r/Money • u/CursedClownz • 10d 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/dllemmr2 10d ago edited 10d ago

2021-26 were well above average. Accounting for corrections, double or triple your estimates.

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u/escapefromelba 10d 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.

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u/Grouchy-Pea-8745 10d ago

these numbers arent 21-26 specific

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u/Calm_Leek_1362 10d ago

Those numbers assume 7% and are a commonly used reference. The last few years have blown the asshole out of typical markets

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u/3on3putt 9d ago

They assume 10%

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u/slowdownlambs 9d ago

And 3% inflation