainer

4k off 20k is actually pretty good.

And what opinions4u said.

ama5005

hi, many thanks for your advice opinions4u and entertainer

good news i recently checked the funds and it has risen up by £1000 ..so i will take your advice and leave the funds alone.