Investement in current climate

ok - mr expert- help me with this one.

i have 3 RAs at the moment-

- RA 1 has given me 11.5% growth in the last 10 years (but has 18% of the premium going towards risk cover)
- RA 2 has given me 1% growth in the last 4 years
- RA 3 has given me -8% 'growth' in the last year

what should i do?
 
wealth and health guru said:
ok - mr expert- help me with this one.

i have 3 RAs at the moment-

- RA 1 has given me 11.5% growth in the last 10 years (but has 18% of the premium going towards risk cover)
- RA 2 has given me 1% growth in the last 4 years
- RA 3 has given me -8% 'growth' in the last year

what should i do?
Click to expand...

It is a bit confusing why as the health and wealth guru you are asking someone else for advice! And if you were genuinely wanting advice you'd do well to perhaps not start it sarcastically, I am not the one who decided to use the name guru, or expert, when joining a forum!

Your advice again would be like everyone else's and that is that your decision would depend on much more than the information you have given me. I fear you may well be aware of this and are just wanting to try and slip me up.

But just for fun... some things you'd need to disclose

* What is being contributed towards these RAs?
* Can you change portfolios on each RA? And further to this where are they now invested?
* Can the risk cover be reduced or removed from that oldest RA to increase the investment allocation?
* If changes cannot be made and you are really better off stopping them then what are the penalties for doing so and would this be less than the possible growth and lower costs achieved elsewhere? You'd use the RIY (reduction in yield) figure quoted on modern products to ascertain the current costs.
* Are these recurring contribution RAs cos if they are then 8% loss in one year is not too serious as long as you are going into a portfolio that is diversified and matches your risk profile? You'll be well positioned when the markets turn....

I would also need to check whether you are saying 11.5% return per annum over the last ten years, or 11.5% over the ten years. Quite a difference.

Too many things to look at that are not mentioned on here but I would be able to get from your policy print or from the companies in question. This is partly what we mean by a full financial needs analysis...
 
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wealth and health guru said:
ok - mr expert- help me with this one.

i have 3 RAs at the moment-

- RA 1 has given me 11.5% growth in the last 10 years (but has 18% of the premium going towards risk cover)
- RA 2 has given me 1% growth in the last 4 years
- RA 3 has given me -8% 'growth' in the last year

what should i do?
Click to expand...

Speak to a financial advisor.

For example, possibly RA3 has had a bad year, but might have a good long term outlook. It's not that simple to judge from the info you've given.

Edit: Lancelot got in before me... and with a better answer too ;)
 
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* What is being contributed towards these RAs?

RA 1- R 654
RA 2- R 560
RA 3- R 266

* Can you change portfolios on each RA? And further to this where are they now invested?

only on RA 3

* Can the risk cover be reduced or removed from that oldest RA to increase the investment allocation?

no

* If changes cannot be made and you are really better off stopping them then what are the penalties for doing so and would this be less than the possible growth and lower costs achieved elsewhere? You'd use the RIY (reduction in yield) figure quoted on modern products to ascertain the current costs.

RA 1- R 1 300
RA 2- R 0
RA 3- R 800

* Are these recurring contribution RAs cos if they are then 8% loss in one year is not too serious as long as you are going into a portfolio that is diversified and matches your risk profile? You'll be well positioned when the markets turn....

yip- recurring

I would also need to check whether you are saying 11.5% return per annum over the last ten years, or 11.5% over the ten years. Quite a difference.

11.5% over the last 10 years
 
Whilst you decide what to do with the money, at least leave it in some type of savings or moneymarket account and earn some decent interest.
 
To be honest, I didn't see much wrong with health&wealth guru's post?

This is a forum & (most) people are smart enough to use it as ADVICE and not take it at face value.
 
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