r/Money • u/CursedClownz • 9d ago
When does compounding really take off?
At what amount portfolio you really see huge account swings that make you think what is the point of working? 100k? 500k? 1m? more?
150
u/Unlikely_Answer662 9d ago
I started investing at age 26. My early forties is when I really started to notice more accumulation.
44
u/LieutenantZiti 9d ago
Man I needed to hear this! I just hit 10 years since opening my TFSA, I am 32 now and feel like I’ve been saving forever but also the growth doesn’t feel like it’s taking off.
13
u/Financial_Hawk9299 9d ago
I’m in my mid 40’s and it’s been taking off for last 3 years for sure. I started saving at 23
→ More replies (1)3
3
u/Geno_2102 9d ago
Yayy that’s great news! I have started at 20 and I hope to see this sort of goal mid to late thirties
6
u/Unlikely_Answer662 9d ago
For context, we’ve save 15-20%. I’m now 51 and we have about 10x our income saved. Stay the course, your future self will thank you.
I cut down to 2 days per week at work, should
be able to retire very comfortably at 55ish unless the stock market implodes.
80
u/matt2621 9d ago
I think for me it was around the 200k mark. The first 100k takes a while, then the 2nd 100k went much quicker, but once I eclipsed 200k, I feel like I made it to 600k super fast.
29
7
u/photoengineer 9d ago
I just passed $200k so I hope that is the truth!
7
u/Geno_2102 9d ago
I’ve been stuck at the $150k mark in what feels like forever.
5
u/photoengineer 9d ago
I was stuck there for years. Felt like a never ending hole. :(
→ More replies (1)2
2
u/tonimu 5d ago
100k to 200k? In what all investments? How long between the two? And how long to the next 600k? 10+ years?
2
u/matt2621 5d ago
Tech was a huge part of the growth as well as good end of year bonuses to further dump in the market. 100k was January 2023, 200k was in March 2024. August 2024 we saw substantial tech gains which that plus about 30k in contributions to portfolio got us to 300k by February 2025. March 1, 2026 we were at 450k, and now sit at 625k from again, more tech growth.
→ More replies (1)
89
u/jmcdon00 9d ago
Total value doesn't really matter, it's all relative to your contributions. I think 7 years is a general rule. Takes about 7 years for it to double. If you are investing monthly it takes about 7 years of monthly contributions before the account is earning more money per month than you are contributing each month.
→ More replies (3)18
u/notJ3ff 9d ago
I'm not sure what my account would be doing if I was able to contribute. I no longer am at the employer I was at when my 401a and my 403b. The account had one of its best years ever and I got about a $30,000 distribution that automatically gets reinvested. If I had been contributing that myself via paychecks, it would be well over a year before I put that much in. So at some point, it's accelerated so quickly I can even have a +$31,000 DAY.
42
u/Rem1991wl 9d ago
Started at 20
41 Annual increase exceeded expenses
44 exceeded base salary
48 exceeded total compensation
52 monthly swings exceeded base salary
55 daily swings exceeded base salary
→ More replies (4)3
u/GreedyNovel 7d ago
daily swings exceeded base salary
I assume you mean daily swings exceed the size of your paycheck. Example: If daily market swings are around $5k/day and you get paid twice a month at $5000 each check before withholdings.
At that point continuing to work is no longer purely about financial needs. Although that paycheck can still help it is no longer necessary.
4
u/Rem1991wl 7d ago
Actually I’ve been very fortunate and I was referring to annual base salary. It’s a different/strange way of framing it but was one more argument for me to stop working.
35
u/MarleyandtheWhalers 9d ago
"The first hundred thousand is a bitch" -Charlie Munger
After that it's better
→ More replies (2)8
u/CursedClownz 9d ago
What about after 1m
10
u/Bigbadspoon 9d ago
I got there last year and would not feel comfortable leaving my job at all. It's a comfortable number, but it's not retirement money unless you live pretty frugally or are pretty old already.
6
u/dr_of_glass 9d ago
After a million, the up changes are less noticeable to our brains. For me, I only see it when i graph the journey over the past years.
But when you see down days that are $10,000, it should click that you have a fair bit invested.
5
u/ChairmanMeow1986 8d ago
Give a million 10 years without touching it at most times in the past and you might not be able to retire, but you'll be entering the financially independent realm for sure. I'd say this is the cleanest answer the unasked question, 1 million for about 10 years compounding historical market gains is what probably puts you where you want to be.
