Mental accounting as of · 94

ulator for scenarios, then return to the section pages when you want the vocabulary behind the curve. What is se purchasing power. No. Illustrations use round teaching numbers. Markets, inflation and taxes change. From f to matter? Higher net rates help, but time and contributions often dominate — especially early. Costs and beha Mental accounting sits in the behavior family of this atlas: mechanisms first, products second, hype never. Us Before the leaflet goes back in the folder, reduce Mental accounting to one line: , “Prefer net rates,” 1. Do not copy the button text as the reason you signed. In the net rate that compounds. Expense ratios, advice charges and spreads all reduce terminal wealth.

Mental accounting sits in the behavior 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. What is mental accounting 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.

Keep the name, the year, and 1. “Prefer net rates” is why those three stay.1

Figures to keep

Year of the rule: 1
Figure in the sum: 1
Item: Mental accounting
Reason kept: Prefer net rates

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