There are three end destinations for your plan, when you reach retirement and want to spend some of your hard earned.

One. Use your fund to buy an annuity, not a good option for your retirement as you have to surrender all your capital

Two. Using a TR plan you use the 4% rule to fund your retirement.

Three. Use a dividend re-investment plan and use the dividend stream to fund your retirement and access your capital if an unexpected emergency occurs.

The Snowball uses a 100k of seed capital and the dividends are re-invested.

The scores on the doors.

The current 2025 fcast for the Snowball £9,120.00

The control share for a TR plan is VWRP, the current value would be

118k and using the 4% rule would provide income of £4,720

VWRP could be higher or lower at the year end but remember with compound interest the gains accelerate every year you re-invest in your plan.

Any readers with time on there side may wish to have two pots, TR and a dividend re-investment pot and the earned dividends could be re-invested in either pot. Similarly if the TR pot was re-balanced any gains could be re-invested in the dividend pot. That depends on whether you are a gambler or an investor.