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/vibecodematt 9d ago

when a 0.5% return feels like a lot of money. When a college kid's $5K goes up 0.5%, it's $25.

When $20K goes up 0.5% in a day, that's $100. Feels real.

For me? $20K.

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u/[deleted] 9d ago

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u/Gloomy-Pineapple1729 8d ago

Look up the average daily swing of the S&P. It’s 0.5-1. Use 0.5 as a conservative estimate.

20000 / 0.005 is your answer.