Let’s look ahead using 100k of capital, you will most probably haven’t got 100k but it’s easier to make a pro rata comparison.

Option one: A Snowball which invested in a portfolio of Investment Trusts/Etfs compounding at 7%

Option two buy a passive tracker we will use VWRP that fluctuates with the market but compounds at 7%.

After ten years

Snowball Income 14k

Tracker using the 4% rule 8k

After twenty years

Snowball Income 28k

Tracker using the 4% Rule 16k

If you are lucky enough to have 30 years

Snowball Income 56k

Tracker 32k

So what looked liked the high risk strategy wasn’t at all.

Rudyard Kipling

If

If you can keep your head when all about you are losing theirs and blaming it on you:

If you can trust yourself when all men doubt you:

But make allowance for their doubting too:

If you can wait and not be tired by waiting:

GL