Part 5/8:
Once that elusive $100,000 is reached, wealth accumulation accelerates through the power of compounding returns. The article illustrates this by outlining a scenario in which investing consistently in an S&P 500 ETF not only allows for steady growth but ensures that a growing proportion of the portfolio stems from returns rather than contributions.
The power of compounding becomes evident when comparing timeframes; what once took years of saving becomes increasingly efficient as contributions grow larger, and thus wealth snowballs. The exponential growth illustrates the importance of getting to the first $100,000 quickly to harness that momentum.