Setting up my backup rotation, dumb questions ahead.

I'm setting up my Hyper Backup task out to an external hard drive at the moment. Once I get things locked in I'll consider cloud-based solutions as well. (Though my most important data is already backup up from my computer itself via Backblaze already)

I understand the basics behind backup rotation (I've been using Time Machine on my Mac(s) since its inception) and I'm even making sense of the frankly bizarrely-worded backup rotation dialog window, but my concern is about retention of the oldest version.

I don't realistically need hourly backups--the data being backed up isn't accessed or even changed that often, so choosing Smart Recycle and moving on seems silly. Because of this I'm going all in on Customized retention.

https://preview.redd.it/net79tou2qnh1.png?width=700&format=png&auto=webp&s=5564174b2093801dfb09651d25e3d2f6c24bb4e6

I'm thinking a daily backup for a month, older than a month a weekly backup for up to six months, and then monthly backups past that should be more than efficient.

But my concern is what happens past that first year. There's no possible way it deletes the initial versions of files, right? If I have a file that's persistent for the entire backup period but we get to a year, it doesn't delete the initial version of that file, right?

I'd hate to check up on my backup a year from now and find that it's only populated with things modified newer than a year.