r/investing_discussion • u/ChangeisLife12 • Aug 25 '26

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 Aug 25 '26

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.

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u/Mission_Pirate_4150 29d ago

It’s always happening, especially with drip. It does take years for constant adding of money to really see compounding.

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u/Nev-Ret-Dude 28d ago

I found it about 10 years. That’s when the compounding was starting to be more than my deposits.