Hi Kevin. Thanks for your kind comments. I assume you are referring to cash ISA rates? I guess it really depends on your investment timeframe and your attitude to risk.

If you were thinking of withdrawing quite soon anyway, then it could certainly make sense to transfer some of your money into a cash savings account, as this will reduce the risk of fluctuations reducing the value of your investment at the time you want/need to access it. On the other hand, as I’m sure you know, if you switch from Nutmeg into cash savings, you will forfeit some of the potential upside if share values start rising again in the years to come. Historically speaking, in most years stock market investments have outperformed cash savings, often by a considerable margin. But there are never any guarantees, of course, and you can certainly lose money in the short to medium term (at least).

Nobody really knows, and of course a lot depends on your personal circumstances, which (as you say) I can’t really comment on. I will say that I certainly wouldn’t criticize you if you decided to switch some of your Nutmeg investments to a cash iSA, especially if you are working to a shorter timeframe. Keeping some of your Nutmeg investment in place would at least give you the potential upside there with an economic recovery in the longer term.

These are uncertain times, of course. Personally I am hoping for a relatively quick resolution to the war in Ukraine, which I think would give the world economy a big boost. I am hopeful that this may happen later this year. But I am an optimist by nature, so please do bear that in mind!

You’re welcome! Thanks for the suggestion 🙂