numberrule

Every formula, written out

Investing & retirement

Regular investing, fund charges, employer matches and what it takes to stop working.

Everything here rests on two numbers you supply and nobody can promise: the return and the time. Time is the one that does the work. A pound invested for thirty years has to grow at a modest rate to become several; a pound invested for five has to grow at an implausible one.

The number people underrate is the annual charge. A fee taken from the balance is not a deduction, it is a permanent reduction in the growth rate, so its cost compounds exactly the way the growth does. A difference of one per cent a year takes a tenth or more of the final pot over a working life, which is why the fund charge calculators here exist at all.

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