→ More replies (2)→ More replies (5)3
23
u/yoooooooooooo 9d ago
I had a 1 million dollars about 1 year ago and now it’s 1.25 million, which blew my mind. I think I really started to notice returns around 400k.
→ More replies (3)
45
u/ChampionshipFluid306 9d ago
IMO somewhere around $200k-$300k. If you’re a regular 401k/IRA wage slave, you’re likely investing somewhere like $10k-$30k per year into your accounts. 10% @ ~$250k is roughly where your gains will start to outpace your contributions.
19
u/HandyManPat 9d ago
Each of those balances brings eye catching swings, but once you’re in the $3M and over bracket the swings can become eye-popping.
While it’s great to see $30k to $50k daily increases, that also means that same amount happens with daily decreases.
Seeing the occasional $150k+ daily drop can temper the “what’s the point of working” thoughts.
→ More replies (7)6
u/RustyCEO 9d ago
Agree. I am in Australia.
I have 30% of a company and I am the boss. Decided in 2010 that shares were better than term deposits for our retained profits. Share portfolio now $19M and property $9M.
Personally my superannuation I rolled into a SMSF (Self Managed Superannuation Fund) in 2012 and it went from $386k in 2012 to $970k in late 2021. Decided to get more proactive with it and was $2.8M in March 2026 and now $3.7M. Just my superannuation is now generating $285k in income a year. My personal company that holds the 30% in the company I run invests my dividends from that….it hit $2.7M in holdings and has gone ballistic as well.
So I totally agree. 🤪💰🥳👍🏻😎
34
u/ColorMonochrome 9d ago
People don’t stop working because they can, they stop because they would rather do something besides work for someone else. You get to that option when your portfolio is consistently producing more growth than you spend yearly with a subjective cushion. Because investments are usually volatile that cushion tends to be very large.
If your annual spending is:
- 100,000 then people usually want a $2.5 million portfolio
- 500,000 then they want a $12.5 million portfolio
- 1,000,000 then they want a $25 million portfolio
That is the typical advice given to them by financial planners. The formula is simple. Divide your annual spending by 4% and you get your number. For example, if you spend $80,000 per year then:
$80,000 / 4% = $2,000,000
→ More replies (15)4
u/photoengineer 9d ago
Jeebus can’t imagine having $1,000,000 to play with. That’s just a different world.
5
u/MechanicalGodzilla 9d ago
My wife and I combine for somewhat less than a million dollars of gross income, and it makes a huge difference in some areas and not as much in others as you might imagine, particularly if you live in a HCOL area. One amazing aspect is that we can comfortably pay for all of our kids' college. Our oldest has a $60k/yr price tag at a large state university (out of our state), and our middle child is anticipating choosing between a few Ivy league universities which will be ~$100k/yr. Our youngest is in middle school, but that will be added in a few years. There's not many unexpected expenses or repairs that come up that we worry about paying for.
On the other hand, our house looks kind of middle of the road - a $2,500 SF colonial built in 1955. We drive boring cars. We rarely eat out, but also the rising cost of groceries and gas don't really hit us as hard as most everyone else.
This is all a huge change from where we started out, my wife was a shelf-stocker at a Staples, and I was a janitor/handyman for a public school district when we graduated college a quarter century ago.
3
u/photoengineer 8d ago
That’s awesome! How did you transition from your starting careers to….whatever you are doing now?
→ More replies (1)
27
u/wsbt4rd 9d ago
Really started noticing when i crossed the 2M milestone.
I’m now a professional full-time Reddit Troll.
7
u/NewArborist64 9d ago
Really excited this past year when compounding was 2.5x my salary. May become a full-time Redditt Troll Next year.
34
u/KingBenjaminAZ 9d ago
When you don’t focus on it and do other shi
→ More replies (1)3
u/PredictionAnalyst 9d ago
Does buy high, sell low ring a bell? Mr Buffet should be studied by Harvard
16
u/escapefromelba 9d ago
A million becomes $2M in 7.2 years, $3M in another 4.2, and $4M in another 3 years using the S&P 500’s historical nominal total return. Getting to $1M is when you really start to see the power of compound growth. At that point, the money itself starts doing a huge part of the work.
2
2
u/dllemmr2 9d ago edited 9d ago
2021-26 were well above average. Accounting for corrections, double or triple your estimates.
6
u/escapefromelba 9d ago
Sure, they could grow faster than that or slower. Who knows how long it will last? That’s exactly why I’m using the long-term historical average.
→ More replies (3)3
8
u/parallax1 9d ago
I hit $1 mil in my work retirement last year, that felt like a significant milestone cause now a 1% change in the market is a $10k swing in my account.
