Please help me stay invested! I’m wobbling

BatWing

Hello all. Long time lurker and very occasional poster! 

I sincerely hope I’ve posted this in the right place. Shout at me if I haven’t. 

I have 375k invested with a decent wealth management company. Used them for various things for decades so entirely happy with them. Unlucky for us, we chose January to invest a large sum : ( 

so, my issue. I’m this close (picture thumb and index finger together), to pulling all my money out. That 375k is now circa 329k and yep, I’m panicking. I KNOW the right thing to do is stay invested but then I panic because corona is just so unprecedented and what if I lose loads more? What if it never ever comes back up? I’m all prepared to call tomorrow and ask for a withdrawal and closure form - meaning an actual loss of 45k or more. 

I am not sure if my mental health can take staying invested - and I’m not actually a person of shaky mental health. I’m generally philosophical. We don’t need the money for 4-5 years so it’s a long ish term investment but Christ - if we lose loads more? Can’t take it! 42% is in stocks and shares and the rest is in bonds etc 

so, what would your advice be to me? I’d be grateful for any thoughts. Thank you 

eskbanker

BatWing said:

what would your advice be to me?

You've answered your own question:

BatWing said:

I KNOW the right thing to do is stay invested

However, it's one thing to know that from a logical and rational perspective, and another to be able to tolerate this psychologically, so if this is really causing you angst then it might make more sense (in health terms, not financial ones) to cut your losses and liquidate.  If it's any consolation, 42% in equities is relatively low risk and many will be facing much more significant paper losses than you in percentage and/or absolute terms....

Socajam

I would take out 150 and invest with NSandI - the maximum in Premium Bonds (the most you can do is win the million jackpot) and the remainder in bonds. Leave the rest in the stock market.
The worst happens, you still have some money.
I personally that think the stock market will most definitely go lower and get worse before we get over the virus.  If you heart is not strong, do something now. The virus is just starting, we have quite a way to go yet.

LobsterMemory

So you're suggesting OP moves from a 58:42 bond:equity ratio to 45:55 when he's at his most nervous?

BatWing

Thank you both 

it’s not easy to just pull money out and put elsewhere as we are with a wealth management company. And yep, it’s the psychological aspect of it ... I’m on the verge of deleting the app ( yes they supply a bloody app which is like torture as how can you not check it daily?!) but then I panic about not knowing just how much it’s lost. I also am concerned at what they’ll think if I just pull the lot out and stick it under my bed (metaphorically). Thrill think I’m an absolute idiot 

but mentally... I’m struggling. Panicking maybe. And there’s a lot to be said for having some peace of mind 

masonic

If you were to call tomorrow and ask for a withdrawal form, that doesn't commit you to following through, and doesn't commit you to withdrawing the lot if you do decide to withdraw some. You'll probably receive the form a couple of days later, you can make your decision then. By the time you fill out the form, send it back and your request is actioned, we'll be at least a week further on, and I suspect we are now very close to maximum fear, so are approaching the bottom of the market.

The real question is, do you believe we can recover from this and things will return to normal? If not, then perhaps it won't really matter what your investments are worth.

BatWing

I’ve no idea what recovery looks like but thinking sensibly, the market has always bounced back. But I can read this and hear it and I still wobble. My husband is happy to do whatever I want to do so I’m trying to think what is for the best. 

EdGasketTheSecond

It's tough to take a definite loss but if it is going to worry you then get it over with, take out some or all the money, and put it somewhere where you aren't going to worry. It sure was unfortunate timing but it happens. Back in 87 my manager invested the Friday before Black Monday, having deliberated for ages. The markets recovered from that but there is no guarantee as to how long it might take to get over this one.

masonic

EdGasketTheSecond said:

there is no guarantee as to how long it might take to get over this one.

Worth remembering this is a bond-heavy portfolio we are discussing in this thread. so it is likely to bounce back quicker than equities.

BatWing

It’s something like 25k in a junior isa, 15k in sipp, some bond stuff and then 42% in the market. I have spoken to my financial planner and he says what you might expect him to say! Their advice is to stay invested etc etc and he’s all reassuring within the realms of what he can actually say and I feel better and then I panic again. Ugh.. I’m literally 50/50 on it 

port_of_spain

BatWing said:

I’m on the verge of deleting the app

This is a great idea