if you start with 300k, provided I have understood HMRC correctly at 6% you'll have a million after 25 years, the capital and income AFTER tax each year is as follows, this includes the current tax bands. You may wish to verify whether there are any errors. at each stage I round the income downwards to the nearest pound.
I didnt make the 10000 in one year! and its a lot less than 167000 capital. I meant 10000 total since I started a few years ago, BEFORE tax, and AFTER defaults. it took many months to build up the portfolio as typically you invest less than 2000 quid a week otherwise it leads to bidding wars.
I note the net profits before tax and after defaults almost every day, and it virtually never moves downwards. but it does sometimes move downwards which occurs when a loan defaults. but after legal process some defaults are fully recouped, some are partially. You know in advance which loans could default as warnings are issued, a borrower has to default for a few months before its a full default.
you can limit how much it moves down after a default by putting less money per loan. the chance of a loan defaulting in a given year is less than the chance of getting a roulette number right. so it does occur but not often.
the maths is totally different from shares. with loans, most loans repay on time every time, and you make money like clockwork, ie exactly 1 calendar month later you get your first profits.
yeah, you're right that it would need to be 6% after tax for 300k to become a million in 21 years.
tax bands make the calculation more complicated, but I think within 37 years 6% would convert 300k to 1 million. 6% with 45% tax equates to 3.3%. you would double your money in 21 years.
the first year you would make 18000 before tax, you would pay 20% on 8000, ie 1600 tax, which is 8.88% tax.
I'll try to tabulate the profits and find exactly how long to make 1 million from 300K with current tax bands extrapolated.
Sorry pressed post! Investment stagnate when you expect more from a partially owned government company makes you wonder what agenda is going on with this share and which institutions are getting wealthy on the back of inside knowledge!
Been waiting months to get out of this share and not lose money.. Got in on the 330 shares and should have sold! but instead bought in as they dropped from their 600 range.. Returned a little profit today and sold out. I have been waiting months. Brutal share this one. Hopefully can now wait for the downside as it seems to constantly drop massively after a rise and will buy back in.. think my cash would've been better off in a fruit machine!! Don't need a pension anyway as this share has taken 10 years off my life!! I aren't a day trader but not sure when this will make steadier progress upwards. Day traders must love this one. Thought this share would just steadily climb but now ive sold out it probably will fly!! GLA
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