How much would £20000 be worth in ten and twenty years time

donmaico

Mchambers wrote: »

OP.....How long is a piece of string ?:D

I have sodding great ball of the stuff i use for gardening:D

Bravepants

donmaico wrote: »

Mindboggling( Long time since i have done any form of maths).Do you subtract .015 from 1 then multiply by 20000 which gives 19700.How do i get to 14782? (says he absolutely bewildered)
Jims method may not be as accurate but it is a heck of a lot simpler

You do the power first as it has higher precedence. The power is just the repetition of a multiplication. You do one multiplication for each year, hence ^20.

So X*X*X*X*X*X*X*X*X*X is X^10. Each year of inflation (or interest) is mulitplied by the previous years result.

There are simpler methods as pointed out, but you have to know your interest rate/inflation value first to simplify. The method I presented was a general form so you can plug in interest rate and inflation on the fly.

donmaico

Bravepants wrote: »

You do the power first as it has higher precedence. The power is just the repetition of a multiplication. You do one multiplication for each year, hence ^20.

So X*X*X*X*X*X*X*X*X*X is X^10. Each year of inflation (or interest) is mulitplied by the previous years result.

There are simpler methods as pointed out, but you have to know your interest rate/inflation value first to simplify. The method I presented was a general form so you can plug in interest rate and inflation on the fly.

I'll get my head round it eventually

AnotherJoe

donmaico wrote: »

Apologies I meant FA , financial adviser

UK mainly,(although there is a global element),bonds, securities,passive funds,properties 3,20-60% shares . My FA seemed to think Brexit is a very bad thing, particularly the hard version. I would tend to agree with him although obviously, not from his perspective as I have little or no understanding of how businesses or investment funds work.Still, next time I see him he may well suggest changing the portfolio and look abroad rather like John Redwood did with his clients

Brexit is an irrelevance unless most of your funds are in the U.K. which is horrendously risky. Irrespective of Brexit why would you have more than a small % of your funds in U.K. companies? You’ll find most people here have the minority of their funds in the U.K.

I’d be worried that oniy now and only because of Brexit are you / your FA looking at being globally invested. If you are oniy or mostly invested in the U.K. you are missing on huge areas of the economy and industries

I also think you’d have almost zero FAs suggesting you have 50/50 investments cash and then of that 50% investments, a high % in bonds. One at least of you at least is incredibly cautious to a point that is counterproductive.

How long are you 8ntending to hold these investments for.

donmaico

AnotherJoe wrote: »

Brexit is an irrelevance unless most of your funds are in the U.K. which is horrendously risky. Irrespective of Brexit why would you have more than a small % of your funds in U.K. companies? You’ll find most people here have the minority of their funds in the U.K.

I’d be worried that oniy now and only because of Brexit are you / your FA looking at being globally invested. If you are oniy or mostly invested in the U.K. you are missing on huge areas of the economy and industries

I also think you’d have almost zero FAs suggesting you have 50/50 investments cash and then of that 50% investments, a high % in bonds. One at least of you at least is incredibly cautious to a point that is counterproductive.

How long are you 8ntending to hold these investments for.

Five more years of making regular investments and then the idea is to withdraw an annual income of about 4-5%.
My original intention was to put virtually all my savings into an investment pot from which I could draw that income but the FA suggested it would be more prudent to go 50/50.
I had wanted to do something similar to what a mate of mine did some years ago when he went to Santander and asked them if they could provide 5% from 200k investment and so far he has been quite happy.He is retired and has adequate pensions as well .I think the resulting 10k is his holiday money
I was considering adding a rather more volatile fund such as Janus Henderson Global tech into the mix.I used to have an ISA in that fund which I took just before the tech bubble burst so I sold it as I didn't want to lose too much.Now I see it has rocketed since then and I am confused as to why Trustnet only gives it three crowns. There are probably better tech funds out there but given the rise of AI it seems to me there is an ongoing future for those kinds of funds.
.Maybe my FA was responding to my rather less cavalier nature these days.Other funds I held in the past: were Fidelity European, Invesco perpetual European (and smaller companies) and Schroder Midcap 250 all of which he considered too volatile. All the ones he chose instead had reasonable "cautious" records with 5 crowns(stars) apiece, just not for the past year which I guess is sod's law as one can only go by past performance.

Morphoton

If anyone does not own a Scientific Calculator to do Power and Root calculations, an online version can be found in the link below:
http://www.calculator.net/scientific-calculator.html

OldMusicGuy

You might find this easier to use than a spreadsheet:

https://www.vertex42.com/Calculators/inflation-calculator.html

donmaico

Looking at my investment portfolio it would appear that I have 35% weighting in stocks, 51% in bonds and the rest in cash or "other".
As far as the stocks go - 35% in the UK,12% Europe, 32% in the USA Canada and the rest in Asia