On Jun 15, 12:01*am, "dennis@home"
wrote:
"dennis@home" wrote in message

...







"Man at B&Q" wrote in message
...

8

It's all very well saying you will get x% return for 25 years, but do
you get your capital back at the end? No.

You get an income for 25 years equal to about 2.5 times your initial
investment.

The figure of 12k has been bandied around I believe. So 30k (2.5
times) over 25 years.

Stick the 12000 in a high interest account at 4% compound would give
you 32k.

Now try the same thing with an income from your 12k..

Say 1000pa like you get with the PV.

year

Oops, pasted the wrong bit

Lets try again

1 * * * 12,000.00
2 * * * 11,480.00
3 * * * 10,939.20
4 * * * 10,376.77
5 * * * 9,791.84
6 * * * 9,183.51
7 * * * 8,550.85
8 * * * 7,892.89
9 * * * 7,208.60
10 * * * 6,496.95
11 * * * 5,756.82
12 * * * 4,987.10
13 * * * 4,186.58
14 * * * 3,354.04
15 * * * 2,488.21
16 * * * 1,587.73
17 * * * 651.24- Hide quoted text -

- Show quoted text -

The main point is your capital may be reduced in £ terms but your
income has gone up in line with inflation. (Income is inflation
linked)
So I may be getting a return of £10,000 /year on something worth
nominally £651 in 25 years.
It's also worth more as it's tax free.
I think I'll have my money back in five years.

So. where would you be with the money if left in the bank/BS for 25
years.?Even invested?
The economy is all bollixed up. I don't believe we've seen the worst
yet even.