If you invest wisely
you could reasonably expect to make 12% a year, so compounded over 50 years would leave you with £173,401.
However in real terms, if you take inflation to be 3.5% a year on average, you'd only be getting a net percentage of 8.5%, which would leave you with £35,451 in real terms (i.e. buying power).
However - if you invested your £600 in a SIPP, the government would pay back the income tax that you already paid on it, so you'd essentially be investing nearer £750, so at year 50, you'd have £44,314 worth of buying power.
So yes - you'd have a lot of change.
Marvel at the wonders of compound interest - and start a pension if you haven't already. The earlier you start the quicker it snowballs.
/not an independent financial advisor, but had it all explained to me recently blog
(
HoratioFellatio Taking the the out of psychotherapist, Tue 6 Nov 2007, 19:54,
Reply)
12% a year is bloody optomistic unless you are prepared to take some fairly hefty risks...
If you are looking at a mixed bag of UK/European/USA shares, with a wee bit of something more speculative like Japan or Emerging Markets, a reasonable expectation would be 8-9% after investment costs.
I am an independent financial adviser - so gaz me if you need anything
/desperate tout for business - c'mon, its a bit slow atm.
(, Wed 7 Nov 2007, 17:21, Reply)