Lost £570 this year in L&G - what to do?

bundly

middlepuss wrote: »

Stick with your L&G investment.

Chances are your valuation is now out of date and you might even find you are now in profit.

Hiya

The valuation was dated 10th February.

utigers

I would reconsider stock market investments if you are panicking over this sort of loss, are you sure it is for you?

I wouldnt worry one bit, but thats me.

middlepuss

bundly wrote: »

Hiya

The valuation was dated 10th February.

Yup, you might well have made much of the £570 up since Feb 10th.

But don't look up the value to check. The market can easily move 5% up or down in a week and if you're the sort of person who gets elated by a £1000 rise and terminally depressed by a £1000 drop you'll drive yourself insane if you check the value every week.

jem16

middlepuss wrote: »

Yup, you might well have made much of the £570 up since Feb 10th.

But don't look up the value to check. The market can easily move 5% up or down in a week and if you're the sort of person who gets elated by a £1000 rise and terminally depressed by a £1000 drop you'll drive yourself insane if you check the value every week.

Doesn't matter what it's doing at any time.

It's a structured product with a guarantee on maturity.

jamesd

bundly, the variation you've seen is small. It's quite common to see variations of that percentage level in the stock market index values over just a few days. The change you've seen is within the random variation of values range and negligible. These days I have months with the variation in value is a couple of months of gross pay, sometimes four months of net pay. It's just something that happens when you have quite a lot of money invested and one of the emotional challenges is to get used to it and accept it as normal.

The guidance that you've been given by dunstoh is sensible and I suggest that you follow it.

Next time you consider purchasing a product like this please ask here about DIY GEBs and how to build your own version using a combination of term deposit account and stock market index tracker. The 65-80% term deposit portion provides the capital guarantee at the end while the tracker provides the stock market growth link.

bundly

THANKS everyone for your input.

My ignorance on these matters is appalling.

When I read:

jamesd wrote: »

Next time you consider purchasing a product like this please ask here about DIY GEBs and how to build your own version using a combination of term deposit account and stock market index tracker. The 65-80% term deposit portion provides the capital guarantee at the end while the tracker provides the stock market growth link.

... my eyes just glazed over.

Oh dear!

I think I will just get Nationwide Bonds online in the future :-(

Thanks again

B

jamesd

It's not too bad. Just one bond and one tracker fund.

bundly

jamesd wrote: »

It's not too bad. Just one bond and one tracker fund.

Sounds easy when you put it like that. I think people like you who are highly knowledgeable in the financial field don't realise that people can be so ignorant that it just looks like a big jumble of jargon words placed in a line

middlepuss

OP, sounds like the advice is:

1. Stick with what you've got until it matures.

2. Don't take advice from friends who know nowt.

3. Between now and maturity get to grips with what index tracker unit trusts etc actually are.

4. Sound out the knowledgeable folks on here before deciding where to invest next time around.

droopsnoot

I'd agree that kind of loss is annoying, but it's not a plummet. I put some stuff into what was then Nationwide Unit Trusts (around 2001) to see it drop by around 50% over the next twelve months. It spent some years getting almost back to the number (not value) that I'd put in, almost to a point where I thought I might cash them out to get something more safe, then we had the crunch and it dropped again.

You can sign up for the Nationwide IPS web site, that will show you the current daily value of investments like this.

I must admit I agree it's all a bit confusing, and the repeated name changes on the accounts aren't helping. I fully understood what I was signing up for at the time, but they must have some kind of special force-field around the door because very shortly after I'd left the place I couldn't have explained a single thing about any of the accounts I'd opened / bought.