After deposits exceed 100,000, the 5 biggest pitfalls to avoid.

What level is a deposit of 100,000? In the United States, 57% of people can't even scrape together $1,000 for emergency funds, so you have already surpassed the majority. But don't celebrate too early—many people who save up to this amount end up sabotaging themselves.

The most heart-wrenching one: High-interest savings account vs lying in a regular account. Big banks give you 0.x%, while online banks with FDIC insurance can offer 4%+. What's the difference for a hundred thousand? An extra $3000 in free interest every year.

But that's not enough. Just putting money in a savings account is always inefficient — historically, the stock market has an average annual return of 10%. With the same 100,000, after 30 years: a high-interest account gives you 330,000, while the stock market gives you 1.4 million. That's 4 times more. The key point is that the stock market hasn't lost money in 20 years (based on rolling returns), and the long-term risk isn't as big as you might think.

Things you should never do: go all in on a single investment. Dreaming of getting rich overnight? The problem is that if you lose 50%, you need to gain 100% just to break even. You spent years saving up a hundred thousand, and it can all be gone with one decision.

There are two more pitfalls: thinking that 100,000 is enough (it’s definitely not), and keeping it in a regular account where taxes will slowly eat away at it. Accounts like IRA/Roth exist to avoid taxes.

In a nutshell: One hundred thousand is the beginning, not the end.