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A reasonable return on 150K
ias76
Posts: 23 Forumite
If a lump sum of 150K was invested over a period of 20 years, what would be a reasonable return to expect? 6% per annum net ?
I appreciate anything outside of bank account has a level of risk but would like something with a relatively low risk but reasonable return over the long term.
Thoughts?
I appreciate anything outside of bank account has a level of risk but would like something with a relatively low risk but reasonable return over the long term.
Thoughts?
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Comments
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The usual calculation involves GDP growth (say 2.5-3% lately) plus dividend yield (3-3.5%) plus inflation (2.5-3%) minus charges.Of course all these figures are recent - they have been rather higher in the past 20 years.
Charges are often more than 2% when you add in the hidden ones, so it makes quite a big difference if you invest direct. So does compounding - at a 7% net return you will double your money over 10 years.
Trying to keep it simple...
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