Sorry boys and girls, it’s slightly more boring when we look back at the current year and look forward to the new financial year starting next month, when we start with zero, zilch in the pot.
2025/26 Income total should be £13,225.00
The total includes some special dividends, so is not going to be repeatable for the next tax year but as its been re-invested it should earn around another 1k in dividends.
The SNOWBALL is ahead of the plan and the fcast for next year is £10,500.00 and the target £11,240.00
For those with a modest amount to invest, compound interest in year one is £700 but in year ten it’s £5,869, with compound interest you stand to make a similar amount in the last year of your plan than in the first five years.
Whilst a dividend re-investment plan is beneficial in all markets, it’s especially beneficial when markets are crashing. Also better if you are adding funds to your Snowball because you get more shares for your money and therefore more dividends.
The SNOWBALL has a comparator share VWRP.
The current value of VWRP is £152,392, even after this week’s fall not too shabby.
Using the 4% rule that would provide income of £6,117.00.
If you use your 25% TFLS to provide a buffer cash fund so you are not selling shares when markets are crashing, the income figure would be £4,571.76
With your SNOWBALL you wouldn’t want to sell any shares that are providing income, so when you start drawdown, you could take 25% of your income tax free. All subject to current tax rules.
I love the clarity in your writing.