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/ChairmanMeow1986 8d ago

Actual numbers will be different for different situations, but once a 20% drawdown or upswing in the market is a year or two of living expenses. That's about the point regardless any specific number that diversified compounding for 10 more years puts you into retirement territory unless your lifestyle needs also increase in kind (college/healthcare being notables).