Start investing with 100,000: How should small investors choose to turn things around quickly?

Year-end is here, and everything has become more expensive—eggs, bubble tea, mortgage interest… Various expenses continue to rise, and it becomes clear that relying solely on a fixed salary can’t keep up with inflation. If you currently have 100,000 yuan, instead of letting it sit in the bank and depreciate, it’s better to think about how to invest so that your money can work for you.

How to invest 100,000? First, figure out what type of person you are

There is no one-size-fits-all investment plan; the key is to find a method that suits you. Depending on your time, income, and risk tolerance, your strategy will be completely different.

Stable job, fixed monthly salary? Choose stable dividends

If you’re a 9-to-5 worker with limited monthly investment capacity, don’t expect to get rich quickly. The best approach is to choose high-dividend ETFs or dividend-focused funds to generate monthly cash flow through your investments.

Taking Taiwan’s most well-known 0056 as an example, it has paid out 60% in dividends over the past 10 years, and its stock price has increased by 40%, effectively doubling the asset value. If you invest 100,000 annually, after 13 years, you will earn 100,000 in dividends each year—after 25 years, annual dividends could exceed 220,000—this is essentially helping you accumulate retirement funds.

High income, long-term? Just hold US stock index funds

High-income groups like doctors and engineers are best suited to invest in SPY (the US S&P 500 index). No need to watch the market daily, no need to pick stocks—just set up regular investments.

Over the past 10 years, SPY has risen from 201 to 434, a 116% increase. If you invest 100,000, it will grow to 216,000 after 10 years. Even more impressively, with continuous investment over 30 years, you can accumulate 3 million principal, which could grow to 12.23 million—this is the power of compound interest. The downside is that there is almost no cash flow during the process; it relies entirely on asset appreciation, so stable income is necessary to withstand stock market volatility.

Plenty of time, want quick accumulation? Try short-term themes

Students and salespeople with flexible schedules can try more aggressive methods. The focus isn’t on waiting, but on earning quick money through high turnover.

Follow news, industry trends, such as AI concept stocks, outbound travel stocks, which are hot topics for short-term speculation. As long as you catch the flow of major capital, jump in and ride the wave, then exit. The risk is higher, but the returns are faster, and it doesn’t require much time.

5 tested targets comparison, see who suits you best

1. Gold - Inflation hedge

Gold has appreciated 53% over the past 10 years, with an average annual return of 4.4%, mainly used to hedge against inflation. During economic instability (pandemics, wars), gold’s safe-haven properties become more evident. The downside is it pays no dividends; all gains come from price differences, so it’s suitable for long-term holding and risk diversification.

2. Bitcoin - Short-term explosive potential

Current BTC price: $87.33K, 24-hour change -0.56%

Over the past 10 years, Bitcoin has surged over 170 times, but the driving factors vary each time—exchange failures, geopolitical issues, monetary policy… Each bullish event is one-off, making it hard to predict the next 10x.

In the short term, events like Bitcoin halving, spot ETF approvals, or new geopolitical developments are bullish signals. But note that BTC is highly volatile, suitable as a speculative tool rather than a long-term asset. Investment proportion should not exceed 10-15% of total assets.

3. 0056 - Taiwan high-dividend ETF

Focuses on high-dividend strategy, with 60% dividends and 40% stock price growth over the past 10 years. Because it pursues high dividends, capital gains are hard to achieve. But the advantage is relatively stable dividends, about 4% annually, suitable for those seeking regular cash flow.

Invest 100,000, with about 6,000 in dividends per year—seems modest. But with continuous investment, after 15 years, you can receive over 4,000 monthly in dividends, marking the start of passive income.

4. SPY - US stock market tracker

Dividend yield is only 1.6% (about 1.1% after tax), but most returns come from stock price appreciation. Over the past 10 years, it increased by 116%. If you keep investing for 30 years, the compound effect is astonishing.

Risk: During long-term investment, you will experience multiple major declines (dot-com bubble in 2000, 2008 financial crisis, 2020 pandemic, 2022 inflation). You need mental resilience to hold through lows. Only high-income earners can afford to endure this.

5. Berkshire Hathaway - The holy grail of compound investing

Warren Buffett’s company has a unique profit model—using low-interest loans for arbitrage. For example, issuing bonds in Japan with 0.5% interest and using that money to buy higher-dividend Japanese stocks, earning the interest spread.

This model won’t change with Buffett’s passing; as long as the company’s strategy remains, it can continue to compound. Suitable for those who want all earnings reinvested for growth.

Practical tips: choosing is more important than effort

No matter which target you choose, the core logic is the same: first track your expenses to find idle cash, then find the right projects, and finally rely on time for compound growth.

• Idle cash is crucial; investment assets will fluctuate, and if you need to use the money suddenly, you might have to sell at a loss.
• Don’t blindly follow trends; even the best target is useless if it doesn’t suit you.
• Time is your best friend; 10,20,30 years of compound interest make a huge difference.
• Proper use of leverage (mortgages, margin trading) can boost returns, but your income must be stable.

100,000 may seem small, but as long as your mindset, projects, and time are right, even small investors can turn things around. The key is to start now—don’t wait until it’s too late.