Can someone calculate a isa for me?

cheerfulcat

Empty_pockets wrote: »

Hi,

Can someone calculate how much an isa would be worth for me please.

Please start with an initial investment of 10K. I know the limits don't allow for this.

10K to start it

Then regular payments of £150 every month for 10 years.
thats 12 payments on the 1st of each month.

I see that as a total of 28K paid in.

what will be the balance after 10 years?

Thanks
Rick.

£34,407.95, assuming a constant 3% interest rate. There's a calculator tool on TMF, here which you may find useful.

King_Weasel

cheerfulcat wrote: »

£34,407.95, assuming a constant 3% interest rate. There's a calculator tool on TMF, here which you may find useful.

That may be a precise answer, and accurate too (I haven't bothered to check). But I'm afraid it's quite useless because it ignores inflation, so you don't know what it will buy.

If we're talking saving rather than investment it's a reasonable bet that the average best interest rate will be fairly close to the average inflation rate, so the initial £10K will be worth a little more, or a little less, than £10K now. It's not sensible to assume a fixed regular sum such as £150 per month over as long a period as 10 years as the real value of the amount will fall, but by an unpredictable amount. But if you assume the £150 will rise each year to match inflation then again you can assume the amount you put in (equivalent to £150 x 12 x 10 at today's prices) will also be close in purchasing power to its value now.

If you want growth you need to invest, but there's a risk - the FTSE100 still hasn't passed its 1999 peak this century.

cheerfulcat

Hello, King Weasel,

The OP had a very specific question -

Empty_pockets wrote: »

what will be the balance after 10 years?

and I gave a specific answer. He didn't ask what it would be worth, he asked what the balance would be.

Milarky

cheerfulcat wrote: »

Hello, King Weasel,

The OP had a very specific question -



and I gave a specific answer. He didn't ask what it would be worth, he asked what the balance would be.

Ha, ha, ha. We don't even know what the measure for inflation will be called in a decade. 'Merv' is my bet, but what would 'Merv' stand for?

King_Weasel

cheerfulcat wrote: »

Hello, King Weasel,

The OP had a very specific question -



and I gave a specific answer. He didn't ask what it would be worth, he asked what the balance would be.

Fair enough, cheerfulcat.

You might understand the distinction, but I'm not sure the OP did - hence my contribution. Sometimes it's reasonable to point out that an answer may not be as useful as it seems because the question was not framed to extract what the questioner thought it would.