Savings Calculator Extra Example
How well are your savings retaining their value?
Compare inflation with cash-ISAs and stocks-and-shares-ISAs
Price-inflation: CPI, cash-ISA: int%, stocks-and-shares-ISA: FTSE
I saved 5000.00 in each of the three years 1997, 1998, 1999.
What is the value of those savings at the end of 2016?
Amount=5000, Start year=1997, End year=1999.
Answer: At end 2016 allowing for inflation 21,355
If invested in a savings account: maybe 28,110
If invested in Stock Market: maybe 33,901
Start Year: The calculator increases the amount from the end of Start Year onwards. If I had invested 5,000.00 in January 1997, I should use Start year=1996.
Single Amount: Make Start Year and End Year the same year.
Percentage change column is FTSE All-share total return minus charges-adjustment.
Charges-adjustment covers tracking discrepancies, annual management charges and platform charges.
For years 1986-2014 this charges-adjustment is 0.75%, for 2015 it is 0.20%, for 2016 it is 0.85%
This most closely fits the performance of these UK-index-tracker-fund-ISA's:
|Legal & General UK Index Trust R Acc||0.56%|
|Vanguard FTSE UK All Share Index Unit Trust Acc||0.08%|
|BlackRock UK Equity Tracker Fund Class D Acc||0.06%|
|Fidelity MoneyBuilder UK Index Fund A Acc||0.30%|
|HSBC FTSE All Share Index Institutional Accumulation||0.17%|
|M&G Index Tracker A Acc||0.46%|
For Vanguard, BlackRock and Fidelity platform charges would also apply; assumed to be 0.25% for 2016.
ISAs: savings-account and FTSE end-of-year amounts are not reduced by tax.
Download spreadsheet equivalent of this calculator SavingsCalculatorToDec2016.xls
Spreadsheet is more flexible than web-page: you can put in different annual amounts.
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).