Rule of 115 as of
Before the leaflet goes back in the folder, reduce Rule of 115 to one line: , “Name the cash flows,” 115. Do not copy the button text as the reason you signed. The Rule of 115 estimates years to triple money at a constant compound rate — a mnemonic, not a substitute for net and real returns.
Use the calculator for scenarios, then return to the section pages when you want the vocabulary behind the curve. What is rule of 115 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. 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.
Keep the name, the year, and 115. “Name the cash flows” is why those three stay.115
Figures to keep
- Year of the rule
- 115
- Figure in the sum
- 115
- Item
- Rule of 115
- Reason kept
- Name the cash flows