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AVC returns?
BML
Posts: 220 Forumite
Is it possible to calculate what a reasonable return on £1,200.00 would be on an AVC left from 1993 until 2014?
The amount in hand was a trifle over £3,000.00. Historically would it have done any better elwhere?
The amount in hand was a trifle over £3,000.00. Historically would it have done any better elwhere?
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There are just over 50,000 pension funds still in use (not including unit/trust/OEIC, ETF, ITs and direct holdings). The returns will range from dire to spectacular.Historically would it have done any better elwhere?
As you can hold the same investments in an ISA, investment bond, unwrapped or pension, then its not so much a case that the tax wrapper matters but where you invest. The fact it was an AVC is largely irrelevant as the tax wrapper doesn't make anything. It just contains the investments and it is those that make the money.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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I think a better question would be what would it be worth if you had put it in a savings account: the so called risk free rate. You did have to keep switching, though, to stop it getting 0.1%.0
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Is it possible to calculate what a reasonable return on £1,200.00 would be on an AVC left from 1993 until 2014?
The amount in hand was a trifle over £3,000.00. Historically would it have done any better elwhere?
I calculate that you got a return of about 4.5% p.a. One obvious comparison (I suggest) is with RPI inflation over that period, an exercise I'll leave to you.
Did you have it invested in equities, or cash, or bonds, or what?Free the dunston one next time too.0
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