Maths (Accountancy?) Question - ScoobyNet.com - Subaru Enthusiast Forum



Non Scooby Related Anything Non-Scooby related

Maths (Accountancy?) Question

Reply
 
 
 
Thread Tools Search this Thread
Old 11 October 2017, 05:38 PM   #1
David Lock
Scooby Regular
Thread Starter
 
Join Date: Mar 2000
Location: Weston Super Mare, Somerset.
Posts: 14,004
Default Maths (Accountancy?) Question

A pal of mine's wife is having her first child in November. I suggested that he should chuck a pound a day into a fund and when kid was 18 he/she could be surprised to have a decent lump sum to use as they wish. Even with diminishing value it would still be a fair amount.


But how much would it amount to? Say an account was opened with 3% compound interest over 18 years?


Compound interest was never my strong point


David
David Lock is offline   Reply With Quote
Old 11 October 2017, 06:16 PM   #2
scunnered
Scooby Regular
iTrader: (1)
 
Join Date: Sep 2002
Location: Ayrshire
Posts: 1,161
Default

scunnered is offline   Reply With Quote
Old 11 October 2017, 06:22 PM   #3
legb4rsk
Scooby Regular
 
Join Date: Oct 2004
Location: If you're not braking or accelerating you're wasting time.
Posts: 2,549
Default

Give an 18 year old a lump sum to do with as they wish!

Good luck with that.

Their first child.They'll learn.

Great idea but spend it on their education or housing etc but keep control of the purse strings.
legb4rsk is offline   Reply With Quote
Old 11 October 2017, 09:32 PM   #4
David Lock
Scooby Regular
Thread Starter
 
Join Date: Mar 2000
Location: Weston Super Mare, Somerset.
Posts: 14,004
Default

Quote:
Originally Posted by legb4rsk View Post
Give an 18 year old a lump sum to do with as they wish!

Good luck with that.

Their first child.They'll learn.

Great idea but spend it on their education or housing etc but keep control of the purse strings.

Won't argue with that. Bit of a mix I think - decent party maybe first car with the rest for uni etc etc.


Quote:
Originally Posted by scunnered View Post

Thanks for that. Ends up with circa 8,600
David Lock is offline   Reply With Quote
Old 12 October 2017, 07:01 AM   #5
HonestIago
Scooby Regular
 
HonestIago's Avatar
 
Join Date: Sep 2015
Location: Scotland
Posts: 76
Default

I'd be inclined to stick 30-50/month into Vanguard Lifestrategy 80/20 through a shares ISA on the kid's behalf. Returns should be much better than 3% (think 6-8%) and its well diversified - very much an invest and forget fund.

I'd also never give an 18yo a lump sum. I'd say 25 is the right age, I base this on myself (27 now) who would likely have squandered it at 18 but at 25 I'd more likely have re-invested it or used it to buy a flat.

Don't get me wrong, nothing wrong with squandering money and having fun, but it should be your own money IMO - not money that's been gifted!

Last edited by HonestIago; 12 October 2017 at 07:02 AM.
HonestIago is offline   Reply With Quote
Old 12 October 2017, 04:21 PM   #6
David Lock
Scooby Regular
Thread Starter
 
Join Date: Mar 2000
Location: Weston Super Mare, Somerset.
Posts: 14,004
Default

Quote:
Originally Posted by HonestIago View Post
I'd be inclined to stick 30-50/month into Vanguard Lifestrategy 80/20 through a shares ISA on the kid's behalf. Returns should be much better than 3% (think 6-8%) and its well diversified - very much an invest and forget fund.

I'd also never give an 18yo a lump sum. I'd say 25 is the right age, I base this on myself (27 now) who would likely have squandered it at 18 but at 25 I'd more likely have re-invested it or used it to buy a flat.

Don't get me wrong, nothing wrong with squandering money and having fun, but it should be your own money IMO - not money that's been gifted!


Thanks very much for that - very interesting. Had a lot of fun playing with numbers and investment period. 30 quid a month from 0 to 60 (retirement age) gives you over 300k at 7% albeit with some risk. I wonder how this would compare to a regular gold investment although I suspect the tax situation would kill that idea?


Thanks, David
David Lock is offline   Reply With Quote
Old 12 October 2017, 04:35 PM   #7
bioforger
Scooby Regular
iTrader: (1)
 
bioforger's Avatar
 
Join Date: Jan 2002
Location: Pig Hill, Wiltsh1te
Posts: 16,683
Default

Stocks & Shares ISA is definitely one of the better long term options, I always put the max allowance into a work scheme against multiple funds every year/when I can, returning @ 60% annually at the moment. As you say there's risk involved.

Last edited by bioforger; 12 October 2017 at 04:43 PM.
bioforger is online now   Reply With Quote
Old 12 October 2017, 09:10 PM   #8
David Lock
Scooby Regular
Thread Starter
 
Join Date: Mar 2000
Location: Weston Super Mare, Somerset.
Posts: 14,004
Default

Quote:
Originally Posted by bioforger View Post
Stocks & Shares ISA is definitely one of the better long term options, I always put the max allowance into a work scheme against multiple funds every year/when I can, returning @ 60% annually at the moment. As you say there's risk involved.
60% ????
David Lock is offline   Reply With Quote
Old 12 October 2017, 10:25 PM   #9
lozgti1
Scooby Regular
 
Join Date: May 2010
Posts: 2,962
Default

Anyone listen to Radio 2 mensa quiz this morning? Don't cheat if you did!

