Turkish Living Forums - Capital reduction

16th August 2007, 12:35

#11

jcrian

Moderator

Re: Capital reduction

Quote:

Originally Posted by Mr Turkey

Nice spreadsheet - I couldn't do it !

Sorry to be the dark cloud ( again ) but I would caution people to only regard this as a guide.

Be sure to include the effects of taxation on your deposit and interest earned, which reduces the figure, and allow for inflation when estimating your interest rate.

How you do this on a spread sheet someone smarter than me will have to answer.

MR TURKEY

This is a bit hard to predict as who knows what inflation,tax or interest rates are going to do in the future, so have left that out of the equasion.

I just update my spread sheet each year just to see how long money could last.I estimated I had another 30 years to live when I first wrote a spread sheet.

I suppose you could put the figures in as Turkish Lira and Turkish interest rates to see how the money would do.If you do this it may be wise to deduct what you have to pay in tax before you get excited with the great return.

Last edited by jcrian : 16th August 2007 at 12:46.

16th August 2007, 12:51	#12
Mr Turkey London & Bodrum member.	Re: Capital reduction Well I'm impressed with the sheet in any event , and there is no way I can do it ! Good idea to share it on the forum. With income tax and inflation factored in you might find that balance figure declining over the years instead of increasing. Do you reckon you can come up with one that allows these items to be added ? I guess that's a real tall order ..... Just thought I would ask !!! Oh how I hate tax . MR TURKEY

Sponsored Links

16th August 2007, 12:55

#13

jcrian

Moderator

Re: Capital reduction

Quote:

Originally Posted by Mr Turkey

Well I'm impressed with the sheet in any event , and there is no way I can do it ! Good idea to share it on the forum.

With income tax and inflation factored in you might find that balance figure declining over the years instead of increasing. Do you reckon you can come up with one that allows these items to be added ? I guess that's a real tall order ..... Just thought I would ask !!!

Oh how I hate tax .

MR TURKEY

Well if I knew what the inflation figures were (I don't believe the government figures) then yes it could be added.But as this figure is an impossible figure to predict I don't see much point.Tax could be added but it would depend if you had another income to take into account.

16th August 2007, 14:11	#14
Rachels100 Senior Member	Re: Capital reduction I added inflation by changing the amount you are withdrawing each year by making it £500 more each year. my total figure declined rapidly over the years, but I still had loads money left after 30 years.

16th August 2007, 14:14	#15
Rachels100 Senior Member	Re: Capital reduction To work out interest, just change it to a lower rate,, say you are getting 4% after tax, change the interest to 4%.

16th August 2007, 14:27

#16

jcrian

Moderator

Re: Capital reduction

Quote:

Originally Posted by Rachels100

I added inflation by changing the amount you are withdrawing each year by making it £500 more each year. my total figure declined rapidly over the years, but I still had loads money left after 30 years.

The secret Rach is to get the last year with a capital figure of zero unless you want to be the richest person in the graveyard.Difficult to predict when that final year will be especially when you are as young as you!

Last edited by jcrian : 16th August 2007 at 14:28. Reason: spelling

16th August 2007, 15:33	#17
lagirl1961 New Member	Re: Capital reduction Thanks for that, Had no probs saving the sheet. Cheers

16th August 2007, 21:11

#18

sparrow

Nadine in disguise

Re: Capital reduction

Nice spreadsheet,
I do like stuff like that, but what is the meaning of the graphics below ?

Just for fun I added 2 percent (let's call in inflation) to the amount you withdraw every year (just as Jane ,but I used a percentage),.... it still looks nice

For those who like to see it, I attach it, I called it capital-reduction-withinflation

Attached Files

capital-reduction-withinflation.xls (38.0 KB, 116 views)

16th August 2007, 23:02

#19

Mr Turkey

London & Bodrum member.

Re: Capital reduction

Quote:

Originally Posted by sparrow

Thanks very much, the difference can be staggering. 2% inflation is an excellent rate.
Now modify the interest rate down to 4% to account for tax and you get a very different picture.

£140,000 different.

Cheers for the work.
MR TURKEY

17th August 2007, 00:12	#20
Gazgaskell Gaz	Re: Capital reduction I agree, a superb spreadsheet; remember though that money invested in Turkish banks can generate a typical 17.5% compound daily interest (garranti bank on about £8K) risk free (higher 20%+ possible with some risk) so the returns for around £60k invested can generate approx £175 pw, with slightly increasing capital. So anyone retiring to Turkey with minimum UK state pension (us!) and a bit of capital from house sale can be be quite well off-yet retaining a property with increasing value plus a good income plus capital growth! Can't be bad.