Calculate inflation

QrizB

20122013 said:

  QrizB 

A sceanrio:

If I want to draw 2% from the £100K  pot.

2% of £100K = £2000  per year

3% is (almost) 1/33rd, which is where the 33 comes from.

2% is 1/50th, so you'd multiply by 50.

£2k x 50 = £100k.

4% is 1/25th, multiply by 25.

5% is 1/20th, multiply by 20.

And so on.

20122013

westv said:

I thought my calc was the simplest (or the one using 0.03 if you calculator doesn't have a % button or you don't know how to use MS Excel).

Your is the simpliest   and  have a better understanding .

FIREDreamer

Cobbler_tone said:

20122013 said:

@ QrizB 

A sceanrio:

If I want to draw 2% from the £100K  pot.

2% of £100K = £2000  per year

£2000 x 22 (??) = 44000?

I am still not sure where the '33' come from ? as it is just repat the digit? ie:

2% will turn to 22?

4% to 44?

Try multiplying by 50...i.e. 2% is a 50th of 100%.

Where is Carol Vorderman when you need her?!

TBF the 'x 33.3333' probably didn't help to explain it to you.
The easiest way is to work out your return from a lump sum and then that is what you can roughly take to stay on an even keel.

£100k x 1% = £1,000
£100k x 2% = £2,000
£100k x 3% = £3,000 etc

I'm sure someone will be along in a moment to complicate it further. 

Ugh, give me Rachel Riley any day. 

20122013

Thanks for all the replies.  helping to keep on track.