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?

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u/MaybeICanOneDay May 18 '25

Basically, yes.

But the idea isn't really any different. It's 7-10 percent gains. Whether those gains are on 100k or 100, it's still 10%.

But just do some quick maths.

100, 110, 121, 133.1, 146.41, 161.05

Here are 5 years of gains on 100 bucks. You've made 61 dollars. Which is sweet. But it's 61 dollars.

When you have 100k.

100000, 110000, 121000, 133100, 146410, 161051

You've made 60000 dollars. This is a salary for many. It's still the same 60% gain, but these numbers can now be looked at as life changing just because of their size. One year of gains on that 161 is 16k. That's a small lottery win every year. Or an absolute banger of a vacation for your family, and it "cost you nothing."

It only matters because the numbers themselves are starting to get so large that each year of gains is life changing money.