Longevity risk as of 2 뿯½ Horizon honesty

A 1% annual fee on a 7% gross path leaves ~6% net — over 30 years the terminal gap versus a 0.1% fee is large, not “one percent”. Restore the last inputs for Longevity risk: “Horizon honesty” and 2 in one session. 8% nominal with 3% inflation is roughly 5% real — the statement can look rich while purchasing power compounds slower.

No. Tool-Lifes pages are educational atlases. Decisions need your goals, constraints and, when appropriate, a licensed adviser. Do I need a high return for compounding to matter? Higher net rates help, but time and contributions often dominate — especially early. Costs and behaviour can erase a “good” rate.

Treat outputs as scenario sketches. Vary contribution, rate, fees and inflation to see which lever moves your goal date. Always ask whether a figure is nominal or real. A high nominal path can still lose purchasing power. No. Illustrations use round teaching numbers. Markets, inflation and taxes change.

In the net rate that compounds. Expense ratios, advice charges and spreads all reduce terminal wealth. From foundations, continue to contributions-vs-rate or fee-drag; for behaviour, open consistency-habit or panic-selling. This atlas page keeps the focus on mechanisms you can reason about: rates, time, contributions, costs and behaviour — not stock tips or promised yields.

For Longevity risk in 2, the figure that stays is 2, named “Horizon honesty.” Sparkle is not a figure. Restore the last inputs for Longevity risk: “Horizon honesty” and 2 in one session. 22

Figures to keep

Year of the rule: 2
Figure in the sum: 2
Item: Longevity risk
Reason kept: Horizon honesty

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