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PEP Advice please
Destiny_S
Posts: 5 Forumite
I have a PEP which was set up in 1998 with the aim of helping with University fees when (and if) the time comes. I stopped paying into it a fews back and have being paying into an ISA ever since.
The most recent portfolio value shows that it's fallen in value by just under £800 since October 2007. So the question is, should I ride this out and leave the shares there or move the money out now into an interest paying account, or even leave it under the mattress instead?
It's with Insight (who I think were Clerical Medical when it first started), and I have 4731 shares.
The most recent portfolio value shows that it's fallen in value by just under £800 since October 2007. So the question is, should I ride this out and leave the shares there or move the money out now into an interest paying account, or even leave it under the mattress instead?
It's with Insight (who I think were Clerical Medical when it first started), and I have 4731 shares.
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Comments
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Insight are a fund house. What is the fund that you have the units in?
Since you took the PEP out in 1998 you would have seen many ups and downs over the years and the recent one is so far by no means the worst. It really depends on when you want the money.
Also, stockmarket is not one level of risk. Its a sliding scale and you can have non stockmarket investments in a stocks and shares ISA as well.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Sorry for the delay - I'm just catching up wth my household filing!
The Fund is UK Discretionary Fund A Accumulation.
My son is 14, so I have another 4 years before I'd intended to withdraw from the fund (if he goes to Uni that is!)0 -
That isnt a very good fund. Its generally matched sector average but performed below average in recent times. Its higher risk than sector average and heaviest in financials which is why it has been poor in recent times. It also had a change of manager in 2004 and it started to go off the boil in 2005. Linked? maybe. That so often happens. Of course, if financials had not had the bad run then it could have been a lot better but thats the risk you take when you go for a fund like this.
With 4 years to go you should start reducing the risk and indeed possibly fully withdraw from equities into bonds or cash depending on your risk profile. If you decide to phase the risk reduction over the 4 years then you should consider replacing this fund with ones of greater potential as well as lower risk.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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