Capital Allocation · Resources
Learning Center
Learn the ideas behind the numbers
Short guides to the ideas the calculators are built on, written for people starting out, with every source shown and nothing oversold. Each one ends at a calculator where you can try the math on your own figures.
The library
18guides
Reading timeabout 48 min
Topics9
Last reviewedAug 2026
Every guide names its sources. Figures come from fixed historical windows rather than live feeds, so they do not go stale between visits. Educational only.
Getting StartedWhat is capital allocation?Capital allocation is the question underneath every other money decision.3 min readInvesting BasicsWhy most individual stocks lose to Treasury billsMost individual US stocks have failed to beat a Treasury bill over their whole listed lives.3 min readInvesting BasicsWhat twenty years of scorecards say about beating the marketS&P has scored active funds against their own benchmarks since 2002.3 min readFinancial AssumptionsThe gap between what funds earn and what investors earnA fund reports one return.3 min readInvesting BasicsHow compound growth worksEveryone is told compounding is powerful.4 min readInvesting BasicsHow contribution rate changes long-term outcomesReturns get all the attention and you cannot control them.2 min readFIRE PlanningHow to estimate your FIRE numberYour FIRE number is annual spending divided by a withdrawal rate.2 min readFIRE PlanningWhat is a safe withdrawal rate?The 4 percent rule is one study from 1994, and the number it produced was a worst case rather than an average.Morningstar 2026: 3.9%6 min read · updated Aug 2026Portfolio AllocationPortfolio allocation basicsWhich funds you own matters less than how much sits in stocks versus bonds.4 min readPortfolio AllocationHow to think about asset allocation driftDrift is the distance between the mix you picked and the mix you hold today.2 min readBudgeting and Cash FlowHow to calculate savings rateSavings rate is what you keep divided by what you earn.2 min readBudgeting and Cash FlowHow emergency funds are calculatedThe usual advice is three to six months, and the usual mistake is measuring it against income.2 min readDebt PayoffDebt avalanche vs debt snowballAvalanche saves interest.2 min readDividendsHow dividend income projections workDividend income is yield multiplied by value.2 min readFinancial AssumptionsWhy projections are assumptions, not guaranteesA projection is an if statement wearing a dollar sign.2 min readFinancial AssumptionsHow inflation changes long-term planningInflation runs the same compounding arithmetic as your portfolio, pointed the other way.2 min readReports and ScenariosHow to compare financial scenariosTwo plans that differ in four ways tell you nothing.2 min readReports and ScenariosHow to read a financial planning reportThe headline balance is the least informative number in any plan.2 min read