If a bat and a ball cost 1.10 and the bat was 1 more than the ball. How much did the ball cost?

No cheating!
lozgti1 is offline   Reply With Quote
Old 12 October 2017, 10:30 PM   #10
lozgti1
Scooby Regular
 
Join Date: May 2010
Posts: 2,962
Default

A load of lilies on a pond expand by half every day. By day 48 it was full.

At what point was it half full?

Sorry DL. Just checking everyone's maths!
lozgti1 is offline   Reply With Quote
Old 13 October 2017, 02:49 AM   #11
poffer1
Scooby Regular
 
Join Date: Mar 2016
Location: Surrey
Posts: 95
Default

Quote:
Originally Posted by lozgti1 View Post
Anyone listen to Radio 2 mensa quiz this morning? Don't cheat if you did!

If a bat and a ball cost 1.10 and the bat was 1 more than the ball. How much did the ball cost?

No cheating!
(total-difference)/2
poffer1 is offline   Reply With Quote
Old 13 October 2017, 02:56 AM   #12
poffer1
Scooby Regular
 
Join Date: Mar 2016
Location: Surrey
Posts: 95
Default

Quote:
Originally Posted by lozgti1 View Post
A load of lilies on a pond expand by half every day. By day 48 it was full.

At what point was it half full?

Sorry DL. Just checking everyone's maths!
Oooh, please miss.....me.

The point at which the pond is half full is not a full day....

"I'm sorry. My responses are limited. You must ask the right question".
poffer1 is offline   Reply With Quote
Old 13 October 2017, 01:23 PM   #13
bioforger
Scooby Regular
iTrader: (1)
 
bioforger's Avatar
 
Join Date: Jan 2002
Location: Pig Hill, Wiltsh1te
Posts: 16,683
Default

Quote:
Originally Posted by David Lock View Post
60% ????
lol typo 6-7%
bioforger is online now   Reply With Quote
Old 13 October 2017, 01:27 PM   #14
bioforger
Scooby Regular
iTrader: (1)
 
bioforger's Avatar
 
Join Date: Jan 2002
Location: Pig Hill, Wiltsh1te
Posts: 16,683
Default

Quote:
Originally Posted by poffer1 View Post
(total-difference)/2
Or ball 10p + Bat 1.10 = 1.20, which is wrong as the bat must be 1 more, so = 5p
bioforger is online now   Reply With Quote
Old 13 October 2017, 02:32 PM   #15
legb4rsk
Scooby Regular
 
Join Date: Oct 2004
Location: If you're not braking or accelerating you're wasting time.
Posts: 2,549
Default

Quote:
Originally Posted by poffer1 View Post
(total-difference)/2

Total = 1.10
Minus difference (1) i.e the bat is 1 more than the ball = 10p
Divided by 2 = 5p
legb4rsk is offline   Reply With Quote
Old 13 October 2017, 09:48 PM   #16
scunnered
Scooby Regular
iTrader: (1)
 
Join Date: Sep 2002
Location: Ayrshire
Posts: 1,161
Default

Quote:
Originally Posted by lozgti1 View Post
Anyone listen to Radio 2 mensa quiz this morning? Don't cheat if you did!

If a bat and a ball cost 1.10 and the bat was 1 more than the ball. How much did the ball cost?

No cheating!
Plus VAT?

scunnered is offline   Reply With Quote
Old 14 October 2017, 03:05 AM   #17
jods
Scooby Senior
 
jods's Avatar
 
Join Date: Feb 2002
Location: UK
Posts: 6,644
Default

Quote:
Originally Posted by lozgti1 View Post
Anyone listen to Radio 2 mensa quiz this morning? Don't cheat if you did!

If a bat and a ball cost 1.10 and the bat was 1 more than the ball. How much did the ball cost?

No cheating!
5p
jods is offline   Reply With Quote
Old 14 October 2017, 03:06 AM   #18
jods
Scooby Senior
 
jods's Avatar
 
Join Date: Feb 2002
Location: UK
Posts: 6,644
Default

Quote:
Originally Posted by lozgti1 View Post
A load of lilies on a pond expand by half every day. By day 48 it was full.

At what point was it half full?

Sorry DL. Just checking everyone's maths!
day 47
jods is offline   Reply With Quote
Old 14 October 2017, 11:50 AM   #19
Frosty The Snowman
Scooby Regular
 
Join Date: Jun 2004
Location: Bedfordshire
Posts: 528
Default

It had to be full every day, as if you add half to a number you will never end up with 100%
Frosty The Snowman is offline   Reply With Quote
Old 14 October 2017, 07:17 PM   #20
lozgti1
Scooby Regular
 
Join Date: May 2010
Posts: 2,962
Default

lol

Yep,5p and day 47
lozgti1 is offline   Reply With Quote
Old 14 October 2017, 08:40 PM   #21
bioforger
Scooby Regular
iTrader: (1)
 
bioforger's Avatar
 
Join Date: Jan 2002
Location: Pig Hill, Wiltsh1te
Posts: 16,683
Default

Quote:
Originally Posted by Frosty The Snowman View Post
It had to be full every day, as if you add half to a number you will never end up with 100%
u wot mate
bioforger is online now   Reply With Quote
 
 
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Forum Jump


All times are GMT +1. The time now is 10:05 AM.


 
  • Ask a Question
    Get answers from community experts
Question Title:
Description:
Your question will be posted in: