ISA'S - I still do not understand - sorry!

nicky2_2

Help please - and be gentle - senior and blonde moments all at the same time.

I have read and re-read Martin's info and looked at postings etc and still lost - the curtain has come down and I am looking for some pointers.

Made redundant in 2000 invested £7k in an ISA Scottish Widows which as of 26th Jan 05 is worth £3,480!! How is that? Should I transfer? If it is relevant I have Accumulations shares in an American Growth Shareclass A.

If there is anyone who has enough patience out there, please can you be kind enough to give me step by step guidance.

Many thanks
Nicky

lipidicman

nicky2 wrote:

in 2000 invested £7k in an ISA Scottish Widows which as of 26th Jan 05 is worth £3,480!! How is that? Should I transfer? If it is relevant I have Accumulations shares in an American Growth Shareclass A.

Your ISA is a share-based investment wrapped in a Maxi-ISA wrapper. As the markets have fallen your investment is worth less than you put in. Shares are to be considered a long term investment (say 20 years). Hopefully your fund will improve

HTH

oldagetraveller

I'm in a similar position, Nicky, but fortunately not as large a percentage loss as you. I invested £7000 over two years in a stocks & shares based maxi ISA in 2000/01 and the £14000 became less than £11000 in a matter of weeks! Now gaining slowly and attained £12400 at last valuation. I intend to keep the money where it is because as has been stated these have to be classed as a long term investment. If you are able, don't take the funds out, it's too much of a loss at the moment.

dunstonh

Your ISA is invested in a med/high risk fund. Ideally you should have an invested in a range of funds that average out to your risk rating.

Equity ISAs like yours can invest in low risk funds (which would have done very nicely in that same 5 year period) up through medium risk funds (which would have dropped due to the stockmarket crash initially but would have recovered most, if not all of the drop by now and many have gone on to make good profit. You then enter the higher risk funds like yours which have high potential to go up or down by large amounts. The USA has been an awful place to invest over the last few years although it may be a good place to put money now.

I certainly wouldnt say 20 years like lipidicman as it really depends on the areas invested. A low risk fund could be considered 3-5 years. A medium risk fund 5-10 years and high risk fund then 15-20 years.

lipidicman

dunstonh wrote:

...You then enter the higher risk funds like yours which have high potential...
I certainly wouldnt say 20 years like lipidicman as it really depends on the areas invested
....high risk fund then 15-20 years.

Our estimates seem to tally though!?

Dunstonh's advice is better than mine, but you would expect that from a man in the business!

nicky2_2

Thanks for the feedback - I'll leave it as it is and keep my fingers crossed for an up-turn in the stock market across the water.