THE RESEARCH LAB
Compounding & cost lab.
Compare nominal and inflation-adjusted outcomes under your own assumptions. This is scenario arithmetic, not a forecast.
YOUR ASSUMPTIONS
The same assumptions. Different outcomes.
Hypothetical annual compounding · USD
Horizontal axis: years. Total nominal contributions: $220,000. The fee impact includes foregone growth; it is not just the sum of charges.
How the model works & annual values
Each year, the existing balance earns the assumed return, then the percentage fee is deducted. A fixed nominal contribution is added at year-end and begins earning the next year. Real value = ending balance ÷ (1 + inflation rate)years. Returns and inflation are constant in this illustration. Taxes, withdrawals, transaction costs, and changing market conditions are excluded. Inputs are scenarios, not expected returns.
| Year | Before fees | After fees | Today’s dollars |
|---|---|---|---|
| 0 | $100,000 | $100,000 | $100,000 |
| 1 | $112,000 | $110,940 | $108,234 |
| 2 | $124,720 | $122,420 | $116,522 |
| 3 | $138,203 | $134,468 | $124,867 |
| 4 | $152,495 | $147,111 | $133,275 |
| 5 | $167,645 | $160,378 | $141,751 |
| 6 | $183,704 | $174,301 | $150,299 |
| 7 | $200,726 | $188,911 | $158,924 |
| 8 | $218,770 | $204,243 | $167,632 |
| 9 | $237,896 | $220,333 | $176,427 |
| 10 | $258,170 | $237,217 | $185,314 |
| 11 | $279,660 | $254,936 | $194,298 |
| 12 | $302,439 | $273,530 | $203,385 |
| 13 | $326,586 | $293,042 | $212,579 |
| 14 | $352,181 | $313,518 | $221,886 |
| 15 | $379,312 | $335,006 | $231,310 |
| 16 | $408,070 | $357,556 | $240,858 |
| 17 | $438,555 | $381,219 | $250,535 |
| 18 | $470,868 | $406,051 | $260,346 |
| 19 | $505,120 | $432,110 | $270,297 |
| 20 | $541,427 | $459,456 | $280,393 |
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