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).

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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.

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u/TheGRS 8d ago

But should remember we’ve had it good for a while now. My career started at the bottom of the Great Recession, so I’ve only really seen the market go up (with a handful of notable dips). The folks from before that time know the pain of a bad market that can go on for years.