What should I invest 100,000 in? Three wealth-building shortcuts for small investors

Many people think that investing is only worth considering once you’ve accumulated millions, but today, that mindset might keep you busier and poorer. Look at reality: egg prices are rising, bento prices are rising, rent is increasing—all things that can’t go back. When mortgage rates stabilize at 2.2%, every dollar’s purchasing power is being diluted. For the average small saver, saving up to 1 million may take years, but reaching 100,000 is an achievable goal with some effort.

Don’t underestimate this 100,000. It’s a seed, and also your weapon against inflation. Investing doesn’t require a huge principal, but rather a strategic layout—like running a business: correct mindset, promising projects, and ample time.

Basic homework before investing: bookkeeping, goals, mindset

Any investment should start with three questions: How much idle money do I have? What are my goals? How much time and energy can I dedicate?

First, only invest with idle money—funds that won’t affect your daily life. After all, investments don’t only go up; they can also fall. If the price drops at a critical moment, you might have to cut losses with regret, which is bad for asset growth. Therefore, bookkeeping is crucial. Treat yourself like a company: understand your income and expenses to free up steady “free cash flow,” which is the foundation of confidence in investing.

Second, set a concrete goal. Simply seeing your bank balance grow isn’t motivating; you need a reason to strive—this is about “finding income to cover expenses.” For example, monthly phone bills, utilities, or annual travel plans or new phones. With clear goals, you can reverse-engineer your investment amount and choose suitable assets.

For recurring expenses, consider monthly dividend funds or high-yield assets. Many funds now offer 7–8% dividends, meaning investing 100,000 yields 7,000–8,000 annually, about 600–700 per month—enough to cover your phone bills. If your goal is a new phone or a trip costing 30,000–40,000, you’d need a 30–40% return on 100,000, which isn’t achievable with just stock savings; more aggressive strategies like swing trading are needed.

How to choose your investment route with 100,000: based on your conditions

Different people have different advantages and limitations. How you use 100,000 should vary accordingly.

Stable job small savers: Use time to buy space

Your advantage is steady cash flow, but savings grow slowly. The best approach is leveraging compound interest—dividend funds or high-yield ETFs. Over time, the dividends can even surpass your salary, effectively helping you earn a monthly pension. While dividends are paid out and don’t compound, leading to slow asset growth, they offer quick returns and are easier to stick with—more suitable for conservative small savers.

High-income earners: Projects and time are key

For example, doctors, engineers, and other high-salary professionals who lack time to monitor markets should focus on index ETFs tracking the market. Taiwan’s 0050 tracks the top 50 companies; the US’s SPY tracks the top 500. These indices automatically “weed out the weak,” and over the long term, with enough time, returns are impressive.

The S&P 500 has averaged 8–10% annual return over the past 100 years, far exceeding the 5% USD savings rate. Investing 100 per year at 10% growth yields about 236 after 10 years; at 5%, only 155. The difference is nearly a principal amount.

But stock markets carry risks. Recent years have seen major crashes—2000 dot-com bubble, 2008 financial crisis, 2020 COVID-19, 2022 global inflation. Although markets rebounded and even hit new highs, if investors need cash midway, they must cut losses. High-income earners, with stronger risk tolerance, are better suited for long-term investments.

Besides stocks, moderate leverage in real estate can be an option. If you believe the property price will rise and you qualify for low-interest loans, the overall return can be better. The same thinking applies to other assets: if you can time the market for rapid growth and use leverage, your returns will be higher.

Time-rich active investors: Capture trends and volatility

If you’re a student or have a flexible job, and can research markets, try catching trends and fluctuations to grow wealth through turnover. For example, when the US interest rate cycle peaks, it will likely start cutting rates or implementing QE, increasing dollar supply, making shorting the dollar profitable. A weaker dollar also boosts cryptocurrencies, so going long on crypto can be good.

Additionally, markets often have “hot themes” that get hyped—AI stocks are a prime example.

What assets can 100,000 buy? Four major appreciation opportunities

Once you have a strategy, consider which assets are worth investing in over the next decade. I categorize future assets into four functional roles:

Defensive assets: Gold and hedging

Gold doesn’t pay dividends; gains come from price appreciation. It effectively hedges against inflation and currency devaluation over the long term. During economic instability or market volatility, gold’s safe-haven role becomes more prominent.

Major gold price surges occurred mid-2019 to mid-2020, and again from 2023 to 2025, driven by COVID-19, US rate cuts, and geopolitical tensions.

Transformation assets: Digital assets’ future

Bitcoin is no longer just a speculative tool. As it gets included in ETFs, sovereign funds, and corporate balance sheets, it is transforming into a digital reserve asset.

Over the past decade, Bitcoin has experienced multiple bull-bear cycles, with over 1,000-fold gains. As of February 2026, BTC is at $64,150, with a 1-year change of -33.33%. Despite short-term volatility, the long-term trend reflects increasing institutional participation and policy support.

Growth assets: Engines of future expansion

Growth assets are those with potential for sustained revenue and profit growth in the coming years. Examples include data centers, AI servers, and cloud computing—these require high entry barriers, but once established, they have deep moats. Be prepared for volatility.

NVIDIA (NVDA) leads AI computing, with GPUs and data center platforms as core infrastructure for large AI models. Its strong tech integration maintains advantages and margins. For investors, NVDA represents the long-term story of commercialized computing power and profit expansion.

TSMC is the world’s leading semiconductor foundry, supporting AI, metaverse, and automation industries. With advanced processes like 3nm and 2nm, and close cooperation with major AI firms, it offers stable long-term orders. For Taiwan investors, TSMC is the most direct and relatively safe way to participate in global AI growth.

NextEra Energy (NEE) is one of the largest green energy and grid companies in the US, with extensive renewable and grid assets. It benefits from US energy transition policies, with stable profits and cash flow. As AI energy demand surges over the next decade, investing in power and grid infrastructure is more resilient than just solar or wind.

Foundation assets: Stable long-term holdings

These assets have one task: not to be left behind by the world. They may not perform the best every year, but long-term, as AI boosts productivity, they will reflect the gains steadily.

High-dividend ETFs—0056 is Taiwan’s most famous high-yield ETF, investing in high-dividend stocks. Over 10 years, 0056 has paid out about 60% of the principal in dividends, with a 40% increase in share price. Future returns are expected to be similar, doubling the assets, with 60% paid out and 40% reinvested. Investing 100,000 now, in 10 years, the principal could grow by 40,000, with annual dividends around 6,000.

Imagine: if you invest 100,000 every year and reinvest the dividends, after 13 years, your annual dividend could reach 100,000; after 25 years, over 220,000 annually. After retirement, with labor insurance and pension of about 20,000/month plus 40,000 in dividends, life becomes more comfortable.

Index ETFs—SPY tracks the top 500 US companies. Over 10 years, SPY rose from 201 to 434, with a 116% total return. The average dividend yield is about 1.1%, with an 8% annual capital gain. Despite lower dividends (and 30% dividend tax), its capital growth is unmatched in Taiwan. If you believe the US economy won’t collapse, this is the most stable long-term wealth-building tool. The downside is minimal cash flow during accumulation; mainly expecting asset appreciation.

Starting a wealth compound journey from 100,000

Many of these investment methods don’t require large capital—just a few thousand NT dollars for regular investments or trading derivatives (CFDs) to participate in big trends.

As long as you have good investment mindset, select promising projects, and give enough time, these are valuable assets. Success depends not on initial capital but on patience for compound growth and time for research and timing. When these three are in place, starting from 100,000, small wealth can eventually grow big. With work income and investment income combined, becoming a small millionaire or billionaire is just around the corner.