How to double your money
From real estate to 401k matching – discover how you can double your money and minimize risk using smart investment strategies.
Summary
Doubling your money requires patience and careful investment strategies.
Popular investment options for doubling your money include real estate, 401k management, and alternative investments.
On average, it takes about 10 years to double your money.
A financial advisor can help you develop the right investment strategies and ensure your money is working as hard as possible.
How can I double my money without risk?
There is really no way to double your money without risk.
Every investment, no matter how “safe,” has an element of risk to it, and you need always to remember this when you’re looking for a major financial boost.
However, with a smart investment strategy, you can mitigate this risk considerably.
What are some strategies for doubling my money?
It is possible to double your money while remaining within the bounds of your risk tolerance; however, you need to be patient.
If you’re wondering how to double your money, consider the following tips for investing:
Make the most of 401k matching
If your employer-sponsored retirement plan, such as a 401(k), allows your employer to match your own 401k contributions (up to a percentage of your salary), this is essentially free money and an effective way to increase your original investment.
2. Invest in value and growth stocks
Investing in growth and value stocks can be a great way to double your money because both have the potential to surpass market growth:
Large, well-established organizations often offer value stocks but seem to be trading at an undervalued price at the time of purchase.
Growth stocks, meanwhile, are often small- and mid-cap stocks, regarded by market analysts as having yet to achieve their full potential.
An S&P 500 index fund is a good option. While there may be extended phases of low return, the S&P 500 tends to deliver a return of around 10% over longer periods.
3. Increase the amount you contribute to your 401k
By doubling your monthly retirement plan contributions, if possible, you can effectively double your retirement pot.
What’s more, the higher the value of your capital investment, the greater the compound interest you’ll accumulate over the years. So, you could even more than double your money this way.
4. Invest in real estate
Investing in real estate could be one of the safest ways of investing to grow your money. Unlike other assets like vehicles, property tends to appreciate in value over time.
Just remember that playing the long game in this case also means doing plenty of research, selecting your property carefully, and not signing up for mortgage payments that you can’t afford.
Some potential ways to double your money in real estate include:
Drawing a rental income from your property
Flipping houses (renovating a fixer-upper and then reselling in short order)
Using rental income to pay off your property faster so that you can sell it at a profit sooner
5. Consider alternative investments
Just as an investment advisor can offer you tips for investing in stocks and bonds, they should also be able to provide guidance regarding your alternative investment options.
Some popular alternative investment avenues include:
Commodities
Private equity
Cryptocurrency
Commodities
However, these alternatives should be approached with extreme caution.
Alternative investment options tend to be highly speculative and even volatile. The best investment tip is never to invest more than you can afford to lose.
How long does it take to double your money?
Although your investment growth will likely be slow over the first few years, you should see a steep rise in growth after that, provided you’ve invested wisely.
According to the Rule of 72, it takes at least 10 years to double your money on a typical 7% return (72/7 = 10.28).
Doubling your money takes time and patience, and you should not rush it, as doing so can result in taking big risks.
Get expert investment advice
Familiarizing yourself with the various investment options available and how to make the most of them is your first step to doubling your money while mitigating risk.
But if you really want to find the best investment fit with the least possible risk, there is no substitute for expert financial advice.
Ready to get the best investment tips for doubling your money?
Let Unbiased match you with an SEC-regulated financial advisor now.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.