How to invest 100,000 principal? Five major commodities practical comparison to find the wealth path that suits you best

Year-end is here, and soaring prices have become a reality everyone can feel—egg prices, bubble tea, and lunchboxes have all increased by 20~30%, while mortgage rates have jumped from 1.31% during the pandemic to 2.2%. For a ten-million mortgage, the interest difference alone amounts to about 89,000 per year. In such an environment, passive income and investment returns have become essential tools to combat inflation.

Many people consider their first hundred thousand as a milestone, but the key question is: after reaching ten thousand, what should you invest in to effectively accumulate wealth?

Three Premises You Must Clarify Before Investing Ten Thousand

Investment logic varies completely at different life stages. Stable employees are suited for dividend-paying products; high-income professionals are better off leaving index funds alone; young people with plenty of time can consider short-term thematic trades. But regardless of the path chosen, three things must be settled first: keep track of cash flow, find targets that match your expenses, and give your investments enough time.

The purpose of bookkeeping is to identify “idle money”—funds that won’t affect your daily life. If you need to use money when your investments decline, you’ll have to sell at a loss, which is especially detrimental to long-term wealth growth. Once you understand your income and expenses, you can estimate how much truly idle cash you have to invest.

Next is “matching income to expenses.” Fixed monthly bills like phone and utilities, or annual goals like travel or a new phone, can be linked to different investment targets. Monthly expenses can be covered by dividend funds or high-yield ETFs, while larger expenses require higher returns, which determines whether you adopt a conservative or aggressive strategy.

Performance and Future Outlook of Five Investment Products Over Ten Years

Gold: A Classic Hedge Against Inflation

Gold has risen 53% over the past ten years, averaging 4.4% annually, mainly from price appreciation rather than dividends. Its core value lies in hedging—during economic instability and increased market volatility, gold tends to strengthen significantly. The rallies from mid-2019 to mid-2020 and from 2023 to 2024 correspond to major events like COVID-19, US rate cuts, and the Russia-Ukraine war.

Ten-year expectation for investing 100,000 in gold: With an average annual growth of 4.4%, the assets would be about 1.53 million after ten years. But gold’s primary role is as a hedging tool in asset allocation, not a wealth-building instrument.

Bitcoin: A High-Volatility, High-Opportunity New Asset

Bitcoin has surged astonishingly over the past decade, but each bull cycle is driven by different factors. Exchange failures, cross-border remittance needs, US dollar substitution effects, halving cycles, and spot ETF launches—these are all one-time factors that cannot be replicated.

Currently, Bitcoin is priced at $87.22K, with room for correction from its all-time high, down 8.05% over the past year. In the short term, the halving is complete, spot ETFs are listed, and geopolitical demand provides support—these are bullish factors. But in the long run, replicating the 170-fold increase of the past decade is unlikely.

Suggested strategy: accumulate at lows, reduce holdings moderately at highs. Do not allocate more than 10~15% of your total assets to Bitcoin. It’s an excellent speculative asset but not suitable as a core holding.

0056 (Taiwan High-Dividend ETF): A Stable Monthly Dividend Choice

0056 focuses on high dividend yield, with 60% dividend payout and 40% stock price appreciation over the past decade. Taiwan stocks have maintained a dividend yield around 4%, so the expected return over the next ten years should be similar.

Ten-year expectation for investing 100,000 in 0056: Principal grows by 40,000, with an average annual dividend of 6,000. It may not seem much, but if you keep investing 100,000 each year, after ten years, dividends could reach about 100,000 annually. After thirteen years, dividends could cover a new car; after twenty-five years, annual dividends could exceed 220,000. Long-term, dividends might even surpass your salary.

Suitable for: Stable workers seeking cash flow, conservative investors afraid of volatility. The biggest advantage of this approach is quick returns and ease of persistence, but the power of compound interest is limited.

SPY (US S&P 500 ETF): An Unstoppable Compound Growth Machine

SPY has risen from $201 to $434 over the past ten years, a 116% return. The yield is only about 1.1% annually (roughly 0.75% after 30% tax), mainly from capital appreciation.

Ten-year expectation for investing 100,000 in SPY: worth about 216,000 after ten years. But SPY’s real strength lies in long-term compounding—if invested for 30 years, that initial 100,000 could grow to 1 million, and with 30 years of contributions totaling 3 million, the final return could reach 12.23 million.

Warren Buffett has said that as long as the US dollar remains the global settlement currency, the US will not go bankrupt, and assets will steadily increase. This kind of compounding is virtually risk-free, but the cost is almost no cash flow along the way, requiring income from work and salary growth to sustain.

Suitable for: High-income earners, stable income individuals with a long-term perspective.

Berkshire Hathaway (BRK.B): The Ultimate Choice for Compound Growth Masters

Berkshire’s profit logic is replicable: accumulate capital through insurance, use low-interest loans for arbitrage. For example, issuing 0.5% interest bonds in Japan to fund Japanese stocks, where dividend yields exceed borrowing costs, creating automatic profit; or issuing savings policies in the US to buy government bonds, where large interest spreads enable arbitrage.

Core advantage: This logic won’t change with Buffett’s passing. As long as the management strategy remains, profit methods continue. In other words, Berkshire has institutionalized the compound growth mechanism.

Ten-year expectation for investing 100,000 in Berkshire: Stable historical performance, with an average annual return of 10%~12%. After ten years, 100,000 could grow to 250,000~300,000. But even more attractive is the subsequent acceleration of compound effects.

Practical Framework for Investing Ten Thousand

The key decision point is: Do you want to start cashing out now, or let your money grow and enjoy the returns later?

Dividend products (0056) are suitable for those who want immediate feedback, because dividends are quick and easy to hold onto; index and company stocks (SPY, BRK.B) are better for those who can wait, as the power of compound interest far exceeds dividend income.

The True Cost of Investing: Time vs. Research

Many overlook one point: short-term thematic trades (like following travel stocks or AI concepts) may offer quick returns, but require constant monitoring, news analysis, and tracking major capital flows. This often takes time away from your main job, which can be counterproductive.

Instead of spending time figuring out when to buy or sell, it’s better to choose a suitable product and hold it for ten years. Time itself is the best multiplier of investment returns.

Summary: The Core Secret to Turning Ten Thousand into a Million

Investing 100,000 is not the problem; choosing the right method for your life stage is. Stable job? Choose dividends. High salary? Focus on growth. Young and have time? Opt for short-term trades. Regardless of the path, the key is: keep track of cash flow, find targets that match your expenses, and give your investments enough time.

As long as these three points are in place, becoming a small millionaire or billionaire is just around the corner.