I’m currently 29 and I have an aggressive goal to reach $1M invested by the time I’m 40. I currently have about 140K invested and this goal assumes I contribute $1,250 bi-weekly and an annual return of 9% (including the compounding from the regular contributions). I wanted to see what happens if I split the remainder of my journey to $1M invested in 2 (~426K each) to understand the time it takes for each. Turns out the first half will take about 7 years and the second half only about 4 years. Thats about 3 years less for the second half. This is the direct effect of compounding. As your portfolio gets bigger, the growth works more and more for you :) Of course, 9% is not guaranteed but this is what I have in my plan. For now, I’ll keep buying $XEQT (and some smaller ETFs) every paycheque and stay consistent. At what portfolio size do you think you’ll start noticing compounding?
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7 Comments
Ryan Broumand
@Rbroumand · 16d
$2,500 a month in contributions is amazing. That’s 30K per year
drethegrateful
@drethegrateful · 16d
Keep pushing 💯
Twenty-five And Invested
@25andinvested · 16d
Ate you planning on iping your savinggs rate. Some cool tools allow you to up scale your savings with inflation. That makes most hit the goal a little earlier then they think
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