Compares returns from cash-ISAs and stock-and-shares-ISAs with inflation
- CPI: price-inflation
- int%: cash-ISA
- FTSE: stocks-and-shares-ISA based on FTSE-All-Share-index tracker funds
- FTSE average annual growth: 7.6% which is 6.3% in real terms
I saved 5000.00 during 2009.
What is the value of those savings at the end of 2019?
Answer: At end 2019 allowing for inflation 6,168
If invested in a savings account: maybe 5,963
If invested in Stock Market: maybe 10,355
Start Year: The calculator increases the amount from the end of Start Year onwards. If I had invested 5,000.00 in January 2009, I should use Start year=2008.
FTSE fund charges:
Percentage change column is FTSE All-share total return minus charges-adjustment.
Charges-adjustment covers tracking discrepancies, annual management charges for the fund, and platform charges. It is the difference between the FTSE All-share total return and the return from the UK-index-tracker-fund-ISA's listed in the table below.
For years 1986-2014 this charges-adjustment is 0.75%, for 2015 it is 0.20%, for 2016 it is 0.85%, for 2017 it is 0.50%, for 2018 it is 0.15%, for 2019 it is 0.30%.
For Legal & General the charge shown in the table applies when sold direct to a retail investor, charge is 0.10% if sold via a platform.
In 2018, majority of monitored funds out-performed the FTSE All Share benchmark even after absorbing annual charges, but an estimate of platform charges was applied.
In 2019, the Legal & General fund monitored here (R Class) provided a far lower annual return (17.78%) than other share classes (e.g. C class - 19.10% ) of the same underlying fund. Tricky.
|Legal & General UK Index Trust R Acc||0.48%|
|Vanguard FTSE UK All Share Index Unit Trust Acc||0.06%|
|iShares UK Equity Index Fund Class D Acc||0.05%|
|Fidelity Index UK Fund A Acc||0.30%|
|HSBC FTSE All Share Index Fund Retail Accumulation||0.17%|
Once a year, at end December, each fund price is compared to the previous year fund price to get percentage increase/decrease.
This is compared to the annual change in FTSE All-share total return to get an estimate of the charges adjustment for the fund. An
appropriate platform charge is then added. These charges adjustments are then averaged.
ISAs: savings-account and FTSE end-of-year amounts are not reduced by tax.
Tax-free ISA's(Individual Savings Accounts) were introduced in 1999.
ISA's were preceded by other tax-free savings - TESSA's (started 1991) and PEP's (started 1986).
Regular savings compounded annually
Table shows returns from regular savings invested in an FTSE-All-Share index fund.
- Annual Amt Start Year End Year
Please Correct Amount