The SNOWBALL started on the 9/09/22 with seed capital of 100k. The SNOWBALL buys and hold currently Investment Trusts as most trade at a discount to NAV and have higher dividends than the market average, also there is usually an unloved sector of the market. Mr. Market is a fickle customer, when/if prices rise and therefore the yield falls, the SNOWBALL may invest in higher yielding ETF’s.

I had a previous portfolio of shares, posted on ADVFN where I applied the following.

Buy and hold higher yielding Trusts.

Sell any shares that made a profit, returning the amount to the capital amount invested. e.g.

Invest 10k and if the share made a profit of say £500,excluding dividends sell shares to the value of £500 and re-invest in the portfolio.

Re-invest all dividends back into the portfolio and sell if you are lucky enough to have one of shares receive a bid above market value.

The portfolio performed ahead of plan and the income yield was twelve percent, achieved in a few years. I may one day have time to write an E book detailing the journey.

All trades don’t work out. BSIF had previously been sold at a loss of £1,091 and was subsequently bought back where the SNOWBALL sold at a modest profit.

BSIF had earned around 2k in dividends which has been re-invested back into the portfolio and earned more income. Remember when you start to live off your dividends, there will be very little cash to re-invest, subject of course to the number of years you have to starting to spend your dividends rather than re-invest them. If you start early enough you should have spare dividend income to re-invest after withdrawals.

The SNOWBALL has protected the capital sum invested and modestly increased the total, although this is very little interest as the plan is never to sell any shares, subject to the rules and live off the income.

Progress to date.

The SNOWBALL is well ahead of the plan with the current fcast the year 2031.

Remember the totals will be achieved but subject to market conditions the actual time may be longer than in the plan.