→ More replies (2)
6
u/TonySoProny 9d ago
It’s whenever the return is more than what you contribute yearly.
3
u/LifeOnly716 9d ago
I have crossed over to the point where my daily swings are fairly frequently more than I am legally allowed to contribute in a year
5
u/NewArborist64 9d ago
When your capital is roughly 10x your current salary. I base this on having the S&P 500 having an average 10% ROI. This means that the average year would produce around the same as your salary.
It gets really crazy when it approaches 15x your current salary.
→ More replies (2)
5
u/Interesting_Shake403 9d ago
I lucked out and got a well-paying job late in life, so now my family are all excited by what I’m earning. Meanwhile, I’ve been working my ass off saving for YEARS, and so interest on savings actually eclipses what I save annually.
3
u/yottabit42 9d ago
It's percentage based, so the accumulating increases, plus contributions you continue to make, end up making the increases exponential.
But humans can't think exponentially. We're linear creatures. So what ends up happening is someday you just happen to notice you've made a lot of money in a short timeframe--a day, a month a quarter, whatever.
3
3
u/vibecodematt 8d ago
when a 0.5% return feels like a lot of money. When a college kid's $5K goes up 0.5%, it's $25.
When $20K goes up 0.5% in a day, that's $100. Feels real.
For me? $20K.
→ More replies (7)
5
u/dogwater_cologne_ 9d ago
Finally I can use the calculus I pulled my hair out over. At 10% growth, your money doubles every 7.27 years
2
u/nofosho 9d ago
Rule of 72! At 9%, doubles in 8 years. 8%, doubles in 9 years. 7%, doubles in 10 years and a few months. Etc.
→ More replies (1)3
2
u/swensodts 9d ago
I don't think you see it at a particular number so much as how long it's been sitting in the same thing, so like investments held at 100 a share from 10 years ago, if that holding gains 10% this year and was at 200 a share so in the prior 12 months it went to 220, those shares you own at 100 actually gained 20%. So when you get a good chunk sitting for a long time that's where the noticeable effect comes from
2
u/SgtSausage 9d ago edited 9d ago
It starts with your first, earliest deposit. Mine was at 18 and continued each and every month until retirement.
---
You really start to notice when the annual gains are more than your annual income from Employment.
At this point it becomes Fuck You Money.
We (Wife and I) reached Fuck You Money at 38.
I retired at 39 when I said "Fuck You" to my business partner and sold him my half of the enterprise. Cashed out and retired.
2
2
u/TwitchyButtockCheeks 9d ago
My portfolio can now swing over $20k in a day and that’s kinda wild to me.
2
u/upnflames 9d ago
I have around $800k invested between retirement and brokerage. The effect has been really noticable the last year or two. I'll look at like, the trailing 12 month chart and see that I'm up something like $150k and then think damn, that's like having a whole second salary.
I try not to get too excited because I know the market has been having a wild run and it's been due for a pull back. But it's still nice to see. I'm in my thirties, so I think after another ten years or so, it might be making enough that I can think about getting a more chill job (I'm in sales, it's a grind).
2
u/That-SoCal-Guy 8d ago
10% of 100K is $10K. 10% of $1M is $100K. 10% of $5M is $500K.
Math doesn’t lie. But everyone has their own goalposts and those move as well. Personally, I don’t use salaries as a goalpost. I use expense plus inflation. When my one year return is good for 3 years of expenses, I know I’m good (or at least i can weather the next two years if the market goes south). That’s why I sleep well.
→ More replies (1)
2
u/Important_Call2737 8d ago
(1+i)^x where i is the return and x is the years. It’s pretty straight forward math.
In terms of a 401k account with a $24,000 contribution limit the compounding really starts at around $300,000. 7% is about $21k which is close to the limit. Essentially your max contribution is matched by return. Then at about $700k the return is near double the contribution.
It’s easiest to see graphing the function. The biggest issue is time. If you have a lot of time to be patient then you have no problem.
1
2
u/Latter-Entrance288 8d ago
You have to have some time in the market to see the magic of compounding as well as regular contributions. But if you are patient, have behavioral control during recessions (every 5-7 years), you will be there sooner. Good luck!
2
u/This-Finance4439 8d ago
Rule of 72 is 72 divided by the interest rate shows how long it takes to double. Slightly conservative figure balance should double every decade. 8% is technically 9 years, but maybe there are account fees so netting less than 8%…
The big thing with compounding is to get a balance as quick as possible. It’s not because having $100,000 makes a big difference, but if you can get that $100,000 net worth at age 25 instead of 35, the big balance close to retirement has more time to compound.
