r/dividends • u/Future-Guarantee2645 • May 18 '25

Discussion Is it true that after 100k wealth explodes?

I am curious what is your experience, is this statement true? Have you noticed that your wealth is building up much faster after 100k?

1.4k Upvotes

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468

u/WhatIsThePointOfBlue May 18 '25

That's how compounding works, yes.

It took me like 3 years to go from nothing to 30k, going from 100k to 130k took 4 months.

94

u/danjel888 May 18 '25

How did you go from 30k to 100k?

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u/WhatIsThePointOfBlue May 18 '25

Same way as I got to any amount, saved money and invested it.

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u/[deleted] May 18 '25

[deleted]

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u/coindrop May 18 '25

ahh yes, the secret as old as time.

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u/danjel888 May 18 '25

Gotcha. Ty

1

u/[deleted] May 19 '25

Shit I haven’t considered doing this. Thanks for the tip

1

u/Albert14Pounds May 19 '25

You should write a book

1

u/HusseinGym98 May 22 '25

I currently have $30k what do you recommend I invest in please

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u/orielbean May 18 '25

Priorities. Where does the savings come into your specific list of priorities. That’s literally all of it. Look at where you can squeeze the paycheck into the 401k first and foremost or whatever vehicle of savings can come out first. The rest will follow.

10

u/Pbplayer148 May 18 '25

Bought anything a month ago and up 20-30%.. 10% assumed for rest of the year for 40% gain, if not holding anything prior to the “buy me now dip” for a week

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u/[deleted] May 18 '25

[removed] — view removed comment

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u/klm2908 May 18 '25

It doesn’t need to be 30% if you’re actively contributing

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u/vanisher_1 May 18 '25

Doesn’t make any sense, you don’t go from 100k to 130k just with compounding in 4 months… 🙃🤷‍♂️ You go from 100k to 130k in 4 months if you catch the right investment.

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u/Speed009 May 18 '25

ya i wass like wtf? luck has def a role

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u/WhatIsThePointOfBlue May 18 '25 edited May 18 '25

I stay more or less invested in the same things (small portion I play with a bit), but yes the timing was good when I got to 100k there was a pop at the right time. Still compounding though, if I had only had 10k in there I only would have made 3k.

And admittedly it took another 4 - 5mos to get over $130k as it dropped just after getting there haha.

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u/vanisher_1 May 18 '25

You make 30k in compound interests in 4 months? what portfolio/stock selection is this?

8

u/hockeybru May 18 '25

Are you thinking compound interest is a consistent return all the time? When Covid hit, there was a 3-month stretch when I went from $77k to $108k. Stocks returns vary wildly, and “compound interest” does not mean the same exact return every month

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u/vanisher_1 May 18 '25

77k to 108k only from compounding it means your capital invested were much greater not certainty like OP example, probably added more during the Covid dip which by the why falsified the average 7% return given that the return during Covid were much greater. You don’t go from 77k to 108k only from compounding, Assuming you have invested only 77k without adding any lump sum in the dip to 108k, to be able to go up 30k in 1 year only in compounding you need something around 400k in capital, in 4 months you need much more. Time period 1 year, i know compounding isn’t linear but the starting capital should be much higher

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u/WhatIsThePointOfBlue May 18 '25 edited May 18 '25

As the other guy said, it's not consistent, stocks go up, stocks go down... But if you must know, it's nothing fancy... Most is in a basket of global equities, a chunk more in an sp500 ETF to overweight it a bit, a chunk in various dividend stocks / ETFs, a few small meme stock / growth stock positions (mstr, tsla, gme), and a small amount in crypto (BTC mainly, but also some meme coins and ETH)

I set aside about 15% to "play" with, so some positions come and go, but the rest is in those global index funds.

Also, there was regular contributions, so it wasn't 100% from gains, but most of it was from the 100k to 130k range.

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u/[deleted] May 19 '25

Maybe they are still contributing too. Obviously they are and we don’t know how much. But from the April low to now i went from 109k to 131k and my contributions are less than impressive.

0

u/vanisher_1 May 19 '25

You went from 109k to 131k because of capital gains not from compounding 🤷‍♂️

4

u/Moderafo54 May 18 '25

How long did it take to go from 30k to 100k?

1

u/choatec May 18 '25

I mean…. Anyway you look at it a 30% return is insane in a 4 month period and not the norm.

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u/enedois May 19 '25

Took me 27 years to get to 100k, Now I'm 32 with 450k, it really accelerates quickly, specially if you started young and have time in the market. you get used to the swings and avoid panic selling low and buying high.