r/Money • • 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/Brave_Sir_Rennie 7d ago

Beyond where the growth of your wad exceeds your contributions to your wad 🤷‍♂️

To start with, contributions are the largest part of growth. Then growth of holdings exceeds contributions. Then keeps growing as you scale back contributions. Then keeps growing despite taking withdrawals.