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effects on compound interest

frenchplonka
frenchplonka Posts: 277 Forumite
in Savings & investments
Ok so I prob missed the boat by 18 years im 35 now but better late than never right...

Ok im after some rough ideas here in regards what possible interest rates i could get for my money im looking to drip feed in around 150 per month into a LV80 product and also invest another 100 in another product I was looking at a compound interest calculator and its asking for the % I will get on the accounts in terms of interest anyone got a rough idea
Sealed Pot Challenge 10 - #571
«1

Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    5-7% (there will be ups and downs so it won't be that every year, but once all your money's been in there at least a decade on average, you'd hope for something like that)
  • dunstonh
    dunstonh Posts: 120,891 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    im looking to drip feed in around 150 per month into a LV80 product and also invest another 100 in another product

    What is an LV80?
    is this an investment product or a savings product?
    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.
  • frenchplonka
    frenchplonka Posts: 277 Forumite
    Sorry I may have got the name wrong its the Vangaurd products
    Sealed Pot Challenge 10 - #571
  • dunstonh
    dunstonh Posts: 120,891 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Compound interest doesnt apply to investments like this. Returns are variable and VLS80 or VLS100 doesnt pay interest.

    You could make 10% one year, lose 30% the next, make 1% the year after and so on and on.
    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.
  • frenchplonka
    frenchplonka Posts: 277 Forumite
    dunstonh wrote: »
    Compound interest doesnt apply to investments like this. Returns are variable and VLS80 or VLS100 doesnt pay interest.

    You could make 10% one year, lose 30% the next, make 1% the year after and so on and on.

    Ah ok well shows you what I know I knew that returns varied and i guess I should have asked historically whats the average return on these
    Sealed Pot Challenge 10 - #571
  • dunstonh
    dunstonh Posts: 120,891 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    frenchplonka wrote: »
    Ah ok well shows you what I know I knew that returns varied and i guess I should have asked historically whats the average return on these

    In any 12 month period:

    VLS80 could be anything between -40% loss to 30% gain.
    VLS100 could be anything between -50% loss to 35% gain.
    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.
  • badger09
    badger09 Posts: 11,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 3 November 2016 at 5:40PM
    VLS 100 performance here

    Removed Broken Link


    Past performance is no guarantee etc etc
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    badger09 wrote: »
    VLS 100 performance here
    I get a server error with that link. Maybe try this one and scroll down...

    https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDV
  • badger09
    badger09 Posts: 11,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    YorkshireBoy wrote: »
    I get a server error with that link. Maybe try this one and scroll down...

    https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDV

    Very odd. It was fine when I posted it:o.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    The graph is pretty much irrelevant to someone wanting to know the likely long term performance or volatility though, as the returns have been broadly pretty positive for equities and exceptionally positive for bonds over that particular five year period.

    Dunstonh's comments in post #7 are probably more useful than such a graph, to someone who - like frenchplonka - has not been following the world's debt and equity markets for a few decades to understand them.
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