Remember a bad plan is still better than no plan because without a plan you have no end destination.

When investing your hard earned the final destination is your income when your retire, what ever age that is in your plan.

The only way to have an end destination is to have a dividend re-investment plan, you may not know the exact end figure but you can pencil in some figures with a high degree of certainity.

The Snowball’s current ten year plan is income of £16,519 or an income on 100k invested of 16% per year.

The other end destinations for a Total Return plan.

Buy an annuity which could be any percentage you want to include.

Remember if your retire at the wrong time, the following annuity might be offered:

Canada Life figures show the 65-year-old with a £100,000 pension pot could buy an annuity linked to the retail price index (RPI) that would generate a starting annual income of £3,896. That’s up from £2,195 in the New Year following a 77% spike in rates this year.
Oct 22.

You have to surrender your capital so not an option for me.

An alternative would be to buy UK gilts and as long as you buy near or below the redemption price they are risk free if you hold to maturity. Current yield around 4.5% but you keep your capital to pass on to your nearest and dearest.

The other option is to use the 4% rule where you withdraw 4% of your capital and hope that the cash fund doesn’t expire before you do. You need a cash buffer for when the next market crash occurs.

The remaining funds could be passed on to your nearest and dearest.

Like life it’s a gamble.

For anyone making a plan, you could include both income and Total Return, switching into income as you get closer to retirement.

Lifestyling has proved to be a disaster for many, especially with compound growth you will make more money in the last few years, with a dividend re-investment plan, than in all the early years.