ESs6 Posted May 15, 2011 Share Posted May 15, 2011 Question to all you finance bods out there. I took out a share Isa back in 1997 for 7k, I then had the pleasure of watching it bomb in the next 2 years and slowly build up. I got my statement yesterday and last year it made just over 20%. My question is if I had stuck my 7k in the building society and not touched it how much approx would it be worth now. thanks in advance Link to comment Share on other sites More sharing options...
Grandad.Malky Posted May 15, 2011 Share Posted May 15, 2011 I don’t know but with interest rates being so low I cant see you making %20 in 4 years if you had put it in a deposit account. If you made %20 this year does that wipe your loses, what have you acctualy made over the 4 years …….. sorry if it seems a bit nosey but my mother was in a similar position and we advised her to bail out rather than to keep taking the losses that share ISA`s were taking. Link to comment Share on other sites More sharing options...
altus Posted May 15, 2011 Share Posted May 15, 2011 If you made %20 this year does that wipe your loses, what have you acctualy made over the 4 years …….. sorry if it seems a bit nosey but my mother was in a similar position and we advised her to bail out rather than to keep taking the losses that share ISA`s were taking. My shares ISA from that time is now worth more than I invested - about 14% up over the 4 years. Advising your mother to bail out when they were at their lowest was the worst thing you could have done. The stock market always recovers over time, you just have to wait long enough - a bit like houses and negative equity. It is nerve racking though - my £14K went to below £9K at one point. Link to comment Share on other sites More sharing options...
REPO MAN Posted May 15, 2011 Share Posted May 15, 2011 Question to all you finance bods out there. I took out a share Isa back in 1997 for 7k, I then had the pleasure of watching it bomb in the next 2 years and slowly build up. I got my statement yesterday and last year it made just over 20%. My question is if I had stuck my 7k in the building society and not touched it how much approx would it be worth now. thanks in advance it made 20% in one year or do you mean over the whole period so far ? Link to comment Share on other sites More sharing options...
max Posted May 15, 2011 Share Posted May 15, 2011 A compound interest calculation (7000*(1.05)^14) based on 5% a year over 14 years gives you £13859.52. The assumption being that interest rates were 5% over the whole 14 years. A more fine tuned calculation would need you to find the rates for each year. Link to comment Share on other sites More sharing options...
REPO MAN Posted May 15, 2011 Share Posted May 15, 2011 ime presuming then it made 20% over approx 14 years or so, from 1997 to now, 20% sounds alot and it certainly is better than a kick in the teeth but what I always look at is over those fourteen years how much has inflation cut into your profit ? say in 1997 you could buy a small family car for 7k, that same car or the equivelent 14 years later in todays financial climate might cost you 8k. in effect although it has earned you 20%, approx £1400-00, in reality you could only really have gained a few hundred pounds, if that i would guess. ime all for investments and in fact i have done it myself but if i was looking at investing 7k over 10 years or more i certainly would want more back than a few hundred pounds ! Link to comment Share on other sites More sharing options...
ESs6 Posted May 15, 2011 Author Share Posted May 15, 2011 thanks for the replies, my Isa made just over 20% last year. Went up from £11600 to £14000 Link to comment Share on other sites More sharing options...
jennycakes Posted May 15, 2011 Share Posted May 15, 2011 You can find out exactly how much by using this useful tool http://www.thisismoney.co.uk/long-term-savings-calculator Link to comment Share on other sites More sharing options...
Grandad.Malky Posted May 15, 2011 Share Posted May 15, 2011 Advising your mother to bail out when they were at their lowest was the worst thing you could have done. . My mother is in her 80`s what good is a long term investment to her? Link to comment Share on other sites More sharing options...
altus Posted May 15, 2011 Share Posted May 15, 2011 My mother is in her 80`s what good is a long term investment to her? Ahh, well, you hadn't mentioned her age. In that case you should have told her to pull her money out sooner. Link to comment Share on other sites More sharing options...
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