Just be careful and be sure to do your homework before trying it. Each of the above options has varying benefits, drawbacks, and risks. You don’t have to choose one — you can choose all or some of them in order to plot your path forward and double your money. Another guaranteed way to double your money is by buying Series EE Savings Bonds from the U.S.
Time Horizon and Risk Tolerance
Even growth stocks can be undervalued at times, offering the best of both worlds. It’s a company that reported its third-quarter revenue was up 35% year over year and earnings per share up 19%. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
Top 5 Ways to Double Your Money
The point is that there are times when good investments become oversold, which presents a buying opportunity for investors who have done their homework. One strategy is to limit your speculative buys to 3% or 5% of your portfolio. You could also invest in a diversified, high-growth fund instead of individual stocks. Broadly speaking, alternative investments are any investments that are not stocks, bonds or cash. Thus, alternative investments can include a variety of investments, such as private equity, real estate, commodities, collectibles and cryptocurrency.
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That said, the return in any single year is likely to be much different – higher or lower – than the average. For example, the index had a negative return during the 2000s. The S&P 500 made up for it in the 2010s, returning 252 percent – more than tripling. Many employers give employees money just for contributing to their own retirement account. For example, employers may match a small percentage of what you add to the account – so you put in 5 percent of your salary, and your employer adds another 5 percent. That’s the easiest, lowest-risk way to make money, and you still get all the great benefits of a 401(k) plan.
We may receive commissions from some links to products on this page. For the uninitiated, zero-coupon bonds may sound intimidating. Instead of purchasing a bond that rewards you with a regular interest payment, you buy a bond at a discount to its eventual value at maturity. Starting your own business can also have tax advantages, but you may need to consult an accountant to ensure you’re taking advantage of everything you’re allowed to. It could be just a side hustle you do in your free time to supplement your income.
This is an easy thing to do, but it takes time — roughly 10 years, assuming the stock market’s behavior doesn’t change dramatically. SmartAsset Advisors, LLC (« SmartAsset »), a wholly https://www.online-accounting.net/how-to-start-a-virtual-bookkeeping-business-in-5/ owned subsidiary of Financial Insight Technology, is registered with the U.S. Divide 72 by the annual rate of return to figure how long it will take to double your money.
To achieve this level of returns over time, there are a number of options that come with limited risk. Meanwhile, those looking to shoot the lights out and double their money quickly have their share of high-risk, high-reward options to choose from, too. The offers that https://www.online-accounting.net/ appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
- As you can see from the numbers, high-growth stocks can be volatile.
- Follow our Motley Fool investing philosophy and you’ll buy 25 or more stocks, while aiming to hold them for at least five years.
- If you separate from your job before you are 100% vested, you forfeit a portion of those matching contributions.
- Growth stocks sometimes can be more volatile and risky, though, and they’re often trading at rather lofty levels.
With traditional savings accounts, for example, your opportunities for growing your cash are limited (the average APY is a mere 0.42% right now). It’s not sexy, and it won’t wow the neighbors, but getting an automatic 50 cents for every dollar you save is tough to beat. The prospect of rising interest calculate markup rates also reduces the appeal of real estate investment. A potentially faster (but less predictable) doubling strategy involves investing in a stock market downturn. You’d only implement this strategy if you’re confident that market corrections are temporary (as they’ve always been historically).
That’s a great way to double your money far faster than virtually any other means can get you there. The first step is to know how quickly you need to double your money. Is it two years, 10 years, or just by retirement a few decades down the road? Once you have that detail, you’ll need to follow what’s called the Rule of 72. The risk-return tradeoff refers to the fact that there is a strong positive correlation between risk and return. The higher the expected returns from an investment, the greater the risk; the lower the expected returns, the lower the risk.
You could also invest in the « next big thing » and double your money quickly. For example, you could have bought shares of Block (SQ -1.42%) in 2020 for about $50 apiece. Today, Block shares trade above $ after eclipsing $250 in 2021. The stock market can be unpredictable, so your doubling time could be five years or 15. Get the process started with these four proven ways to double your money, ordered from least to most risky.
If you want to double your money, you don’t have to get lucky in Vegas or win the lottery. There are better, more consistent and proven ways to boost your bank account by 100%. Buying in a downturn gets you into a stock for a lower-than-normal share price.
The matching formula specifies how much your employer contributes to your retirement account based on your contributions. Others match a percentage, say 50% of your contributions, up to a cap. Some can be highly speculative, which might allow you to double your money more quickly with alternative investments. But their speculative nature also means you can lose money on them just as fast as you made it. Thus, without research, analysis, and perhaps a bit of luck, it probably won’t be easy to double your money with alternative investments.