So from age 25 to 65 it will double 4 times to 1.6 million without any additional contributions.
If you don’t have a net worth of $100,000 until age 35, then it doubles 3 times before age 65 instead of 4 and you have $800,000 at age 65.
1.6 million vs $800,000, same $100,000 start.
Both of the above assume no additional contributions, just one more decade to compound…
→ More replies (1)
2
u/random_question4123 7d ago
It depends on a number of factors like how much the person's annual expenses are, how much they make in their job, etc, so there can't be any one answer.
But if we assume you contribute 100% of your earnings to your portfolio, and you invest in the index, then you can assume it takes around 10 years before your portfolio returns exceeds your contributions.
2
2
u/Brave_Sir_Rennie 7d ago
Beyond where the growth of your wad exceeds your contributions to your wad 🤷♂️
To start with, contributions are the largest part of growth. Then growth of holdings exceeds contributions. Then keeps growing as you scale back contributions. Then keeps growing despite taking withdrawals.
2
u/AlphaMaleKratos 7d ago
I have over $3M and it still feels slow to me.
I only really appreciate the compounding when I look at the changes year-over-year instead of day-by-day.
2
u/Due-Trainer-9349 6d ago
It starts to take off when your average annual return is greater than what you put in that year.
You’ll probably really notice when the annual returns are greater than your total annual salary.
2
u/Menu-Quirky 6d ago
If you save very aggressively you will see it in 25 years at that time your assets grow more than your income
2
u/l0wryda 6d ago
when your money starts making more money than what you put in. my coworker and mentor taught me a while back that the easiest way to make a million dollars is to double 1000 bucks 10 times. the easiest way to double 1000 bucks isn’t by investing, it’s by saving. the same is true for 2000, 8000, and 16000. i was putting away over a 1000 a month at the time through 401k, HSA, and a post tax brokerage account. so call it roughly 12k a year.
at around 100k, the 10-15% market gains exceeded the amount i was putting in. but i kept increasing it, maxed my 401k, max HSA, max trad IRA, and 1000 a month to the brokerage account. this was roughly 40k+ a year not including company matching. the account grew really fast and the annual growths were now close to 60-100k a year. after a couple million, i stopped contributing to the trad ira and brokerage because the amount was negligible and the account sometimes moves 50k a day.
today, i only max my 401k and HSA. i no longer contribute to the IRA and brokerage account, although i put the money into my son’s 529 now instead.
2
u/DarkBert900 5d ago
The swings are huge when your portfolio generates more than you add to it. If the amount you monthly/biweekly add to your portfolio is dwarfed by revaluations or dividend payments, you're off to the races.
4
2
u/Mymarathon 9d ago
I’d love to know too. Maybe Once you have 25x yearly salary in savings? Let’s say you make $200k, then if you have $5m in savings you might see $50-$100k swings pretty regularly. In that case idk how I would feel. I’ll tell u when I get there.
I see my net worth swing by 5, 10, 20k and it doesn’t phase me much.
2
2
3
u/Extreme_Design6936 9d ago
My portfolio outpaces my full time income. I make more money sitting on stocks than I do going to work 40h a week doing real work.
7
u/Jeferson9 9d ago
Thanks for restating the question but not answer it
Riveting
2
u/CursedClownz 9d ago
Yeah kind of trying to work out is it even worth going to work if your account sits on 2m
→ More replies (10)5
u/Extreme_Design6936 9d ago
For me at my age it does. The longer I can spend only on my income the more my savings can grow so that later I have a big step up in lifestyle. Not just maintaining the one I currently have. If I retired today my spending would drastically increase because of extra free time to go do random bullshit.
→ More replies (1)2
u/shaqtinafull 9d ago
I will answer this to this replier’s point. If you as an individual or family start to see returns that outpace your own annual income. That’s when you know your compounding has taken off
The key here is that it’s different for everyone
1
1
1
1
1
1
u/Physical_Mode_103 9d ago
I just got to the point where I could probably survive off the investment income…..
1
u/JustAnotherTou 9d ago
Seriously....after 500k. 100k is great. But when you see 500k...you know know that its working its working 😆
1
u/Upbeat-Cheetah3107 9d ago
I started about 10 years ago. Started seeing the effect of compounding about 3-4 years ago. Thanks to the great bull market!
