What should I do?

Hi everyone,

I came across this website, and decided to join, as I'm having some slight Financial concerns that I'd appreciate idea's and opinions from other people.

I've had my Managed Investment with Colonial First State now for about 3 years. I opened the account up in 2007 with high hopes, but 2008 and 2009 were terrible for the economy, and my account is now worth about half of what I put in, in total. I've got this account split up into 3 classes - High Growth, Property Securities and Global Resources.

At the moment, I'm looking at investing about $30,000 into another type of investment, because basically my MIF has pretty much sat their for the last 2 years. I've earned some good dividends, but now dividends are much lower, and the investment as a whole isn't growing a whole lot.

What would people here recommend I do? Wait out a bit longer for the economy to start shooting up, or, cut my losses and try for another investment? Should I take a third of my total savings, put it into a high interest account (being more secure), put another third into shares, and then leave the other in the MIF? I'm not to sure..

My aim for now is capital growth. I won't be needing the money any time soon.

Thanks.
Paul.

 

Hi Paul

By high growth, do you mean geared managed funds? Having both geared funds and property securities during the downturn, was bad luck. The crash took everybody off guard.

Is this 30K on top of your other investments?

If you hadn't noticed, the All Ords is 2000 pts. above bottom. The share market recovers Before the economy. Thats because the market is future looking. If you wait for the economy to recover, its then too late.

Portfolio contruction can contain different assets. Cash, Bonds, Property, Aus Shares, OS shares, Commodities. Holding Cash, FI and Bonds in a downturn means a lower loss, but less gain in a boom. You have to decide where your 'comfort level' is.



Johny.

 

Don't leave.

Do what you do best mate. If you think that you can do it then stay and for your time to shine because when that happens, you'll really have a good ROI but if you can see that you are failing then it's time to shift as long as you know what your next project is and you are good at it.