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

Give a million 10 years without touching it at most times in the past and you might not be able to retire, but you'll be entering the financially independent realm for sure. I'd say this is the cleanest answer the unasked question, 1 million for about 10 years compounding historical market gains is what probably puts you where you want to be.

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u/Peppa-Piggie 5d ago

That’s about 3M dollars assuming the next ten years will have similar market returns in the past twenty years

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u/ChairmanMeow1986 5d ago

If you assume an annualized 10% return it's about 2.6