Doubling Your Investment
People invest their hard earned cash in order to make it grow for them. For most of them, doubling their investment over time would be the ideal objective. But it is easier said than done. Doubling your investments may not really be feasible in today’s world. And if it does, it may take some time. But for those who are really into trying to double their investments, here are some of the ways to do it.
Investing The Classic Way
The classic way of doubling your investment is by trying to earn it slowly. This is considered as a sure path towards doubling your investment but would take a certain period of time. This type of investment would rely on putting money on a portfolio containing non-speculative investment instruments that is a good mix of blue chip stock and low risk bonds. While such an investment portfolio won’t exactly double in a year or two, investors can at least expect it to double in value eventually.
Investing The Safe Way
A better way than slowly earning from your investments to double it is by also doing it the safe way. For those people who want to invest in something that offers the less risk but also offer the chance of doubling the investment, putting money in zero-coupon bonds may be the best option available. It is a type of bond that people can buy at a discount from its eventual maturity amount. Instead of people buying a bond that pays 5 percent a year in interest, zero-coupon bonds that cost a certain value at maturity but can be bought now at a substantial discount, usually 50 percent of its eventual maturity value. The zero-coupon bond does not pay in interest rates per year but rather on its maturity value. Investors only have to wait until their zero-coupon bonds mature in order to realize their investments to double. Although it may take longer than necessary, but it does offer better assurance that the said investment will truly double.
The Best Way
Probably the best way that you may be able to double your investment can’t be found in the usual stocks or bonds out there. The best way out there is those that offer matching contributions, such as a company retirement fund. Those 401(k) plans are actually quite attractive as a way to double your investment simply because there is an outside party also contributing for you. This means your company that offers a matching contribution to your own money placed into the fund. Aside from that, it also provides a certain percentage interest rate that makes it grow as years go by. By the time you retire, not only would you have doubled your money, you might even earn more from it under certain conditions.
Investing – GuideTo.Com
Tags: Doubling, Investment
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