Managed Fund Advice - Help!

emilys_2

Hi there

I have been paying USD 200/ month into a managed fund for the last 7 years (a total of USD 17,000 to date).

The terms of the fund were that I was to pay into it for 10 years and leave the money in the fund for a further 5 years. In doing so, all going well, I would supposedly end up with around USD 120K at the end of the 15 years.

As of today, the value of the fund is USD 19,585 (i.e. it has made USD 2,585 over 7 years). Therefore, although I am halfway through the term, I still have a long to go before I end up anywhere near the figure they projected when I set the fund up.

It seems to me that the fund is not performing very well, however I am not very clued up in these matters so would like some advice from anyone who has any knowledge/ experience!

My husband and I would now like to buy some property and I am wondering whether it makes more sense to remove the money from the fund and put it towards a house (there are some penalties involved, therefore I will probably end up with around what I have put in).

Any advice/ suggestions would be very much appreciated!!!!!

Thanks

Emily

cloud_dog

Emilys, not sure of you realise but this is a UK based website.

Having said that it really depends on how much you will be penalised for withdrawing from the fund early and what, if any additional value you may obtain by buying the property now in a buyers market.

Linton

Unless my Excel is remiss or I have misunderstood the terms of your investment, what you say you were told would be equivalent to an interest rate of 17% per year over the 15 years.

Sorry, but no way is any investment going to be able to guarantee that. It would be a remarkable investment that achieved it at all.

According to my calculations your investment is actually making about 5% annually, which if it continues like this would give you a 15 year pot of about $39K.

What was the investment???

Actually 5% a year, considering the recent economic events isnt too bad, especially if its tax free. But it's not going to make your fortune.

Are you in the US? This is a UK website and so there is limited expertise on the US situation here.

jimjames

Linton wrote: »

Unless my Excel is remiss or I have misunderstood the terms of your investment, what you say you were told would be equivalent to an interest rate of 17% per year over the 15 years.

Sorry, but no way is any investment going to be able to guarantee that. It would be a remarkable investment that achieved it at all.

According to my calculations your investment is actually making about 5% annually, which if it continues like this would give you a 15 year pot of about $39K.

What was the investment???

Actually 5% a year, considering the recent economic events isnt too bad, especially if its tax free. But it's not going to make your fortune.

Are you in the US? This is a UK website and so there is limited expertise on the US situation here.

That sounds like one of Madoff's funds!

Definitely would be good to know what the fund is.