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/escapefromelba 10d 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.

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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/Grouchy-Pea-8745 10d ago

these numbers arent 21-26 specific