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Research and sources

The research behind the strategies

Every card below summarises one published source that we read ourselves. We give the source's own date, say what it found in our words, explain how it applies to a MoneyFrame simulator, and list what it does not tell you. We show when we last read the page. We do not add a source we have not read, and we do not invent figures or citations.

How to read the labels

  • Established principle. How the maths works. It holds whatever the market does.
  • Product or rule, as published. What a regulator or an official guide says a product or rule is. It can change, so check the current terms.
  • Historical research finding. What happened in past data, for a stated set of assumptions. It describes the past and does not forecast.
  • Stated policy goal. What an institution says it is aiming for. A goal is not a prediction.

Your own assumptions in a simulator, such as a growth rate, are a separate thing again. They are choices you make, and the results are projections, not facts.

Established principle

Established principle

What is compound interest?

U.S. Securities and Exchange Commission (Investor.gov) · The page shows no date

What it says. Compound interest is interest earned on interest. The page's example: $100 at 5% a year becomes $105 after one year and $110.25 after two, because the second year also earns interest on the first year's $5. With nothing added, it passes $162 after 10 years and reaches almost $340 after 25.

How it applies here. The mechanism behind every balance on the saving, lump-sum and builder pages. MoneyFrame compounds monthly for savings and yearly for ladders, so its figures differ slightly from this yearly example.

What it does not tell you.
  • A teaching example with a fixed rate and no withdrawals
  • Real rates change and are not guaranteed
  • The page shows no publication date

Read the source · MoneyFrame last read this page on October 13, 2026

Established principle

The Rule of 72

U.S. Securities and Exchange Commission (Investor.gov) · The page shows no date

What it says. Dividing 72 by an expected yearly rate gives the approximate number of years for money to double. The page's example: at 9%, about 8 years.

How it applies here. A quick check on any growth figure. Compare the doubling time it gives with what a simulator shows for a lump sum.

What it does not tell you.
  • It is an approximation, not an exact calculation
  • It assumes the rate stays the same the whole time
  • It says nothing about regular deposits, fees or tax

Read the source · MoneyFrame last read this page on October 13, 2026

Product or rule, as published

Product or rule, as published

Understanding deposit insurance

Federal Deposit Insurance Corporation (FDIC) · Last updated April 1, 2024

What it says. Deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category, with deposits in the same category at the same bank added together. Covered: checking, savings and money market accounts and certificates of deposit. Not covered: stocks, bonds, mutual funds, annuities, U.S. Treasury securities and crypto assets, even when sold through an insured bank.

How it applies here. Bank deposit products such as a recurring deposit or a deposit ladder. Where a ladder puts more than the limit into one ownership category at one bank, the amount over it is not covered by this insurance.

What it does not tell you.
  • Applies to insured banks; credit unions are insured separately
  • Limits and categories can change, so check the FDIC's own tools for a specific account
  • Says nothing about the interest rate a product pays

Read the source · MoneyFrame last read this page on October 13, 2026

Product or rule, as published

What is a certificate of deposit (CD)?

Consumer Financial Protection Bureau · Last reviewed August 28, 2026

What it says. A CD is a type of savings account offered by banks and credit unions. Withdrawing money early means paying a penalty fee to the bank. Bank CDs are insured up to $250,000 by the FDIC and credit union CDs up to $250,000 by the NCUA.

How it applies here. Each rung of a deposit ladder behaves like a CD: a fixed term, with a cost for leaving early. The ladder simulator assumes you do not withdraw early.

What it does not tell you.
  • Penalty size and rate are set by each bank, so read the account terms
  • The page does not discuss ladders or callable CDs
  • MoneyFrame's ladder uses one rate for every rung; real rungs usually pay different rates

Read the source · MoneyFrame last read this page on October 13, 2026

Product or rule, as published

Certificates of deposit: tips for investors

U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy · Last modified December 3, 2008

Older source. Products and rules may have changed since this page was written, so check current terms.

