Now most financial advisers, advice to concentrate on the dog and maybe use the 4% rule for income and ignore the tail.

From the article below.

The Capital Required at Three Yield Levels

If you need $80,000 per year in investment income, the capital required depends entirely on the yield you can sustainably generate.

  • Conservative tier (3% to 4% yield): Roughly $2,286,000. This range covers dividend growth stocks and broad equity funds. You are barely clearing risk-free government bonds while accepting equity volatility. The upside: dividend growth compounds over time, and principal is most likely to appreciate.
  • Moderate tier (5% to 7% yield): Roughly $1,333,000. This range includes midstream MLPs, preferred shares, high-dividend equities, and select consumer staples names. Income is meaningful, but dividend growth tends to slow.
  • Aggressive tier (10% to 14% yield): Roughly $667,000. This range covers leveraged covered call funds, certain mortgage REITs, and distressed credit vehicles. Principal erosion is common, distributions get cut in stress cycles, and the portfolio may shrink even while paying income.

The 8% tier requires exactly $1,000,000 to generate $80,000 annually. That is a number many retirement savers can reach. The real question is whether the holdings at that yield are durable.

If your plan is to have a TR portfolio of 1 million and you are on plan, read no further. If you expect to have a modest retirement pot, read on.

The SNOWBALL majors on re-investing the dividends to earn more dividends. The capital cannot be spent as it would reduce you dividend income, unless there is an unplanned family disaster. The best thing about compound income is it takes a few years to accelerate, so if your investment pot is modest that’s a plus, especially if you can add when possible.

The income for the SNOWBALL will meet the 2033 target and for the year 2027 it will try to match the target but the fcast is for income of 13k meeting the 2032 fcast.

That will be a yield of 13% on seed capital but now that compound interest really starts to accelerate the yield will be 26% before the next ten year period ends.