How To Double Your Money In A Week?

Doubling your money is a badge of honor at parties and Thanksgiving dinner. Overzealous consultants or scammers and fraudsters may likewise make false money-doubling claims. Perhaps the desire to double money originates from our risk-taking investing psyche.

Time and risk must be considered in such attempts. This refers to your (investing) time horizon and risk tolerance, as well as the investment’s qualities, such as the time it might take to double, which is a function of the investment’s riskiness.

Money-doubling tips

Doubling your money is a reasonable aim for most investors and isn’t as scary as it may seem to a new investor. Some caveats:

Be honest with yourself (and your investing advisor, if you have one) about your risk tolerance. Discovering you can’t stomach volatility when the market plunges 20% is the worst time to make this discovery.

Don’t let greed and fear affect your investment selections.

There are no “guaranteed” get-rich-quick methods with minimal risk. Because there are certainly more investing scams than sure bets, be cautious of too-good-to-be-true promises. Make sure no one is manipulating you to double their money, whether it’s your broker, brother-in-law, or a late-night infomercial.

Five ways to double your money. Your choice relies on risk tolerance and investment timing. Mix these tactics to double your money.

1. Earning slowly

Older investors will remember the 1980s Smith Barney commercial with British actor John Houseman saying, “They make money the old-fashioned way—they earn it.”

This commercial is accurate on the most traditional approach to double your money. A robust, balanced portfolio of blue-chip stocks and investment-grade bonds is a time-tested approach to double your money.

The S&P 500 Index has returned 9.8% yearly (including dividends) from 1928 to 20201, whereas investment-grade corporate bonds have returned 7% annually1 over this 93-year period. A 60/40 portfolio (60% stocks, 40% bonds) would have returned 8.7% yearly during this time. Rule of 72 portfolios should double in 8.3 years and triple in 16.5 years.

Such stellar results are usually accompanied with volatility. As the coronavirus pandemic emerged in the first quarter of 2020, the S&P 500 fell 35% in six weeks.

High returns relative to the norm may diminish future returns. The S&P 500 recovered from its 2020 slump and reached new record highs before year’s end. The S&P 500 returned 100% from 2019 to 2021, which may suggest future returns may be lower.

Blood in the Streets

Even the most cautious investor knows that you must buy when everyone else is selling.

Just as great sportsmen go through slumps when fans turn away, great companies’ stock prices often slump as fickle investors bail. Smart investors “purchase when there’s blood in the streets, even if it’s their own,” observed Baron Rothschild.

Nobody recommends buying bad stocks. When solid investments are oversold, savvy investors can buy them at a discount.

Price-to-earnings ratio and book value are used to value stocks. Both measurements have historical norms for wide markets and industries. When corporations fall below historical averages for superficial or structural causes, skilled investors can double their money.

Contrarians buck the trend. It takes risk tolerance, due diligence, and study. Contrarian investing is not suggested for conservative or inexperienced investors.

3. Safety

There are quick and slow ways to double your money, just like on the freeway. If you’d rather play it safe, bonds can get you there.

Example: zero-coupon bonds Zero-coupon bonds may intimidate the uninitiated. They’re straightforward. You acquire a bond at a discount to its maturity value instead of one that pays interest.

Reinvestment risk is absent. Reinvesting regular coupon bond interest payments poses problems and hazards. Zero-coupon bonds have one payoff: maturity. Zero-coupon bonds are sensitive to fluctuations in interest rates and can lose value when rates rise. An investor who doesn’t plan to hold a zero-coupon bond to maturity should consider this risk.

Series EE Savings Bonds from the U.S. Treasury offer another choice for conservative investors who are patient. Series EE Savings Bonds are low-risk savings instruments accessible on TreasuryDirect. They pay interest for 30 years or until the investor cashes them in.

Bonds issued between November 2021 and April 2022 have a modest 0.10 percent interest rate, but they’re guaranteed to double in 20 years. Minimum purchase is $25, maximum is $10,000 per year. State and municipal taxes don’t apply to savings bonds, but interest is taxable.

4. Spontaneous

Some investors do well with slow and steady, but others fall asleep. For someone with a high risk tolerance and some investment funds they can afford to lose, aggressive techniques like options, margin trading, penny stocks, and cryptocurrencies may be the fastest way to super-size the nest egg. All swiftly shrink a nest egg.

Puts and calls are used to speculate on any company’s stock. Options can boost a portfolio’s performance for many investors, especially industry experts.

Each stock option represents 100 shares. An investor may just need a minor price increase to strike a home run. Be careful and do your homework first.

Those who don’t want to understand options might buy on margin or sell a stock short to leverage their faith or misgivings in a stock. Both strategies allow investors to borrow money from a brokerage house to purchase or sell more shares than they have, increasing their potential earnings. This procedure is difficult. A margin call might trap you, and short-selling can cause limitless losses.

Extreme bargain shopping can make money. You can gamble on former blue-chip corporations that are now under a dollar. Or, invest in a promising firm. Penny stocks double in a day. These equities’ low prices reflect investor sentiment.

Best way to double money?

Your risk tolerance, investment horizon, and preferences matter. Most consumers want a balanced portfolio of equities and bonds. Higher-risk investors may favor small-cap stocks or cryptocurrencies, while others may prefer real estate.

Can an Investor Double Money Five Ways?

Indeed. Take advantage of employer-matched retirement contributions. Consider becoming a contrarian when the market plunges or soars. If you have a risk appetite and want some sizzle, invest in aggressive tactics and assets (after doing your research and due diligence, of course). Keep the down payment in a savings account or other risk-free investment.