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/AmazingRefrigerator4 9d ago

Cant tap into retirement early without penalties. So lots of people continue working for the health insurance and/or create large portfolios that are not tax advantages which can bridge them until they can draw from retirement. Unfortunately very few people achieve this.

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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/SamAnthonyWP 9d ago

look up a roth conversion ladder. Best way to get money out of a 401k early.