Mental accounting as of 2 뿯½ Horizon honesty

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. Separate contributions, growth, fees, taxes and withdrawals. Mixing them hides which lever actually moved.