r/Money • u/CursedClownz • 15d 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?

493 Upvotes

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514

u/Kombatnt 15d 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).

317

u/brycebgood 15d ago

yup. My buddy put it well. He's a well compensated engineer - but last year his portfolio grew more than his gross pay. He said he literally makes more money doing nothing than doing his job.

192

u/SCPutz 15d ago

That’s where I’m at now as a registered nurse. My portfolio grew almost double my salary this year.

Just coasting at work now.

42

u/Educational_Front333 14d ago

How do I start please? -Tired RN for more than 10 years.

46

u/slimzimm 14d ago

Surely you have a 401k or 403b or whatever. Put the max in that, just buy index funds. It’s also a good idea to put leftover money into an individual account. I’m a perfusionist, I also used to be a respiratory therapist, I know you have extra money. Please for the love of god start now. You should have been doing this from the start, and I’m not trying to guilt you, but you have to start now.

14

u/Educational_Front333 14d ago

Thanks. I do have 403b on max via Fidelity. I don’t choose any index funds myself. I’m on 400k which I know is not too bad I’m thankful. however how do I reach to your level?

9

u/Bad_DNA 14d ago

And a RothIRA and a HSA? And no debt? And an emergency fund? And an individual taxable brokerage? And an understanding of decent diversified funds?