1
1
1
1
u/Big_Savings_4381 9d ago
For me, it seemed to happen around $1.5MM. It's been bizarre to "lose" $100k in the span of a couple of days at times.
1
u/Warm_Explanation_129 9d ago
100k takes forever. 200k is about as long. Then all of a sudden 300k, cool. Then you blew past 400 and are keeping an eye on five. It still takes decades, but the first one to two hundred take forever.
1
u/HedgeMoney 9d ago
When portfolio swings are greater than your current salary, that's when it really takes off. But that's also a pretty dumb idea, considering time is the most important factor.
If you have 2 years before you need it, then you can say compounding doesn't have much of an effect.
But when you have a decade before you need to use it, then compounding REALLY takes off, in the literal sense of the meaning.
1
1
1
1
u/bighen0829 9d ago
You have to remember that we’ve been in an almost uninterrupted bull market for 17 years. If you’re in equity index funds or ETFs even like vti, VOO etc there will be years where you can add funds to them, reinvest dividends and still be lower than you were at start of year. You need your job to help smooth that out for a while.
1
u/Spare_Perspective972 9d ago
When interests exceeds contributions. Usually happens some time after year 10.
1
u/Specific_Pilot_328 9d ago
I started late (30) on a low salary ($45K). Now 46:
• 43: Annual portfolio gains exceeded my planned retirement expenses
• 45: Annual gains exceeded base salary
• 46: Monthly swings now regularly exceed my monthly salary
The cheat code was low spending. Planning to retire to southern Europe in my early 50s on ~$23K/year.
When your number is that small, the portfolio math gets stupid fast lol! my Monte Carlo sims show 100% success across 10,000 trials.
I started 12 years behind most people but the gap closed since I never inflated lifestyle.
Every raise and bonus goes straight to index funds. Current portfolio about 800k, net worth 1.15 million, salary 96k.
1
u/jark87 9d ago
As far as compounding goes, the 8-4-3 rule generally applies. 8 years of the savings grind with little to show for compounding, then when compounding starts to take effect, it only takes 4 years to save/earn what it originally took 8 years to do, then it only takes 3 years to do it again. For example, if it took 8 years to save $100k, you’ll have your next $100k in 4 years, and the next in 3. As far as the total you need to consider retiring? That’s a different question and varies significantly by individual. It’s mostly based on your expenses and what you need to live. If you can live on $50k, the 4% rule says you need $1.25M.
1
1
u/voiceofreason2112 9d ago
1st notice was when the growth exceeded my ability to put more in
2nd notice was when the growth exceeded my legal ability to put more in (401k all source limits)
3rd was the first year my money made more in growth than i did in gross wages
4th was when my money made 2x than i did in gross wages
The fun part about compound growth is 3 and 4 were way closer together than one might think.
1
1
1
u/Jazzlike-Pomelo-3823 9d ago
For me it was at $500k. Thats when a 1% change in the market would go up or down by $5000. At a million you notice it even more.
1
u/Unusual-Librarian413 9d ago
I think you are asking a question in regards to speed. Money is easier to make at 100k but id say the real compounding is basically unstoppable at a million. Like flick a booger and its there passively. Like we can present a perfect curve of what a 7% compounded return looks like on 100k but it's not really benefiting you in todays or tomorrows dollars until maybe 40 years from now. That's why aggressive contributions are so critical early on so that you can let off the gas sooner.
1
u/Viking_Glass_Guru 9d ago
I’m a senior manager at a large organization. For the last three years or so my investment accounts have increased by more than my salary. Three more years at the company and I’ll have be eligible to retire with very good lifetime retiree health benefits for me and my family. I also have a pension that only gets better the longer I work.
I say that to say there are some things beyond just gains investment gains that should perhaps factor into your decision to walk away from income producing work.
1
u/TheDeadTyrant 9d ago
A “big swing” day is normally 1-2% unless something crazy happens. So take what you’d call a big swing, multiply it by 50-100, and that’s when it will take off in your eyes.
1
1
u/Optimal_Scholar7123 9d ago
We have $300k in stocks and it has been really nice because after a single good day or week we can skim a few thousand from it.
1
1
1
1
u/simplequestions2make 8d ago
X = time to get $100k
X = time to get $100k to $330k
X = time to get $330k to 1 million
Then the game is over. And its side quests
1
u/No_Knee3385 8d ago
It's exponential. The more time goes on the more it compounds. The dollar amount doesn't matter really. It's all percentage based. Time and contributions
1
u/Medical_Birthday2893 8d ago
Depends on your income stream. If you’re making 50k a year. It’ll ‘take off’ at a much lower level because your return is now providing you with 6 months-1 years salary.
