What can you buy with 100,000? An investment roadmap for small investors to quickly accumulate assets

Preface: Why You Must Invest Now

As the year comes to an end, many people feel the pressure of rising prices—eggs at 10 NT dollars each, bubble tea up by 20~30%, and mortgage rates increasing from 1.6% pre-pandemic to 2.2%. These seemingly small numbers actually have a huge impact on long-term asset planning. For example, with a 10 million NT dollar mortgage, an increase in interest rate from 1.31% to 2.2% results in paying an extra 89,000 NT dollars in interest annually.

Faced with accelerating inflation, saving money becomes less and less worthwhile. That’s why investing and financial management are no longer optional—they are essential.

The Three Core Elements of Investing: Mindset, Projects, and Time

Many people misunderstand investing, thinking it requires a large amount of capital to start. In reality, investing is like running a business; the most important factors are the right mindset, suitable project choices, and sufficient time.

Today, let’s talk about: How to start your investment journey with 100,000 NT dollars and build your own wealth compound mechanism.

Analysis of 5 Investment Products and Expected Returns

Before choosing an investment, it’s important to understand the main options available in the market.

1. Bitcoin (BTCUSD): High-risk, high-reward speculative asset

Bitcoin has accumulated over 100 times growth in the past 10 years, but its volatility is extreme. Unlike gold’s safe-haven properties, Bitcoin’s price fluctuations are related to geopolitical factors, policy changes, institutional recognition, and more.

Current Data (December 2024): Bitcoin price is about $86,950, with a 24-hour change of -0.60%. In the short term, factors like halving events, ETF listings, and policy support are bullish, but long-term expectations should remain rational—repeating the past 170x growth is unlikely.

Investment Tips:

• Short-term opportunities exist, but long-term full holdings are not recommended
• Take profits at highs, buy on dips
• Do not allocate more than 10~15% of total assets, as risks are high
• Bitcoin is fundamentally a speculative asset, suitable for those who have time to study the market

2. Gold (XAU/USD): Stable safe-haven asset

Gold appreciated by 53% over the past 10 years, averaging 4.4% annually, performing well during unstable economic periods. Major price surges occurred during specific times: 2019~2020 (COVID-19, Fed rate cuts), and 2023~2024 (geopolitical conflicts, inflation concerns).

Investment Tips:

• Suitable as a hedge in asset allocation
• Long-term allocation of 10~20% in gold to reduce overall volatility
• No dividends; returns come solely from price differences
• Negatively correlated with stocks, good for risk diversification

3. High-dividend ETF - 0056: The first choice for stable cash flow

0056 is Taiwan’s most well-known high-dividend ETF, with a 60% cumulative dividend payout and 40% stock price increase over the past 10 years. Its strategy focuses on high-dividend-paying companies, so investors mainly earn from stable dividends rather than capital gains.

Historical Data:

• Principal increased by 40% over 10 years
• Dividends accumulated to 60%
• Expected similar trend over the next 10 years, doubling assets

Practical Example: Invest 100,000 NT dollars, after 10 years, assets grow to 140,000 NT dollars, with 60,000 NT dollars in dividends. It seems ordinary, but if you continue investing 100,000 NT dollars annually:

• After 13 years, annual dividends reach 100,000 NT dollars
• After 25 years, annual dividends exceed 220,000 NT dollars

Coupled with labor insurance and pension, small investors can enjoy a comfortable retirement.

Investment Advice: Best suited for working professionals with stable jobs but limited time to research markets.

4. US Stock ETF - SPY: Globally recognized long-term compound interest king

SPY tracks the top 500 US companies, with a low dividend yield (1.6%, about 1.1% after tax), but strong capital appreciation. Over the past 10 years, SPY rose from 201 to 434, with a total return of 116%.

Long-term compound interest effect:

• Initial investment of 100,000 NT dollars
• About 1,100 NT dollars in dividends annually
• After 10 years, assets grow to 216,000 NT dollars

30-year compound interest projection: Start with 100,000 NT dollars, invest an additional 100,000 NT dollars each year (total 3 million NT dollars), after 30 years, assets reach 12.23 million NT dollars.

Investment Tips:

• Suitable for high-income groups (doctors, engineers, executives)
• No need to constantly monitor market fluctuations
• This is the “lowest risk, highest reward” lazy investment method
• The downside is less cash flow during the process; requires stable income

5. Berkshire Hathaway (BRKB.US): The holy grail of compound investing

Warren Buffett’s company, with a unique and replicable profit model. It accumulates cash flow through insurance companies and then uses low-interest financing for arbitrage.

