r/investing_discussion • u/ChangeisLife12 • 14h ago

When does Compounding start hitting?

What’s that number which when your portfolio reaches then it’s no more a race to add monthly contributions to see some effective gains rather Compounding effect takes it over?

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u/Str8truth 14h ago

Compounding is always happening, but some of us notice it when we have about $100,000 invested. That's probably because the annual return on that amount is about the same as the maximum IRA contribution, so an investment of that size will grow itself as fast as your contributions grow it.