tetardjones
New Poster
Cash: $ 0.65
Posts: 2
Joined: 09 Jan 2012
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| Bank investments? |
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I'd like some advice please, after feeling that I've been mistreated by a highstreet bank. Almost 2 years ago, I decided to make monthly contributions into an investment fund. Being a complete beginner into this world, I took advice from an advisor at Natwest. He advised that going into a Balaced growth stocks and shares isa would give a good chance of getting higher returns compared to having a cash isa. He assessed our level of risk - our level of risk being that we were willing to risk not getting any returns, but were not willing to risk losing some money. He stated that we would not risk losing money.
Two years later, after seeing my statement, I suspect that I have less now that what I've paid in (though they don't say how much I've paid in on the statement. I had an appointment with a different advisor at Natwest who then explained to me that I have paid in £5,500, and it is now worth just under £5,000, so I've lost 10%. This is a fair shock, considering I was led to believe that I was not risking a loss. This new advisor was much clearer, and I now realise the risk.
Clearly I don't want to carry on making money for Natwest (and will complain to the ombudsman). So now I'm wondering if I should seek an IFA (though they will also take maney from me), or just accept my losses, and put everything in a ISA or fixed long term savings account if I am so adverse to risking losses.
To have lost 10% of my money in two years really seems to be bad in my view, though I have no experience of these things. I could've accepted a smaller loss, considering we are able to invest over a long term.
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Mon Jan 09, 2012 9:16 am |
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plumbers2012
First Time Poster
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Joined: 10 Jan 2012
Location: Everett
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| Investing, Stocks and Bonds |
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Thanks for sharing the post. The challenge is always battling between making it easy for real people and challenging for spammers.
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Tue Jan 10, 2012 6:55 am |
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tetardjones
New Poster
Cash: $ 0.65
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quote:
Yes, and since your post has nothing whatsoever to do with the topic, it would normally be a moderator's call that its purpose is spam. Since you are a new member, you have this one on me, but a repeat may be subject to being deleted.
WTF? Don't worry, I won't be posting again. I get it, don't invest in banks, in which case I look forward to regulations stopping banks from selling these investment packages, in they have such a reputation for having no idea about it/ripping people off, which is what I now hear off everyone.
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Tue Jan 10, 2012 9:26 am |
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Abana
New Member
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Joined: 27 Jan 2012
Location: new york
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The next important step is to diversify your assets across a range of investment styles and types. This is done in order to manage your portfolio's risk effectively. Try to generate more earnings from interest, dividends, and capital gains to ease all tax burdens. Also avoid some of the common pitfalls that can occur during the investment process. The frequent pitfalls that occur are having no plan, not making the proper use of your plan, and procrastination.
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Fri Jan 27, 2012 9:02 am |
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rosenable
New Poster
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Joined: 25 Feb 2012
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Investment banking jobs are some of the most sought after jobs by both fresh graduates as well as those who are already in the field.
No fake signatures - thanks
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Sat Feb 25, 2012 7:13 am |
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fast
Senior Member
Cash: $ 45.05
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Joined: 20 Oct 2009
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quote:
Originally posted by coaster
Point one - you haven't lost anything until you've sold. Your shares may be worth less right now than you paid for them, but it was shares you bought, not money, and you still have all the shares you bought. In the normal course of the economic cycle, the time will come when those shares will be worth more than what you paid for them.
This 'point' surprises me coming from you. I don't disagree with what you're thinking (i.e. that shares may be worth less but still have the same number of them), but I disagree with the assessment that nothing has been lost. Value has been lost--and--you said it yourself "worth less."
In fact, it's the thinking (I thought) that a loss hasn't been realized prior to selling that underlies the psychological cause for why people try to hold on to stocks (for example) when the value dips below what they were worth when purchased. People can easily enter a stage of denial if they think nothing has been lost just because it hasn't been realized upon the sale.
In other words, and as I've heard quipped before, you've lost money when the price drops; selling it is just admitting it.
Oh, and good morning. 
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Sat Feb 25, 2012 1:43 pm |
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fast
Senior Member
Cash: $ 45.05
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Joined: 20 Oct 2009
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quote:
Originally posted by coaster
Perhaps it's a matter of point-of-view, but there is an actual definition: realized gain and realized loss. Realized, of course, comes from the root word real. And so, yes, it's not a real loss (and on the flipside, it's not a real gain) until it's realized.
I think I see what's going on. I equivocated on the word, "real." You were using it in a discipline specific manner (finance) while I wasn't.
PS: Be careful of the etymological fallacy 
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Sat Feb 25, 2012 6:26 pm |
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cbhattarai
Contributing Member
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Location: India
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First thing to keep in mind that no matter what you plan, you should always have some backup plan too..
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Wed Feb 29, 2012 10:18 am |
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richa88
Full Member
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Location: indore
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investment in the banks are very relevant for the future plans.. they provide sure guaranteed benefits...
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Fri Mar 02, 2012 6:43 am |
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Conway
New Member
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Ignoring your investments entirely. I don’t need to say much about this mistake other than it can be very costly. When in doubt, seek competent, objective advice on what to do.
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Wed Apr 04, 2012 7:26 am |
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Acidify
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Joined: 05 Feb 2013
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If you're trying to invest with the bank or other lenders then a planned strategy is essential for you, and backup as well.
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Tue Feb 05, 2013 7:40 am |
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