Example: The company issues 0.5% annual interest bonds in Japan, uses the funds to buy Japanese stocks (dividends usually higher than 0.5%), and profits as long as the principal isn’t lost. Similar strategies include issuing 30-year savings insurance in the US to buy US Treasuries, achieving stable arbitrage.

Investment Tips:

• Buffett’s death does not change his profit logic; the company’s strategy continues
• Suitable for investors who want all earnings to “compound”
• Long-term allocation is highly reliable

Investment Strategies for Different Groups

Stable-working Professionals (Small Investors)

Features: Steady but limited income, time occupied by work

Best Strategy: Dividend funds or high-yield ETFs (like 0056)

The reason is simple—your job itself is a “stable income asset,” so your investments should match that. Choose products that generate stable cash flow, which can bring a sense of achievement in investing. Over time, dividends can even surpass your salary, creating a “monthly pension.”

This approach’s asset growth is slower than aggressive investing, but it’s quick to yield, easy to stick with, and psychologically less stressful.

High-income Groups

Features: High income, strong risk resistance, limited time

Best Strategy: Index ETFs (SPY, 0050) or leveraged real estate investments

High income means you don’t need rapid cash flow from investments; focus on capital appreciation. ETFs like SPY automatically “weed out the weak and keep the strong”—as companies’ strength varies, the index adjusts its holdings accordingly.

Leverage investment example: Buy a 10 million NT dollar house, pay only 2 million NT dollars as a down payment, with an annual interest of 200,000 NT dollars. After 5 years, if the house price rises to 12 million NT dollars and you sell:

• Total profit: 2 million NT dollars
• Minus interest costs: 1 million NT dollars
• Actual net profit: 1 million NT dollars
• Return: 50% (far higher than the 20% without leverage)

Assumes you are confident the property will appreciate and can handle fluctuations. High income provides this leverage.

Time-rich groups (students, salespeople)

Features: Plenty of time, can gather market info, income is unstable

Best Strategy: Short-term speculation and thematic trading

They don’t rely on time to accumulate wealth but on turnover rate and information advantage. For example, if the Fed stops raising interest rates → future rate cuts → increased dollar supply → opportunities to short the dollar; dollar depreciation stimulates crypto → opportunities for long positions.

Similarly, government opening up tourism → travel stocks rise; AI boom → tech stocks soar. By grasping “news” and predicting “main capital flows,” you can follow the trend.

Risk Warning: This is speculation, not investment. Requires constant monitoring, information gathering, and market sentiment awareness. Returns come from market “over-optimism” or “over-pessimism” reactions.

Start with Budgeting: Cultivate Investment Mindset

No matter which investment method you choose, the first step is keeping accounts.

Treat yourself as a company, understand your income and expenses, and find ways to increase income and cut costs. The key is to use disposable income—funds that won’t affect your daily life.

Why? Because investment prices fluctuate. If you need money when prices are down and are forced to sell at a loss, it’s very detrimental to long-term wealth growth.

Find the Right Assets, Match Expenses with Income

Investing needs purpose. Simply seeing your bank balance grow isn’t motivating; true motivation comes from: ‘Finding income sources for every expense’

Examples:

• Monthly phone and utility bills? Choose a monthly dividend fund with a 7~8% yield; invest 100,000 NT dollars, get 7~8 thousand NT dollars annually, about 600~700 NT dollars per month, just enough to cover communication costs
• Want a new phone or to travel abroad? Need 30~40% returns, achievable through arbitrage or short-term trading
• Want passive income to surpass your salary? Investing in SPY for 30 years might be more practical

With clear goals, choosing assets becomes a matter of “strategic pairing.”

The Advantage of Small Capital: Flexibility and Leverage

Small capital has advantages that large funds don’t—no market impact, flexible operations.

A 20% annual return is the achievement of top investors, but Buffett once said: if operating with only 1 million USD, the annual return could reach 50%. Different capital sizes mean different strategies.

Small investors can act like “nomadic tribes,” investing wherever opportunities arise. Many trading platforms now support US stocks, indices, precious metals, and cryptocurrencies, with low minimums and leverage to amplify gains.

The key: As long as you identify the right direction, using turnover rate to exchange for returns, you can quickly grow your principal. Meanwhile, reinvesting your work income as new capital, with compound interest, your assets will grow like a rolling snowball.

Final Reminder: Choice Matters More Than Effort

The three investment methods introduced above are not inherently good or bad. The best method is the one that suits you.

Even the best investment strategy is useless if it doesn’t fit your lifestyle and risk tolerance—it’s just “copying others.”

Finding the highest return, lowest risk, and most suitable pace is the secret to long-term wealth accumulation.

100,000 NT dollars isn’t a lot, but it’s enough to start your investment journey. As long as you prepare the three elements of “mindset, projects, and time,” becoming a small millionaire is just around the corner.