I put £7,000 into a medium risk ISA with Abbey National nearly 3 years ago. I recieved a statement this morning summarising my account over the last 6 months.
In June 2002, the cash in value was £5250! The cash in value now is....................£4440!!!!![img]images/smilies/mad.gif[/img]

I knew that ISA's werent looking good because of sept 11th, and this war with Iraq, but i had no idea that i'd have lost nearly 3 grand!!

Now i've decided i have to make a decision. Do i cut my losses and cash the ISA in and invest the money elsewhere (keeping it in a shoebox in my wardrobe would probably be safer!), or shall i take the risk that my ISA may improve over its 2 remaining years and leave it where it is?!

Any advice from you helpful people will be most appreciated.

Cheers

Steve

 

Everyone's in the same position Steve, and yes, it's quite frightening what's happened to Isa values over the last year.

Personally, i think the UK is going to go through a tough period over the next six months, so it might deteriorate further. But over the next two years, it could easily recoup what it has lost so far, and if there are any gains, it will be tax free.

And you can't re-invest this year's allowance, you only get one shot. So personally i'd hang in there, even though it's painful. And as far as i'm aware, you don't *have* to withdraw it after three years do you? In which case, it's even more of a "hold".

 

ISA's should be looked at for the long term. Trends dictate the market will become bouyant again though moving your money at this stage will of course result in Financial loss.

Taking the example of my daughtrs the 13 year old has made plenty of money through an Isa where sadly my 3 year old has lost money due to the fact off poor market influences however,it is a long term investment, I'm not too concerned

 

I'm sure you know this already, but once you've pulled it out, you can't ever put it back and get the tax break. So, if you're planning on using your future ISA allowances, you'd be better off leaving it there IMHO.

Of course, it depends on how long you have to wait before it goes back up in value - what exactly happens in 2 years? Do you have some reason for having to pull the money out?

I have ISAs that have suffered similar losses, but I'm leaving the money invested anyway - you have to view them as a long term investment.

A.

 

transfer/switch it, either to cash based or another equity fund- no prob and you'll keep the isa status. same applies to peps- even though they are now getting on no reason why you cant do a switch (same provider- different fund) or a transfer (new provider- same money)

T