Compound growth means returns can earn additional returns in later periods.

Early in a projection, contributions often dominate. Later, accumulated returns can become a larger share of growth.

A higher assumed return rate increases the projection, but it also increases the risk of overconfidence if treated as guaranteed.

Starting earlier gives each contribution more time to compound, which can be more powerful than increasing contributions later.

A future dollar amount is not the same as today's purchasing power.

Use inflation-adjusted value when comparing long-term scenarios, especially retirement or education planning.