Chance Of Beating Capital Loss How To

Request

• Bob has £125,000 currently invested in a Stocks & Shares ISA.
• He contributes £800 per month to his ISA.
• He expects to increase his contributions each year, broadly in line with price inflation increases.
• The ISA he holds has an annual charge of: 0.45% pa for balances up to £50k; and 0.25% for funds above that. There are no other charges on the ISA (apart from fund charges).
• His funds are invested: £100,000 in CF Woodford Equity Income A Acc GBP (Citicode KEBA), with a fund charge of 0.1%; £25,000 in BlackRock -Emerging Markets Equity Tracker D Acc (Citicode G6HZ), with a fund charge of 0.25%.
• Future contributions are split 80%/20% into the two funds specified.
• From 01/01/2022 Bob wants to withdraw £5000 a year, increasing in line with RPI
• The tool Bob accesses provides the probability that his investment will result in a capital loss over 5, 10 and 15 year terms.

{
  "contributions": {
    "amount": 800,
    "frequency": "MONTHLY",
    "increase": {
      "basis": "RPI",
      "rate": 0
    }
  },
  "initialCharges": {
    "percentage": 0,
    "amount": 0,
    "contributionPercentage": 0
  },
  "annualCharges": {
    "amount": 0,
    "tieredCharges": [
      {
        "percentage": 0.45,
        "upperLimit": 50000
      },
      {
        "percentage": 0.25
      }
    ]
  },
  "accumulationTaxationBasis": "NONE",
  "funds": [
    {
      "code": "KEBA",
      "balance": 100000,
      "contributionPercentage": 80,
      "adjustment": 0.1
    },
    {
      "code": "G6HZ",
      "balance": 25000,
      "contributionPercentage": 20,
      "adjustment": 0.25
    }
  ],
  "withdrawals": {
    "percentage": false,
    "amount": 5000,
    "increase": {
      "basis": "RPI",
      "rate": 0
    },
    "startDate": "2022-01-01"
  },
  "forecastOptions": {
    "terms": [
      5,
      10,
      15
    ]
  }
}

Result

• After 5 years there is a 32% chance that Bob's ISA (including contributions and withdrawals) will be worth less than the original investment and contributions.
• After 10 years there is a 33% chance that Bob's ISA (including contributions and withdrawals) will be worth less than the original investment and contributions.
• After 15 years there is a 26% chance that Bob's ISA (including contributions and withdrawals) will be worth less than the original investment and contributions.

Please note that this example response is provided to show you the fields and format provided; the numbers do not reflect the results you would receive from the example request above.

{
  "terms": [{
    "term": 5,
    "chance": 32
  }, {
    "term": 10,
    "chance": 33
  }, {
    "term": 15,
    "chance": 26
  }}
}