"Investing 100,000 isn't a dream? How small investors can achieve wealth multiplication through asset allocation"

In an era of stagnant wages and soaring prices, many people mistakenly believe that investing is only for millionaires. But in reality, as long as you have 100,000 NT dollars, with the right investment mindset and strategic allocation, this amount can become a powerful tool against inflation. The issue isn’t the size of your capital, but whether you know how to maximize the potential of that 100,000 NT dollars.

Many small investors save for years to reach 1 million NT dollars, but 100,000 NT dollars is an achievable goal in just one or two years of effort. The key is not to underestimate this seed capital — it’s like a seed that can grow into a towering tree, and the crucial part is whether you grasp the core logic of investing.

Why is 100,000 NT dollars a watershed for investing?

In the past, people generally believed that large capital was necessary to start investing. But today’s financial environment has rewritten that rule. Mortgage rates stay above 2%, eroding the purchasing power of every dollar; prices for eggs, meals, and rent have never been higher. For young people just entering the workforce, passively waiting for salary increases is no longer enough.

The reason 100,000 NT dollars is a turning point is because it’s enough to start systematic asset allocation. Whether it’s regular fund purchases, ETF investments, crypto holdings, or short-term trading, you can use this money to make real moves. Compared to scattered thousands of NT dollars, the psychological impact of 100,000 NT dollars is completely different — you start to think seriously about returns, not just savings.

The three key elements determining investment success: mindset, projects, time

Many people oversimplify investing, thinking that buying the right stock will double their money. In fact, successful investing requires three indispensable elements.

First element: Investment mindset

Building correct investment concepts is more important than stock picking. First, always invest only with “disposable money” — funds whose loss won’t affect your daily life. Second, manage your finances like running a company; bookkeeping isn’t just about saving money, but about identifying stable “free cash flow.” This cash flow is the foundation of your investment confidence.

Many neglect bookkeeping, and when they need money, their investments happen to be in declining assets, forcing them to sell at a loss. This can be fatal to wealth accumulation. Therefore, treat yourself as a small business — understand your income and expenses structure before starting any investment.

Second element: Project selection

With the same 100,000 NT dollars, some choose to receive monthly dividends, others engage in swing trading, and some invest in long-term growth assets. There’s no absolute right or wrong — only what’s “suitable for you” versus what’s “not suitable for you.”

The core is “finding income for your expenses” — first, clarify what problem this 100,000 NT dollars should solve for you. If you need to pay for communication, utilities, or rent monthly, then high-dividend assets are suitable, even with a 7–8% annual return; 100,000 NT dollars can generate 600–700 NT dollars per month. If you want a new phone or to travel abroad, you might need a 30–40% return, which requires more aggressive swing trading strategies.

The advantage of small capital is flexibility. You can quickly switch directions based on market opportunities, entering and exiting without impacting the market. Many trading platforms are very friendly to small investors, with low entry barriers for US stocks, indices, precious metals, and cryptocurrencies.

Third element: Time investment

Here, “time” has two meanings. One is the compound interest cycle — the longer your investment horizon, the more astonishing the compounding effect. The other is research time — if you adopt an active trading strategy, you need to spend time analyzing market information and catching trends.

Which strategy to choose depends on how much time you can dedicate. If you’re busy and can’t monitor the market constantly, passive ETF dollar-cost averaging is best. If you’re a student or have flexible work hours and can study the market, swing trading might yield higher returns.

Choosing an investment strategy based on your conditions

Not all investment methods suit everyone. Leveraging your strengths and avoiding your weaknesses is the secret to long-term success.

Scenario 1: Stable job, steady cash flow

Your advantage is stable income; your disadvantage is slow capital accumulation. The best fit for you is dividend funds and high-yield ETFs. These generate steady cash flow, like a monthly pension.

While monthly dividends don’t compound, they can grow your assets relatively quickly. Over time, dividends can surpass your salary. If you invest 100,000 NT dollars annually, after 13 years, just from dividends, you could have an annual income of 100,000 NT dollars. After 25 years, annual dividends might reach 220,000 NT dollars — imagine, combined with labor insurance and pension, your retirement could be very comfortable.

Scenario 2: High income but limited time

Professionals like doctors and engineers earn high salaries but lack time to monitor the market. Index ETFs tracking major markets are ideal, such as Taiwan’s 0050 (tracking Taiwan’s top 50 companies) or the US’s SPY (tracking the S&P 500).

These indices automatically “weed out the weak and keep the strong,” providing substantial long-term returns. The S&P 500 has averaged 8–10% annual returns over the past century, far exceeding the 5% yield of dollar deposits. Investing 100,000 NT dollars for 10 years at 8–10% can double your assets, while at 5%, only a 50% increase — a big difference in principal.

Be prepared for market volatility: the dot-com bubble in 2000, the 2008 financial crisis, COVID-19 in 2020, and inflation in 2022 all caused major dips. The good news is, markets tend to recover and reach new highs after each correction. The bad news is, if you need cash midway, you might have to sell at a loss. This strategy suits those with strong risk tolerance.

Additionally, moderate leverage in real estate can be considered. High income makes it easier to get low-interest loans; higher leverage and lower borrowing costs improve investment returns. Since young people have less opportunity cost, even if they fail, they have room to adjust.

