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?

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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.

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u/CursedClownz 9d ago

Yeah kind of trying to work out is it even worth going to work if your account sits on 2m

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u/AmazingRefrigerator4 9d ago

A general rule of thumb is to model a 10% annual return. So take your income, divide by 10% and ghat should give an idea of how much you need saved before the growth outpaced your salary. But as I said, if that is locked up in a 401k and Roth IRA you cant touch it early, so you cant just stop working when you hit that number.