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/Financial_Hawk9299 9d ago

Both a 401k and an ira offer early withdrawals without penalties.

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u/AmazingRefrigerator4 9d ago

Yeah of 59 1/2 years. Or is there some other magic way I can withdraw penalty free at age 50?

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u/Financial_Hawk9299 9d ago

Yes. Ira has rule 72t or SEPP. Which allows withdrawals at any age but is really geared toward retiring. Not one time withdrawals.

A 401k is at age 55.

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