Reply to When does contributing to your portfolio start to feel pointless?

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[quote=Anonymous][quote=Anonymous]We are able to save around 100k a year right now with current incomes and have a net worth of 1.5M. The stock market returns 10% on average, so avged out this 1.5M would grow by 150k on its own which is already more than we contribute every year. If had 5M, it would grow an average of 500k. This is 5x our contribution rate.

At some point doesn’t it kind of feel pointless put more money into your account unless your income keeps scaling with your net worth? TBH if we had 5M which isn’t quite enough to retire I might redirect that 100k of earned income into something else like a sports car or fancy vacations, and just let the 5M compound. At this level your growth is more about market performance and not 9-5 salary.

Obviously I know 10% is just a long term average and it doesn’t mean a steady 10% every year, some years it might be up or down by 20%+. But it’s averaged 10%. [/quote]

I'm with you.  That's why we've stopped contributing to TSP / 401K.  There is no employer match, though which I would never skip.[/quote]

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