Anyone able to work this out / How much these shares worth in 20 years time, it's my Pension

[Splendidseptember]

Unilever shares, 150 of them, plc, is there a predictor or calculator to show what they might grow into in 20 years please?

It's my Pension... They are small inheritance and currently worth about 7 grand. They are set to re invest I get roughly 2 shares a year.

In short no. They are shares. The stock market can go up and down. While the company's share price over the past 20 years seems to have done pretty well, past trends do not indicate future gains. They may continue to do well in the next 20 years and you might end up a nice little pot, or they may do just ok or you could end up with less, or nothing!. Probably what will happen is that they will earn you more that if you had that money in a bank (which is not difficult)

Never rely on one stock for your pension. you need a variety of investments. So if one company doesn't do that well, then it doesn't have a big effect on your total pot.

You can find loads of information about the company online and broker ratings/analysis of the business etc. This will give you some insight into how the company is positioned at the moment, what the future of it might be.

Exactly what @cozycat1 said. Do you have someone irl you can talk to about financial affairs?

I am not sure how this can be your pension.

Shares might go up - but they would have to go up a hell of a lot to provide a decent dividend to live off. Obviously you could sell them in the future - but that's not a pension then.

And yes - shares can go down.

How long is a piece of string? They could go up x10, they could be worth 10% of what they are worth now. Unilever could go bust and they will be worth nothing. Please don’t rely on them as your pension.

I'm shocked if you believe 150 Unilever shares is going to provide you with anything looking like a pension by the time you retire.

150 Unilever shares aren't a pension. Possibly a holiday when you retire (but that's not guaranteed) but not a pension.

I worded the op badly, they will hopefully be a cushion for pension. Ie I'll get state pension and also maybe 3 grand And year from current job.
I know shares go up and down but these shares have been handed down to two generations now, used where necessary etc.

I'm hoping they will provide that same cushion to me. I am hoping they will accumulate again, compound and I'm sure but so useless with maths as to how they they might look in 20 years?
What's the potential based on the fact they are worth about 7 grand now and that generates about 2 shares a year worth about 45 to 48 each.

I'm also wondering, how many more shares I'd need to buy to generate more.
I'd like to use them as dm did ie for boiler breakdown, car repairs, emergency.. It's something I can leave and not draw on

Any ideas?

It depends on how the business does - if the company were to collapse you would end up with nothing, which is why most investors spread the risk across a umber of different companies. You need to speak to a financial adviser.

Unilever is a huge massive business! It would be astounding if it went under. It sells many many products across many types all over the world.
If it does collapse then so be it but the question wasn't should I buy them etc it's can anyone just help me workout what they might be worth

It's always a good idea to spread your investments.

You are getting about £100 a year and putting that £100 back into the same company.

Are there charges on that? Do they actually reinvest all the dividends into the new shares or is a cut taken?

If you must make plans based on this starting point I would assume they stay level with inflation, anything extra is a bonus. I am not a financial advisor.

The world is changing dramatically. Look at all the brand names we are losing currently.

You can't plan your future based around one set of shares.

There isnt a way to plan, specifically, only to guess that it will continue on as it is now.
Companies change, they sell off parts, they buy new ones, they get sued, they make discoveries, you cant predicted how they will be standing in 20 years, when things change so fast now

The maths:

Let's say you buy 2 shares per year for 20 years

It's 150 plus (2 & 20)
So you would have 190 shares in the future.

Assuming the share price increases at inflation, then in 20 years time, the price is £48 *1.02 ^20 = £71
So they would be worth £71 * 190 = £13,551

However, inflation has also affected the price of things - so even though you have almost doubled in the amount of money they are, inflation will have meant that you have just got 40 more shares.

No-one can tell you how much they will be worth in 20 years. If they say they can, they are lying. Any prediction made would probably be based on previous performance, and that is no indicator as to what might happen in the future.

I bought shares in a company (as I worked for them for many years and we had a sharesave scheme), which are currently worth much, much less than I paid for them. You never know what will happen to any company in the future, so you shouldn't rely on them to plug any gaps in your income.

You absolutely must diversify. Nice to have a few shares like this but you need some proper advice or you will be close to destitute in old age. The state pension is unlikely to be enough to live in, I'm afraid, and these shares will add barely anything.

You only need to look at how share prices fluctuate and dividends change to see how this is a risky proposition.

Shares could rise and fall. Companies go bust, or become massively successful. Dividends go up and down.

The short to medium term is likely to be badly affected by the COVID fallout, but some companies will do well out of the pandemic. I'm sure that if you'd put all your money into PPE or perspex manufacturing at the beginning of the year, you'd have done a lot better than if you'd gone with airlines and restaurants for example.

I bought M&S shares for my godson 26 years ago. At the time, everyone said M&S was the best possible investment there was.

It wasn't the wisest financial decision I've made, put it that way...

If you give me a price for what you would like them to be worth in 10 years time, then maybe I can say I will buy them from you at that price.

No matter what they are actually worth.

And if anyone would like a 'side bet' on whether they think I will get that price, then let me know

Basically how the City of London works.....

@chomalungma

That's very useful and what I was looking for.
Thank you 🙏. So at the moment, if I let them accumulate on their own, they might double to around 13000.

Does your calculation include the fact that at some point, the value of the shares means I will get issued more shares? Eg instead of 2 a year it might go to 3 or 4?

Re m and s, I was left some of those as well. I sold them but kept about 50.

I think the trouble with pensions is yes they might be "worth" double what they are now, but everything we buy will probably cost almost double what they are now. You can make gains greater than inflation but just one company isn't generally the safest way of doing that.

Sorry that should say with "shares in individual companies as pensions"

Thank you 🙏. So at the moment, if I let them accumulate on their own, they might double to around 13000

Yes - but at the same time, assume a new car costs say £15,000, then a new car would cost £30,000

So you would have gained a bit more, because you are reinvesting in new shares, but the 'buying power' of those shares hasn't increased much.

(It's the same trick that Boris Johnson used to say a 'record amount' has been invested in the NHS. Well yes. it's the biggest amount of money in numbers, but not much when inflation is taken into account)