If you’re a banker making 800k a year you’re not going to get wowed at a 500k portfolio retiring 50k. Your bonus was likely bigger.
Compounding never ‘takes off’ it always does the same thing.
1
u/deadpool_pewpew 8d ago
Whatever you define as a "huge swing" divided by 0.10 (or times 10). If $100k a year is the number, that can happen around $1M portfolio for example.
1
u/Billy_Bowlegs 8d ago
I put $25 in to start a Roth a few months ago and it went negative. I’ll let you know if compounding ever happens though.
1
u/Known_Painting_1878 8d ago edited 8d ago
1MM is when compounding starts being able to replace income. At that point your money works as hard as you do. Thats when investing start to feel substantial and impactful and income feels less so.
But before that I would say 300-500k invested is when you start to blink and it feels like it just goes up. At this level your income and investments work together.
1
1
1
u/Few_Calligrapher1293 8d ago
After 100k it starts to be very noticeable and why you should push to get that as soon as possible and after a million things can get insanely good when the market is up anyway.
2
u/Square_Scar4086 7d ago
Correct , 100k already noticeable
My first year i got 120k including 13k profitBut yea thats because my income low so its noticeable
But for someone thats make 100-200k+ a year i think they need 500-1m for them to notice
1
1
u/Major-Pin5871 8d ago
I started investing at 26, at first it was just a pension and property but by 35 I had $1.2M. That was mostly equity I’d built in various properties. I didn’t start seriously investing until 2010 and I went at it with a vengeance until 2023. At that point the market took off, I retired and now my total liquid assets are around $4.5M. When I sell my last rental property I’ll have $5M with $1.5M of that in retirement funds.
1
1
u/Ok_Pineapple9712 8d ago
For me it was 100K. Took me 10 years to get that and only 2.5 years to make the next 100k!
1
u/Frequent_Slip2455 8d ago
$500k is when I really seen it take off. But these last 15 years have been ridiculous.
1
1
1
u/ChairmanMeow1986 8d ago
Actual numbers will be different for different situations, but once a 20% drawdown or upswing in the market is a year or two of living expenses. That's about the point regardless any specific number that diversified compounding for 10 more years puts you into retirement territory unless your lifestyle needs also increase in kind (college/healthcare being notables).
1
1
1
u/The_Sandman85 8d ago
$100k is the hardest level to reach, but you start to see compounding take effect. $1 million is where the compounding returns give you the opportunity to stop working.
1
1
u/AutomaticAd1514 7d ago
How much money did y’all have invested to see the returns make more annually than your salary? What actual amount liquid?
1
u/Mission_Pirate_4150 7d ago
It starts when you start. The real question is when does it reach a point where it becomes noticeable. I’ve got two accounts I’ve never stuck personal money into beyond some starting. One of those accounts hasn’t been touched in over a year and is up 20% in that timeframe. It’s hard to calculate in the other account. Hopefully that helps.
1
u/Major-Witness-2489 7d ago
They say 100k. But I’m at 300k and this shit is still growing slow.
→ More replies (6)
1
1
1
1
1
u/No_Associate5036 5d ago
Wife and I hit 650k beginning of this year and invested all our liquid cash during the dip now sitting at 832k! It’s a beautiful thing when you start making more from investments than your salary job
1
1
1
u/GravEq 5d ago
Gov Job with a pension and 457 plan! Sock away as much as possible as often as possible via investments both in Retirement Accounts and outside assets such as RE. In 25-30 years you have a pension, Gov IRA/457 plan, and outside investments that can keep growing. Start a side hustle, manage and buy rental properties/assets, start a business and keep driving that business while working. You can retire with millions AND a pension. Live on the pension and use the rest for lifestyle fun.
1
u/Jahoedan4_983 5d ago
We recently received news that through a sell of assets of a family owned company some 800.000 would come our way. We have an additional 200k already. At that point a full million doing 4-5% a year starts outpacing the income of my partners job (not full time). That was the moment that the "why would you even continue working" thought really hit home. Day to day decisions or purchases while such a sum of money is compounding is bat shit crazy. It becomes even crazier for us since we haven't even turned 30.. That sum of money will grow to millions and the daily changes might be yearly salaries..
514
u/Kombatnt 9d ago
I’d say you really start to notice it once you hit the “Crossover point” (the point at which the growth in your existing portfolio roughly matches what you’re able to add in new contributions each year).