Doubling your investment is possible, and you don’t have to play blackjack or take a trip to Las Vegas to do it. In fact, many safe and reliable techniques allow you to double your cash without any risk.
Here are some of them:
1. Invest in a 401(k) plan
Investing in a 401(k) plan is one of the easiest ways to double your money and start saving for your ultimate retirement plan. A 401(k) is a retirement saving and investing plan that employers exclusively offer to their employees. This plan gives employees a tax break on the money they contribute, and these contributions are automatically deducted from employee paychecks and invested into their chosen funds. Sounds easy, right?
Bear in mind that this plan is solely intended for retirement, and there can be heavy fines for withdrawing before your retirement age. The downside? Some employers may require you to remain employed for a pre-agreed time, often two to four years. So, if you’re looking for a retirement-only plan that can double your money, 401(k) is the way to go!
2. Invest in real estate
Contrary to popular belief, investing in real estate offers multiple benefits despite the ever-changing economic trends. For starters, you can easily invest with low-interest leverage through a mortgage or other loans. This means that you won’t have to invest equivalent to the asset value, as you can make a smaller down payment. Not only that, but you can also put up your property for rent, providing you with an alternative revenue stream, and any appreciation of your property can lead to plenty of opportunities to double your initial investment.
Like any other investment involved, there is risk involved here as well. As with any debt, you have to make sure that you cover your mortgage payment regardless of whether the property is rented or not. Still, with good research of the real estate market, decent agents, and enough capital, you can easily double your money in a few years.
3. Invest in an S&P index fund
The S&P index keeps track of around 500 of the biggest U.S. public companies. An index fund based on the Standard & Poor’s 500 index is one of the most convenient ways to double your money in the long term, averaging about 10 percent or more over more extended periods. This means that if you invest in an S&P fund, there’s a probability that you can double the amount you invested over a decade.
However, it does not mean that you will double your money by 10 percent every year. There have been times when you couldn’t have been able to double your investment, especially if some stocks are going through losing streaks. But, with a long-term approach and enough research, it’s proven to be rewarding.
4. Savings bonds
Series EE Savings Bonds from the U.S. Treasury are another great way to up your investment. While the bonds initially offer a return of 0.10 percent, you can double your money by holding them for 20 years, and if you hold them for a period longer than that, they will earn you additional interest too. One more benefit of owning savings bonds is that they are exempted from state and local taxes and can be a valuable diversified asset for limited purposes.
The Bottom Line
Everyone wants to make money but not all succeed. Only research, insight into the financial world, and learning to balance risky investments can help you make educated decisions.
If you’re looking to double your investment, you’ll have to take a risk. Bigger risks yield higher rewards but make sure to educate yourself to better your chances of succeeding.