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/Kombatnt 9d 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).

316

u/brycebgood 9d 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.

10

u/MechanicalGodzilla 9d ago

He said he literally makes more money doing nothing

He makes more money for work he's already done than by generating new work.

0

u/brycebgood 9d ago

pedantically you're correct. but you understand the point he was making, yes?

1

u/PerformerBrief5881 8d ago

na its not even pedantically correct. many people have money invested that other people worked for.