In that scenario, you’re doubling your money before it even gets invested, and it has the opportunity to grow even more. If your employer offers a smaller match — say, 25% or 50% — investing in your 401(k) is still a great way to double your money, even though it will take a https://www.kelleysbookkeeping.com/how-to-master-restaurant-bookkeeping-in-five-steps/ bit longer. If you need to double your money on a fairly quick timeline, old standards like savings accounts or buying real estate likely aren’t going to do it for you. Although slow and steady might work for some investors, others find themselves falling asleep at the wheel.

Time Horizon and Risk Tolerance

Thus, a classic 60/40 portfolio (60% equities, 40% bonds) would have returned about 8.7% annually during this time. Based on the Rule of 72, a 60/40 portfolio should double in about 8.3 years and quadruple in approximately 16.5 years. When it comes to the most traditional way of doubling your money, that commercial is not too far from the truth. The time-tested way to double your money over a reasonable amount of time is to invest in a solid, balanced portfolio that’s diversified between blue-chip stocks and investment-grade bonds. Doubling money is a prospect that few people would turn down, and it isn’t necessarily that difficult to achieve.

Invest in an S&P 500 index fund

If the property appreciates 20% to $600,000 in the next few years, the investor now has equity worth $200,000 in it, which represents a doubling of the original $100,000 investment. Investing in real estate offers multiple ways of doubling your money. The big advantage of investing in real estate is the easy access to low-interest leverage through mortgage or other real estate loans. That means your cash investment can be relatively small compared to the asset value. An example would be 50% matching on up to 6% of your salary. With this structure, your employer contributes 3% when you contribute 6%.

1. If you have a long-term time horizon, you should consider a lower-risk, more multi-faceted approach.
2. You’ll put down $40,000 (and we’ll exclude closing costs and similar expenses).
3. Become efficient by saving on tax, interest, non-performing investment fees and duplicate coverages and costs with insurance.
4. If your employer offers a match for your 401(k) contributions, this can be the easiest and most guaranteed way to double your money.
5. Bankrate.com is an independent, advertising-supported publisher and comparison service.

Increase Your Contributions

Series EE Savings Bonds are low-risk savings products that are only available in electronic form on the TreasuryDirect platform. They pay interest until they reach 30 years or the investor cashes them in, whichever comes first. Although the current rate of interest is a paltry 0.10% for bonds issued from November 2021 to April 2022, they come with a guarantee that bonds sold now will double in value if held for 20 years. The minimum purchase amount is $25, while the maximum purchase per calendar year is $10,000. Savings bonds are exempt from state or local taxes, but interest earnings are subject to federal income tax. You don’t have to live or die by one doubling strategy either.

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Maybe you’re nearing retirement, or you need to cover unexpected costs or medical expenses. It could also be that your salary hasn’t kept up with inflation or the higher consumer prices we’re cash vs accrual vs hybrid accounting dealing with in today’s economy. Whatever it is, there are ways to do it — and even double your money, in some cases. Each of the above options has varying benefits, drawbacks, and risks.

There’s actually a simple trick that allows you to quickly estimate when you can double your money. Below are five possible ways to double your money, ranging from the low risk to the highly speculative. Learn to discern the opportunities from the lemons and avoid all the heartache of investing in something that doesn’t give you the return you want.

A Roth IRA is taxed in the year when the money is invested, but when it’s withdrawn at retirement, no taxes are due on the principal or the profits so long as you meet the age and time invested requirements. Lastly, extreme bargain hunting can turn pennies into dollars. You can https://www.kelleysbookkeeping.com/ roll the dice on one of the numerous former blue-chip companies that have sunk to less than a dollar. Or, you can sink some money into a company that looks like the next big thing. Just keep in mind that the low prices of these stocks reflect the sentiment of most investors.