I have to take a short break from the blog and there will not be any updates until early next week.

The story to date.

The Snowball commenced on 9 Sep 2022. I previously had a similar portfolio posted on a forum which achieved its target ahead of the plan and was then closed for any further updates.
The Snowball’s initial plan was to have a portfolio that returned 5% and with a bit of trading to double the income within ten years.
Since then discounts have widened and as the price falls the yields rise so the plan’s yield is now 7% plus.

2023 Income earned  £9,442.59
2024 Income to date £9,158.00

The comparable targets were

2023 £7,490.00
2024 £8,014.00
2025 £8,575.00

Current fcast for 2024 income is £10,791.00

Next year’s fcast of £9,120.00 and the target of £10,000.00 remains unaltered.

If you have longer than ten years the ‘magic’ of compounding starts to really increase. If you compound at 7%, your income doubles every ten years. If we take this year’s target of 10k, in 20 years time that would equal 40k, a yield on seed capital a yield of 40%.

If you compound your dividend income at 7% it doubles in ten years but one word of realism, when you start to compound your dividends it takes several years before the amount of income starts to accelerate but the sooner you start to compound the sooner that day arrives.
The current Snowball is an accumulation portfolio where you can take more risks as you have time to correct any clunkers.
A de-accumulation portfolio would probably be investing in lower yielding ‘safer’ dividend shares as you move towards that day.

If you have a plan, stick to the plan until it sticks to you, as many people will find out sooner than later that markets never go up forever and the higher they rise the further they are likely to fall.
If in future you are unable to re-invest at 7% or higher there are several options, like share pair trading or buy a tracker where if you can choose the date to sell, you will not lose any of your hard earned.
But I guess that day is a fair way away. GL