Compound to simple interest calculator

bowlhead99

AndyT678 wrote: »

Why do you think that investing in an S&S ISA with Hargreaves Lansdowne is no risk? :huh:

I don't think that was his/her point, ie OP is not saying the S&S ISA was risk free. The point was that the return wasn't available elsewhere on the sums involved without taking risk, so it's fine that risk was taken to produce the return.

By contrast, if there *was* somewhere else that could have produced the 4.5% AER net of tax with no risk, then maybe there would have been some disappointment with the return that was obtained, because it was only obtained by having taken the risk of losing far more.

As mentioned by OP it is only early days yet and so whether annualised rate of return on the first three years of cashflows was great, terrible, or indifferent, it wouldn't prove they were in the right or wrong product. You can only really work that out when you have several more years of data and you can see what happened to your money across a whole economic cycle or two, and check out what returns were available from other competing products with similar risk profiles.

bigadaj

Phosphoric wrote: »

Using that very useful formula I get the following:

Invest the whole amount on day 1 APR = 3.78%

Drip feeding over that whole period APR = 4.5%

So, not a brilliant return but there has been no where else I could have invested the sums involved to get that sort of return with no risk.

Only 3 years in though

What were you invested in, that's a critical part if the equation as your return could be excellent or very poor dependent on what your investment consists of.

Phosphoric

Why bowlhead99, it's as if you live inside my mind. You have expressed my thoughts perfectly:T

bigadaj, the particular investment that I was looking at is Vanguard Life Strategy 40% Equity, so not expecting an amazing return but more secure than others.

I also have Vanguard Life Strategy 60% for Mrs. Phosphoric, whom I expect to live longer than me

Phosphoric

colsten wrote: »

just go to Google Sheets.

Thanks colsten. I run a Linux PC and have openoffice. The spreadsheet version in there is compatible with Excel.