A £100k portfolio

A 9.14% dividend yield turns a £100,000 portfolio into a £9,142.86 annual income. And reinvesting at that rate makes the returns go up quickly.

After 10 years, the annual return reaches £20,092.78. In Year 15, it gets to £31,118.36, and after 20 years, it becomes £48,194.04.

Inflation means £100,000 (or $100,000) is worth less in real terms than it was in 1998. That’s when Charlie Munger identified it as a turning point.

What hasn’t changed, however, is the maths behind the compounding. A 9.14% return does the same thing to £100,000 as it did 28 years ago. 

THE TWELTH MAGPIE

The SNOWBALL, year to date

Income £5,189

Current shares xd £1,831

Cash £343

Total £7,363

The current plan

The SNOWBALL is ahead of plan and this year’s fcast has been updated to £11,261, which is the 2030 target.

If you can compound at 7%, you should double your income every ten years, if you can compound at a higher rate, even 1 or 2%, as your shares increase their dividends to allow for inflation, your journey will also be shortened.