
The SNOWBALL was funded by 100k of seed capital and will earn income of at least 11k this year.
If the seed capital was funded by a SIPP at 20% tax relief the yield would be around 13%
If the seed capital was funded by a SIPP at 40% tax relief the yield would be around 15%
The comparator share VWRP would today, using the 4% rule would provide income of £6,765.
The SNOWBALL will continue to use a running yield of around 11% as your snowball may be funded using a SIPP and or an ISA.
Remember with compound interest it takes a few years to make large differences, so if you are building your snowball, that is good news.

Leave a Reply