Irish Life Products - affected by nationalisation?

talkin

is it time to take money out of this account?

Kennie1

talkin wrote: »

is it time to take money out of this account?

In what context do you ask? Need more information! What fund are you in, how long are you saving, what time frame did you sign up to, why do you think it might be time to cash it in etc?

talkin

dont know what fund im in started it april 05. theres not much in it. dont know how long im supposed to stay.

talkin

i could do with the money now to be honest and it does have a cash in value online but would i regret cashing it in now because the projected values look great-but thats in like 15years:D

Kennie1

talkin wrote: »

i could do with the money now to be honest and it does have a cash in value online but would i regret cashing it in now because the projected values look great-but thats in like 15years:D

Think you may have answered your own question there!

These type's of investment plans are supposed to be long term saving plans for 10 or more years and are usually used for education funding and life savings. You had better look on line and check that you are not invested in a property fund as this was a popular choice for investment back in 05, you have other options to switch into if its invested in property but you would need to speak to your financial advisor before doing this.

Gunsfortoys

talkin wrote: »

dont know what fund im in started it april 05. theres not much in it. dont know how long im supposed to stay.

I would advise you to speak with a qualified advisor ASAP, preferably a multi-agency intermediary and they can advise on the different products out there in every company rather than an agent for Irish life etc

Arciphel

Quick question - my understanding is that they won't be affected as they are a separate part of the business, but does anyone expect there to be a knock-on affect to the unit prices of Irish Life pension funds due to the imminent likely nationalisation and the suspension of share trading? Thanks.

talkin

and now there on the news :0

Stinicker

Every bank in Ireland is now state owned, Ulster Bank is owned by the UK Government, people with money now need to start looking hard at places like Singapore and Switzerland.

murphm45

The simple answer is no, so you're right

There might be a knock on effect if any of the funds have invested in Irish Life shares (i think any updates they give have to detail self investment so these might give you an idea of how big any fall might be but i'm not sure on this, it might be just the published accounts that need this)

talkin

what does the current situation mean for my money in il&p. i tried calling them today but never got through. anybody know?

Arciphel

Cheers Murph, I thought as much but just wanted to be sure. You are right, as part of ring-fencing they are not allowed invest in themselves.

GerardKeating

Arciphel wrote: »

Cheers Murph, I thought as much but just wanted to be sure. You are right, as part of ring-fencing they are not allowed invest in themselves.

But they might be effected by the suspension of the AIB/BoI shares.

tallaghtfornia

I had 3 of these plans, 2 protected bonds and 1 property that I lost my arm on I'm lucky in away that I will still break even on my protected bonds, I went to speak to a financial adviser is PTSB two weeks ago and he was absolutely useless, so with this and the fact they are been privatized I have lost a faith in the Irish Banking System, I think at this stage I'm just going to put my money in the Post Office until I can find somewhere suitable that I can get a better return on my money

talkin

tallaghtfornia wrote: »

I had 3 of these plans, 2 protected bonds and 1 property that I lost my arm on I'm lucky in away that I will still break even on my protected bonds, I went to speak to a financial adviser is PTSB two weeks ago and he was absolutely useless, so with this and the fact they are been privatized I have lost a faith in the Irish Banking System, I think at this stage I'm just going to put my money in the Post Office until I can find somewhere suitable that I can get a better return on my money

can i just apply to take whats in there out now? iv already lost nearly 600 and like i said theres not a lot in there and i need the money. iv been stressing over money lately

tallaghtfornia

can i just apply to take whats in there out now? iv already lost nearly 600 and like i said theres not a lot in there and i need the money. iv been stressing over money lately

Hi talkin,

I just filled in the forms to claim them back I got online, I’m no economist but as I say I have no faith in our banking system anymore, So therefore I'm just going to open a Post office account and place my money in there

Are your bonds protective?

talkin

I don't know if there protected, I'm so annoyed by this. I should have just saved weekly with credit union or post office I'd have 600 more than I do today

stantheman8

Hey folks - on a slightly different, but related, topic:
....I have an SSIA account with Irish Life that I've continued to invest in.

It's equity based so has obviously dropped in value over the past couple of years - so ideally I'd like to leave it there to catch the upswing (optimist that I am :rolleyes: ) ...but I am concerned over the latest news around IL&P.

