Reinvestment as of
In a household notebook, Reinvestment is judged from . The line is “Name the cash flows” and the figure in the sum is 1. A blinking gain on a screen is not the reason. Cash paid out only compounds if you put it back — dividends, coupons and the discipline of not spending yield.
Reinvestment is the operational half of compounding: distributions must buy more principal, or “yield” becomes lifestyle income instead of growth fuel. Reinvestment sits in the engines 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 reinvestment 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.
For Reinvestment in , the figure that stays is 1, named “Name the cash flows.” Sparkle is not a figure.1
Figures to keep
- Year of the rule
- 1
- Figure in the sum
- 1
- Item
- Reinvestment
- Reason kept
- Name the cash flows