Rule of 115 as of · 152
Before the leaflet goes back in the folder, reduce Rule of 115 to one line: , “Future value (lump sum),” 1. Do not copy the button text as the reason you signed. What changed in the last century is access — index funds, payroll deduction and phone apps put long clocks in ordinary hands.
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.
Keep the name, the year, and 1. “Future value (lump sum)” is why those three stay.1
Figures to keep
- Year of the rule
- 1
- Figure in the sum
- 1
- Item
- Rule of 115
- Reason kept
- Future value (lump sum)