Can You Retire by Investing in 0050 Every Month? Does 30 Years of Saving Really Lead to Financial Freedom?

Many people wonder: “If I invest in 0050 every month, can I really retire on it?” Let's use a historical backtest to see how your assets would grow after 10, 20 and 30 years, and whether 0050 really is the best choice for building long-term wealth.

Why 0050?

Yuanta Taiwan Top 50 (0050) is Taiwan's oldest ETF (exchange-traded fund). It tracks the 50 largest companies listed in Taiwan by market value, including TSMC, MediaTek and Foxconn (Hon Hai), and has performed steadily over the long run.

Three advantages of 0050:

1. Steady long-term returns: a historical annualized return of about 9–10% (with dividends reinvested).
2. Diversification: it holds 50 leading companies, which is safer than buying individual stocks.
3. Ideal for lazy investors: set up a fixed monthly investment and just keep buying.

On top of that, 0050's holdings automatically drop the weak and keep the strong as the market changes, keeping the portfolio high-quality. For example, HTC, once a 0050 holding, was removed as its market value fell, while Novatek (3034) was recently added after strong growth. 0050 adjusts its portfolio over time so it stays competitive.

Backtest: NT$10,000 a month in 0050 after 10, 20 and 30 years

Assumptions

• Invest NT$10,000 a month (about US$300; a fixed monthly amount)
• 10% annualized return (based on historical data)
• Dividends reinvested

The total value (including returns) is calculated with the compound interest formula for regular monthly investing:

Where:

• ( P ) = amount invested each month (NT$10,000)
• ( r ) = annualized return (10% = 0.10)
• ( n ) = times compounded per year (12, because you invest monthly)
• ( t ) = number of years invested

For a 30-year investment (( t = 30 )):

The results (rounded):

Source: estimated from the Taiwan stock market's annualized return over the past 20 years, assuming the investor keeps investing steadily. (NT$1 million is roughly US$30,000.)

Is 0050 a good fit for the FIRE crowd?

1. Steady over the long run, without single-stock risk

• An individual stock can collapse, but 0050 holds 50 market leaders, so a total wipeout is far less likely.
• In the 2008 financial crisis, for example, Taiwan's market fell more than 50% and 0050 dropped hard too — but it recovered and hit new highs within five years.

2. Reinvesting dividends speeds up growth

• 0050 pays a dividend of about 2% a year; reinvesting it raises long-term returns.
• 0050 + compounding = the most powerful wealth-building tool!

3. Regular investing suits lazy investors

• No stock picking, no watching the market — buy and comfortably hold for 20–30 years.

The risks of investing in 0050, and how to handle them

1. Big short-term swings call for a strong stomach

• In 2022, for example, 0050 fell below NT$100, but by 2024 it was back above NT$150.
• Closing price on February 21, 2025: NT$197.
• What to do: as a long-term investor, ignore short-term moves; keep buying to lower your average cost.

2. Taiwan's market leans on tech stocks, so volatility is higher

• More than 50% of 0050 is in tech, such as TSMC and MediaTek.
• What to do: pair it with US ETFs (such as VOO or VT) to spread the risk.

Your next step

• Have you started investing in 0050? If not, it's not too late to start now.
• Want to reach financial freedom faster? Try raising your investment amount every year and let compounding do its best work.
• Do you think 0050 is the best retirement tool in Taiwan? Let me know what you think.

Further reading: What Is FIRE? How to Reach Financial Independence and Retire Early