Rule of 115 as of · 239
In a household notebook, Rule of 115 is judged from . The line is “Name the cash flows” and the figure in the sum is 115. A blinking gain on a screen is not the reason. In the net rate that compounds. Expense ratios, advice charges and spreads all reduce terminal wealth.
What is rule of 115 in one sentence? 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.
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.
For Rule of 115 in , the figure that stays is 115, named “Name the cash flows.” Sparkle is not a figure.115
Figures to keep
- Year of the rule
- 115
- Figure in the sum
- 115
- Item
- Rule of 115
- Reason kept
- Name the cash flows