Rule of 72 as of · 156
Before the leaflet goes back in the folder, reduce Rule of 72 to one line: , “Behaviour is a rate,” 72. Do not copy the button text as the reason you signed. It still requires capital at risk or a contractual rate — and costs still compound against you.
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. Money without a date is storytelling. Compounding and discounting both need a clock.
Keep the name, the year, and 72. “Behaviour is a rate” 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
- Behaviour is a rate