Just Hit $100,000 in Your Portfolio? Here's What I'd Do Next

Hitting the $100,000 mark in your investment portfolio should feel monumental. And it is. It's likely the culmination of years of investing regularly and compounding growth. $100,000 probably isn't the finish line, but it should make you feel like you've reached some level of success.

It can also feel a little stressful. After all, you're dealing with real wealth now, and any wrong moves could cost you thousands of dollars. Maybe you feel like you need to change your asset allocation. Maybe you think it's time to get into individual stock picking or more sophisticated investments.

In reality, some things do change. But they have less to do with what you should buy and more to do with keeping the momentum going.

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How $100,000 changes the math

Let's imagine that you have $10,000 invested in the S&P 500 (SNPINDEX: ^GSPC) and earn 8% over the course of a full year. Your investment growth in that scenario is $800.

But if you earn 8% on a $100,000 balance, you've made $8,000. Compound that 8% annual rate of return over 10 years, the balance grows to around $216,000. After 20 years, it would become roughly $466,000.

At this point, investment contributions aren't doing most of the work to grow your balance. It's compounding growth or the returns you're earning on your returns. It's maybe the most powerful force in investing, and it's once you hit the six-figure mark in your portfolio that it really makes a difference.

How to invest for the next $100,000

This is where you don't want to overthink things.

There's no need to test out riskier or exotic investments. There's no need to get more aggressive or really alter your investment plan in any major way. You always want to invest in a way that's consistent with your time horizon and risk tolerance. But assuming those considerations haven't really changed, you might not need to change anything.

The plan that got you to $100,000 is the plan that can get you to $200,000.

You can still use something like the Vanguard Total Stock Market ETF (NYSEMKT: VTI) as your portfolio's core and build around it with bonds, dividend stocks, gold, and international investments.

But the biggest factor in your continued success will be behaviors. That means continuing to do the following:

• Keep contributing regularly.
• Reinvest dividends and other distributions.
• Maintain a diversified portfolio.
• Avoid trying to time the market.

Reaching $100,000 in your portfolio shouldn't make you more aggressive. It should make you more patient and disciplined.

David Dierking has positions in Vanguard Morningstar Total Stock Market ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.