Well, it helps! Let's say you can compound at 30% and you want to retire with $5M in 8 years. How much do you need to start with? The math is relatively simple: x*(1.3)^8 = 5,000,000, so x = $613,000. How long would it take if you start with only $25,000? Again, the math is simple: 25,000*1.3^x = 5,000,000. 1.3^x = 200 so x = ln(200)/ln(1.3) = 20.19 years. I was compounding at a significantly higher rate than 30%, and although I started with only $160K, I was able to inject a great deal of additional cash using cash-out mortgages.
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