the ftse last 20 years

tootsy70

My wife has gave up smoking and we were chatting about how much shes spent on them this last 20 years and its shocking to say the least then it just hit me about a comment i seen on here a few months ago about if you invested 100k in the ftse 25 years ago and put in 10k each year then it would be worth 1.8mill or there about today. This got me thinking about my wives money shes wasted and wanted to know if she had of put all that money into the markets on the ftse then how much would it be worth today.

Now when it comes to working this out, i wouldnt have the first clue where to start or even if i did, i still wouldnt know how to work this out so im wondering can anyone work out say on average investing 4k a year starting back in 1993. Really interested in knowing this figer for myself and even showing my kids it so it can give them some incentive not to take this dirty habit up

seklly

If I've calculated correctly (presuming a 4k investment at the beginning of each year since 1993) balance at the end of 2012 would be €101035.81

Using values linked for annual percentage rise/fall: http://www.forecast-chart.com/historical-ftse-100.html

Could be wrong though!

Year Percent Investment (start of year) Profit/Loss Bank (end of year)
1993 24.4 4000 976 4976
1994 -11.1 4000 -996.336 7979.664
1995 21.5 4000 2575.62776 14555.29176
1996 13.1 4000 2430.743221 20986.03498
1997 25.4 4000 6346.452885 31332.48787
1998 16.4 4000 5794.52801 41127.01588
1999 6.2 4000 2797.874984 47924.89086
2000 -6.5 4000 -3375.117906 48549.77295
2001 -14.7 4000 -7724.816624 44824.95633
2002 -23.4 4000 -11425.03978 37399.91655
2003 12.4 4000 5133.589652 46533.5062
2004 8.7 4000 4396.415039 54929.92124
2005 18.1 4000 10666.31574 69596.23698
2006 9.7 4000 7138.834987 80735.07197
2007 2.1 4000 1779.436511 86514.50848
2008 -30.9 4000 -27968.98312 62545.52536
2009 22.1 4000 14706.56111 81252.08647
2010 9 4000 7672.687782 92924.77425
2011 -5.6 4000 -5427.787358 91496.98689
2012 5.8 4000 5538.82524 101035.8121

tootsy70

seklly wrote: »

If I've calculated correctly (presuming a 4k investment at the beginning of each year since 1993) balance at the end of 2012 would be €101035.81

Using values linked for annual percentage rise/fall: http://www.forecast-chart.com/historical-ftse-100.html

Could be wrong though!

Year Percent Investment (start of year) Profit/Loss Bank (end of year)
1993 24.4 4000 976 4976
1994 -11.1 4000 -996.336 7979.664
1995 21.5 4000 2575.62776 14555.29176
1996 13.1 4000 2430.743221 20986.03498
1997 25.4 4000 6346.452885 31332.48787
1998 16.4 4000 5794.52801 41127.01588
1999 6.2 4000 2797.874984 47924.89086
2000 -6.5 4000 -3375.117906 48549.77295
2001 -14.7 4000 -7724.816624 44824.95633
2002 -23.4 4000 -11425.03978 37399.91655
2003 12.4 4000 5133.589652 46533.5062
2004 8.7 4000 4396.415039 54929.92124
2005 18.1 4000 10666.31574 69596.23698
2006 9.7 4000 7138.834987 80735.07197
2007 2.1 4000 1779.436511 86514.50848
2008 -30.9 4000 -27968.98312 62545.52536
2009 22.1 4000 14706.56111 81252.08647
2010 9 4000 7672.687782 92924.77425
2011 -5.6 4000 -5427.787358 91496.98689
2012 5.8 4000 5538.82524 101035.8121

Thanks for that. To me, it doesnt look that much of an investment but like i said before, i wouldnt know much about investments however if the money was took out in 2007 then it prob would have been worth it. In saying all that, it still didnt come out at a loss and it would be a good way of saving money. Once i get back on my feet, might start investing in it for the next 20 yrs so ill be left with a nice sum for retirement.

Procyon

You would also receive dividends of about 2-3%.

freeze4real

tootsy70 wrote: »

Thanks for that. To me, it doesnt look that much of an investment but like i said before, i wouldnt know much about investments however if the money was took out in 2007 then it prob would have been worth it. In saying all that, it still didnt come out at a loss and it would be a good way of saving money. Once i get back on my feet, might start investing in it for the next 20 yrs so ill be left with a nice sum for retirement.

How is that not much of an investment ?

From an investment of 4000 from year 1993 your return at the end of 2013 is 101035.8121. Not including dividends of 2 - 3%

10% exponential rate of return on 4000 each year will not yield 101035.8121.


That in my book is a good investment, assuming the data above is right.