Rule of 72 as of · 314

Before the leaflet goes back in the folder, reduce Rule of 72 to one line: , ““Average return = my experience”,” 72. Do not copy the button text as the reason you signed. Stopping buys after a raise, a crash or a boring year.

Rule of 72 sits in the foundations family of this atlas: mechanisms first, products second, hype never. Use the calculator for scenarios, then return to the section pages when you want the vocabulary behind the curve. 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.

Keep the name, the year, and 72. ““Average return = my experience”” is why those three stay.72

Figures to keep

Year of the rule: 72
Figure in the sum: 72
Item: Rule of 72
Reason kept: “Average return = my experience”

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