What’s your money doing when you’re not looking?

Ever wonder where you should be investing? Should you be putting your  money in the “safety” of premium bonds, or investing in “riskier” stocks and shares?

I’ve looked at the return on a £1,000 investment from 1970 to date, and where you should have put your money.

Crazy investments that didn’t make the cut due to scale issues – £1,000 of BitCoin – return of c. £16m (even in the short time its been about) and 502.5 £1.99 R2D2 toys from 1977 – return of £160,804 (because flooding the market wouldn’t have reduced the value at all).

NB – the equity and gilt (UK government bond) investment assumes that income would have been reinvested.

Sources:

https://www.gov.uk/government/news/uk-house-price-index-hpi-for-july-2016
https://static.halifax.co.uk/assets/pdf/mortgages/pdf/50-Years-Of-Housing-UK-20th-January-2010-Housing-Release.pdf
http://www.ukhousingreview.org.uk/ukhr1011/updates/pdf/11-047ab.pdf
http://www.moneysavingexpert.com/savings/premium-bonds-calculator/
http://hungrydummy.com/media/pdf/EquityGiltStudy2016.pdf
http://www.nationwide.co.uk/about/house-price-index/download-data#xtab:regional-quarterly-series-all-properties-data-available-from-1973-onwards
http://www.moneysavingexpert.com/savings/premium-bonds-calculator/
http://swanlowpark.co.uk/savingsinterestannual.jsp
http://www.lbma.org.uk/pricing-and-statistics
https://www.bullionbypost.co.uk/gold-price/gold-price-history/
https://www.measuringworth.com/ppoweruk/

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