What it says. Some CDs are callable: only the issuing bank, never the investor, can end them early. If you hold a long-term CD and rates rise, you stay locked in at the lower rate. Redeeming a CD before maturity may carry an early-withdrawal penalty or cost part of the interest earned.

How it applies here. The two risks a deposit ladder is meant to soften: being stuck at a low rate for a long term, and needing money before a deposit matures. The ladder simulator uses one fixed rate, so it does not show either risk.

What it does not tell you.
  • An older page (last modified in 2008), so products and rules may have changed
  • Written for consumers choosing individual CDs, not a study of ladders
  • Does not say how much a ladder reduces either risk

Read the source · MoneyFrame last read this page on October 13, 2026

Product or rule, as published

Credit card statement: payoff time and the 36-month payment

Consumer Financial Protection Bureau · Last reviewed January 22, 2024

What it says. Card statements must show how long it would take to clear the balance on minimum payments, and the monthly amount that would clear it in 36 months. You do not have to pay more than the minimum, but the more you pay each month, the less interest you pay over time. The figures are based on the current balance and ignore any future purchases.

How it applies here. The extra-payments page works from the same idea: a fixed payment, interest on the falling balance, and how an extra amount changes time and interest. Compare its result with the figures on your own statement.

What it does not tell you.
  • Your own statement, with your actual rate and balance, is the authority for your card
  • Assumes no new purchases
  • Does not compare paying extra with saving or investing instead

Read the source · MoneyFrame last read this page on October 13, 2026

Historical research finding

Historical research finding

Cost averaging: Invest now or temporarily hold your cash?

Vanguard research (Megan Finlay and Josef Zorn) · Published February 2023

Older source. Products and rules may have changed since this page was written, so check current terms.

What it says. Using historical and simulated market data, investing a lump sum at once did better than spreading it over time about two-thirds of the time. The authors link this to U.S. stocks outperforming cash 76% of the time over 1976 to 2022 (bonds, 68%), so cash waiting to be invested has an opportunity cost. They note spreading can still suit people with a strong aversion to losses, who might otherwise leave the money in cash.

How it applies here. The 'cost of waiting' on the lump-sum page. That page uses one steady rate, which favours investing sooner whenever the rate is above zero; this study shows the same tendency in real history, and also that it is not a certainty.

What it does not tell you.
  • The headline comparison is a one-year result for a 100% equity portfolio, a three-month plan of three equal monthly parts, and no interest on the money still waiting
  • Past results do not predict future ones, and the paper is a tendency, not a rule
  • Published by an investment manager, so read it as one well-documented view
  • Says nothing about which choice suits a given person's risk tolerance

Read the source · MoneyFrame last read this page on October 13, 2026

Stated policy goal

Stated policy goal

Why does the Federal Reserve aim for inflation of 2 percent?

Board of Governors of the Federal Reserve System · Last updated August 22, 2025

What it says. The Federal Open Market Committee judges that inflation of 2 percent over the longer run, measured by the yearly change in the personal consumption expenditures price index, best fits its mandate. It says steady, predictable inflation helps households and businesses plan saving, borrowing and investing.

How it applies here. Why a balance's buying power is worth thinking about. A goal of about 2% a year means prices are expected to keep rising, so the same amount of money buys less later. MoneyFrame's step-up saving and rising-withdrawal options are a way to reflect it.

What it does not tell you.
  • A target, not a forecast: actual inflation can be above or below it
  • Describes the central bank's goal, not what any price you face will do
  • The conclusion about buying power is MoneyFrame's own reading, not a statement on the page

Read the source · MoneyFrame last read this page on October 13, 2026

Put it to use

Each strategy page shows the cards that apply to it, next to a simulator you can run with your own numbers.

Browse the strategy library →

This is education, not personal investment advice. Sources are summarised for context and do not endorse MoneyFrame.

All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.