Scenario 3: Ample time and willingness to research

Students or entrepreneurs with more free time can consider catching trends and volatility to accelerate wealth accumulation.

For example, as US interest rate hikes peak and move into cuts or QE, the dollar supply increases, making shorting the dollar profitable. A weaker dollar can boost cryptocurrencies, so positioning in digital assets is also a good idea. Moreover, markets often have “hot topics” like 5G, AI, renewable energy — related stocks can surge.

However, active trading can interfere with your main job, potentially hindering promotions or salary increases. Only when your primary work performance is stable should you invest extra time in research.

Four asset roles for allocation guidance

Once you’ve identified your strategy, choose specific assets based on their roles, not just industry categories:

Defensive assets: Gold

Gold has no dividends; all gains come from price appreciation. Over the long term, gold effectively hedges against inflation and currency depreciation. Its risk mitigation is especially valuable during economic instability or market turbulence.

Historically, significant gold price rises occurred during mid-2019 to mid-2020 (COVID-19, US rate cuts) and from 2023 to 2025 (geopolitical risks, high inflation). This shows gold’s value peaks during periods of high uncertainty.

Transformation assets: Bitcoin

Bitcoin has evolved from a speculative tool to a digital reserve asset. As it’s included in ETFs, sovereign funds, and corporate balance sheets, its role is changing.

Over the past decade, Bitcoin surged from under $1 to tens of thousands of dollars, despite volatility. Currently around $64,060, it experienced about a 33% decline over the past year, but its status as “digital gold” is increasingly recognized by institutions. For investors willing to endure short-term fluctuations, Bitcoin remains a long-term allocation option.

Growth assets: Tech and energy

These are assets with potential for sustained high revenue and profit growth in the coming years. Examples include data centers, AI servers, and cloud computing — high-cost, high-entry barriers, but with deep moats once established.

NVIDIA (NVDA) leads AI computing. Its GPUs and data center platforms are core infrastructure for large AI models, with strong tech advantages and high margins. NVDA represents not just the AI boom but the long-term story of computational capability commercialization and profit expansion.

TSMC (TSM) is the world’s leading semiconductor foundry, supporting AI, metaverse, and automation industries. Its technological leadership, close cooperation with major AI firms, and steady long-term orders make it a resilient global supply chain hub. For Taiwan stock investors, TSMC is a direct and relatively stable way to participate in global AI growth.

NextEra Energy (NEE) is one of the largest green energy and grid companies in the US. It owns extensive renewable assets, combining power generation, storage, and grid infrastructure. With natural advantages in the US energy transition, its cash flow and dividends are stable. As AI-driven electricity demand surges over the next decade, investing in energy infrastructure is more reliable than just solar or wind.

Foundation assets: Index ETFs

These assets have a single mission: not to be left behind by the world. They may not outperform every year, but as AI boosts overall productivity, they tend to reflect global economic growth steadily over the long term.

0056 (Taiwan High Dividend ETF) focuses on high-dividend stocks, distributing almost all profits annually, making capital gains limited. Over the past decade, it paid out 60% in dividends and saw a 40% increase in share price. The next decade is expected to be similar, roughly doubling assets.

Dividends may seem modest, but continuous annual investments of 100,000 NT dollars will generate compounding effects. After 13 years, dividends alone could provide an annual income of 100,000 NT dollars; after 25 years, over 220,000 NT dollars annually. Coupled with labor insurance and pension, retirement life becomes comfortable and even more enjoyable.

SPY (US S&P 500 ETF) tracks the 500 largest US companies. Over the past decade, its price rose from 201 to 434, with a 116% total return, averaging about 1.1% in dividends and 8% in capital gains annually. Although dividends are lower (and taxed at 30%), the growth in capital is substantial.

If you believe the US economy won’t collapse, SPY is a reliable long-term wealth-building tool. The downside is minimal cash flow; the overall result depends on asset appreciation. This approach requires stable income to sustain investments.

Risk warning: Not all strategies suit everyone

Many novice investors treat losses as tuition fees, but many losses are avoidable. Before investing, consider:

Is this truly “disposable money”? If you need to access these funds within three years, avoid high-volatility investments. During market crashes, you might be forced to sell at a loss.

Can you handle psychological fluctuations? Watching 100,000 NT dollars shrink to 80,000 and then recover to 120,000 can be stressful. If you can’t tolerate this, choose less volatile assets.

Do you have time to research? Not all investments are “buy and hold.” Some require regular review and adjustments. Overestimating your ability can lead to poor execution.

Using leverage can amplify gains but also risks. Without sufficient knowledge and risk management experience, it’s best to avoid leverage.

Conclusion

With the right investment mindset, 100,000 NT dollars can be the starting point for wealth multiplication. From cultivating disciplined bookkeeping, choosing assets suited to your conditions, to leveraging long-term compounding or active trading, becoming a small millionaire is no longer a distant dream.

Most failures aren’t due to insufficient capital but lack of patience, clarity of thought, or choosing the wrong strategy. As long as you have these three — proper investment mindset, suitable projects, and enough time — congratulations, the period of wealth growth has begun. The key now is persistence and patience.