Should you be worried?

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I've been attempting to get savvy when it comes to my savings and investments.

After much consideration, I set up a Vanguard Fidelity S&S ISA at 80% acc. I'm 29 and hoped I could use the account to ride out the ups and downs and keep it in there for the long term as a pension.

I deposited 5k in there early last year as well as drip feeding £50 in there each month.

The final push to set it up came after reading a great article on Monevator...

"If you can save £5,000 by age 25 and invest it for average returns in the stock market, you’ll have £225,000 in your retirement pot by the time you’re 65, regardless of what you save during the rest of your life."


Which sounds great, BUT the markets continued downfall since opening has had me a little worried :eek:

As mentioned, I don't really want to touch the funds, just keep it in there for 30 years or so.

I'm just getting pretty anxious as I'm losing hundreds of pounds day by day.... Is it really a case of suck it and see, ride it out in the hope it'll balance itself out eventually?

Any advice appreciated :money:
Saving Total 1st Jan 2017: £47,819.92 | 23rd Jan 2017: £49,611.38 | 28th Feb: £50,461.97 | March 2017 : £51,786.13 | April 2017: £53,251.52| May 2017: £54,219.71 | June 2017: £55,857.73 | Nov 2017: 53,375.46 Savings Goal: £100k:j £46,624.54 To go!
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Comments

  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    Any advice appreciated :money:

    Stop looking at the balance if it's giving you sleepless nights. You haven't lost anything until you sell, all else equal you've got exactly the same number of units you had when you bought them.

    All the available evidence suggests the price will fully recover and march on up, to what extent and over what time frame is uncertain but with a 30 year horizon it sounds like you're over reacting.

    I'd be more inclined to look on this experience as extremely valuable, be grateful even, it'll teach you that the markets don't always go up and when they do go down it isn't the end of the world.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • eskbanker
    eskbanker Posts: 31,548 Forumite
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    If you're planning on a 30 year horizon then there will be numerous falls of the proportions seen recently (relatively modest in historical terms), so best not to panic one year in! Buying high and selling low is not a sound investment strategy, so ride it out along with the rest of us....
  • kittenkicks
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    Thank you guys, really helpful responses. I'll stop logging in so much and just let it do its thing!

    Thanks again
    Saving Total 1st Jan 2017: £47,819.92 | 23rd Jan 2017: £49,611.38 | 28th Feb: £50,461.97 | March 2017 : £51,786.13 | April 2017: £53,251.52| May 2017: £54,219.71 | June 2017: £55,857.73 | Nov 2017: 53,375.46 Savings Goal: £100k:j £46,624.54 To go!
  • masonic
    masonic Posts: 23,503 Forumite
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    As mentioned, I don't really want to touch the funds, just keep it in there for 30 years or so.

    I'm just getting pretty anxious as I'm losing hundreds of pounds day by day.... Is it really a case of suck it and see, ride it out in the hope it'll balance itself out eventually?
    Units of your Vanguard fund are cheaper than they were a few weeks ago, so you are getting more for your £50 per month. How bad is that?

    Do you think the events of early 2016 will still be relevant in 30 years time?
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    Check your progress every six months. Or perhaps annually. Anything else is just fretting and fidgeting.
    Free the dunston one next time too.
  • ChesterDog
    ChesterDog Posts: 1,117 Forumite
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    The tide comes in and the tide goes out, but the sea level rises over time.

    Don't expect the tide never to go out. That would be a very worrying scenario.
    I am one of the Dogs of the Index.
  • enthusiasticsaver
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    I too invested a large lump sum at the peak of the market last April/May time so the fund is looking a little sorry for itself - Vanguard LS 60. I do monthly transfers though of £500 and intend investing for a minimum of 10 years so see no point in worrying and have stopped checking every day. At least my monthly investment now buys more units.


    I log on every now and again but with the global market the way it is at the moment I expect to see red for some time to come. It means nothing unless you intend selling.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • Grabs39
    Grabs39 Posts: 364 Forumite
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    I'm in a similar situation at a similar age with just over £5000 (now under £5000...) in pensions. I'm not too worried, and the money I pay in this month will buy a lot more than what I paid in in January 2015 :beer:

    I'm interested by the £5000 becoming £225,000 thing - do you have a link to the article?
  • atush
    atush Posts: 18,730 Forumite
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    Basically, although your initial lump sum will be losing money at today's prices, your 50 quid each month is buying more assets at lower prices.

    Ie Pound Cost Averaging. So swings and roundabouts.
  • Superscrooge
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    Grabs39 wrote: »
    I'm in a similar situation at a similar age with just over £5000 (now under £5000...) in pensions. I'm not too worried, and the money I pay in this month will buy a lot more than what I paid in in January 2015 :beer:

    I'm interested by the £5000 becoming £225,000 thing - do you have a link to the article?

    http://monevator.com/young-people-rich/
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