Can someone tell me if this fund falls under the government savings guarantee or do different rules apply?

talkin

I'm thinking it's time to just cut our losses now, I could be wrong. I dont even know if a bonus save account is different u know I have the first letter I got from them stating that I could leave them at anytime without penalties but If I stayed for seven years I'd get 25% bonus of what I put in the first year but I think if I do wait till next year I'l have lost more by then than it's worth getting the 25%

tallaghtfornia

I don't know if there protected, I'm so annoyed by this. I should have just saved weekly with credit union or post office I'd have 600 more than I do today

Heres your Brother!!

talkin

Now what to tick on the withdrawal form 1.specific need for money. 2.investment performance. 3.my circumstances have changed. 3.plan matured. ?? I know there's going to be a problem whichever one I tick anyways. And on top of losing 600 at least of my money there's important points to note-apparently exit tax may apply to withdrawals!!! Come on like in fairness

coylemj

stantheman8 wrote: »

Hey folks - on a slightly different, but related, topic:
....I have an SSIA account with Irish Life that I've continued to invest in.

It's equity based so has obviously dropped in value over the past couple of years - so ideally I'd like to leave it there to catch the upswing (optimist that I am :rolleyes: ) ...but I am concerned over the latest news around IL&P.

Can someone tell me if this fund falls under the government savings guarantee or do different rules apply?

You can't have it both ways - equity funds carry the risk of share prices falling so you lose money and if shares go up you're in profit, these type of funds have no Govt. guarantee, you're on your own.

The financial institution who sells you the product may include a capital guarantee which means that you cannot get back less than what you invested but this guarantee comes with a cost which effectively dampens the upside so you won't do as well in the good times as someone who takes the full risk.

coylemj

talkin wrote: »

is it time to take money out of this account?

The Life part of IL&P (Irish Life Assurance) is completely ring-fenced from the banking side (Permanent TSB) so even if there was a complete meltdown in the mortgage market, Irish Life savings and pensions funds would not be affected. There was a guy from Davys on the radio yesterday who pointed out that the reserves requirement for Life assurance companies is way above that for banks and that Irish Life is 100% secure.

An example of how Life business is kept separate from other wings of the business was illustrated back when ICI collapsed in 1985 and almost brought down AIB. The life part of ICI was a separate company and was sold off as a profitable business to Prudential who used it as their entry to the Irish market while the ICI general insurance company had an administrator appointed and it was gradually wound down.

Irish Life funds are invested in equities, property and gilts all over the world so the performance of the company (IL&P) itself and it's share price has very little if any effect on the money being held by them for their clients.

stantheman8

coylemj wrote: »

You can't have it both ways - equity funds carry the risk of share prices falling so you lose money and if shares go up you're in profit, these type of funds have no Govt. guarantee, you're on your own.

The financial institution who sells you the product may include a capital guarantee which means that you cannot get back less than what you invested but this guarantee comes with a cost which effectively dampens the upside so you won't do as well in the good times as someone who takes the full risk.

Thanks for the response MJ.
I do understand there is risk on the equity side ....have been riding that roller coaster for a while now.
My concerns are around risk to my fund given the current risk to IL&P. So if IP&P were let go wallop, or if they were the subject of a "run", then is my money still safe (obviously outside of share price fluctuations)?

coylemj

stantheman8 wrote: »

Thanks for the response MJ.
I do understand there is risk on the equity side ....have been riding that roller coaster for a while now.
My concerns are around risk to my fund given the current risk to IL&P. So if IP&P were let go wallop, or if they were the subject of a "run", then is my money still safe (obviously outside of share price fluctuations)?

They're just announcing on the radio that IL&P is getting an injection of 4 billion in order to sort out it's capital requirement so clearly it is not going to be 'let go wallop'.

If there is a 'run' on IL&P then the share price will collapse to zero as happened Anglo but this will have no effect on your savings. You need to be watching the share price of IBM, BP, Aviva, Nestle etc. and not the share price of IL&P.

stantheman8

That clarifies MJ - many thanks.
As Forrest Gump would say ...I guess that's one less thing to worry about!

amdublin

talkin wrote: »

. And on top of losing 600 at least of my money there's important points to note-apparently exit tax may apply to withdrawals!!! Come on like in fairness

Exit Tax is nothing to do with Irish Life

Exit tax is a revenue requirement.

amdublin

Ps. To answer the original question:

No. There is absolutely no risk to your money invested with Irish life. Your money is held separately and is ring-fenced. There is no risk to your money due to the nationalization. **

talkin

amdublin wrote: »

Exit Tax is nothing to do with Irish Life

Exit tax is a revenue requirement.

yes but we'r taxed on everything!