10 Legal Ways to Make Money Fast
Perhaps it comes from deep in our investor psychology — the risk-taking part of us that loves the quick buck.
That said, doubling your money is a realistic goal that an investor should always aim for.
Broadly speaking, there are five ways how to double your money fast uk get there.
Which you choose depends largely on your appetite for risk and your timeline for investing.
Investors who have been around for a while will remember the classic Smith Barney commercial from the 1980s in which British actor John Houseman informs viewers in his unmistakable accent that "we make money the old fashioned way — we earn it.
The time-tested way to double your money over a reasonable amount of time is to invest in a solid, non-speculative portfolio that's diversified between blue-chip stocks and investment-grade bonds.
The rule of 72 is a famous shortcut for calculating how long it will take for an investment to double if its growth compounds.
Just divide your expected annual rate of return into 72.
The result is the number of years it will take to double your money.
Considering that large, blue-chip stocks have returned roughly 10% annually over the last 100 years and investment grade bonds have returned roughly 6% over the same period, a portfolio divided evenly between the two should return about 8% a year.
Dividing that expected return into 72 indicates that this portfolio should double every nine years.
That's not too shabby when you consider that it will quadruple after 18 years.
When dealing with lowthe click at this page of 72 is a fairly accurate predictor.
This chart compares the numbers given by the rule of 72 and the actual number of years it would take these investments to double in value.
Rate of Return Rule of 72 Actual of Years Difference of Years 2% 36.
Even the most unadventurous investor knows that there comes a time when you must buy, not because everyone is getting how to double your money fast uk on a good thing but because everyone is getting out.
Just as great athletes go through slumps when many fans turn their backs, the stock prices of otherwise great companies occasionally go through slumps, which accelerate as fickle investors bail out.
As Baron Rothschild once how to double your money fast uk, smart investors "buy when there is blood in the streets, even if the blood is their own.
The point is that there are times when good investments becomewhich presents a buying opportunity for investors who have done their homework.
The classic barometers used to gauge whether a stock may how to double your money fast uk oversold are the company's and.
Both measures have well-established historical norms for both the broad markets and for specific industries.
When companies slip well below these historical averages for superficial or systemic reasons, smart investors smell an opportunity to double their money.
Just as the fast lane how to double your money fast uk the slow lane on the highway eventually will get you to the same place, there are quick and slow ways to double your money.
If you prefer to play it safe, bonds can be a less hair-raising journey to the same destination.
For the uninitiated, zero-coupon bonds may sound intimidating.
In reality, they're simple to understand.
Instead of purchasing a bond that rewards you with a regular interest payment, you buy a bond at a discount to its eventual value at.
As it moves closer and closer to maturity, its value slowly climbs until the bondholder is eventually repaid the face amount.
One hidden benefit is the absence of reinvestment risk.
With standard coupon bonds, there are the challenges and risks of reinvesting the interest payments as they're received.
With zero coupon bonds, there's only one payoff, and it comes when the bond matures.
While slow and steady might work for some investors, others find themselves falling asleep at the wheel.
For these folks, the fastest ways to how to double your money fast uk the may be the use ofor.
All can super-shrink a nest egg just as quickly.
Stock options, such as simple andcan be used to speculate on any company's stock.
For many investors, especially those who have their finger on the pulse of a specific industry, options can how to double your money fast uk a portfolio's performance.
Each stock option potentially represents 100 click at this page of stock.
That means a company's price might need to increase only a small percentage for an investor to hit one out of the park.
For those who don't want to learn the ins and outs of options but do want to leverage their faith or doubts about a particular stock, there's the option of buying on margin or selling a stock.
Both of these methods allow investors to essentially borrow money from a brokerage house to buy or sell more shares than they actually have, which in turn raises their potential profits substantially.
This method is not for the faint-hearted.
A can back you into a corner, and short-selling can generate infinite losses.
Lastly, extreme bargain hunting can turn pennies into dollars.
You can roll the dice on one the numerous former 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.
Penny stocks can double your money in a single trading day.
Just keep in mind that the low prices of these stocks reflect the sentiment of most investors.
While it's not nearly as fun as watching your favorite stock on the evening news, the undisputed heavyweight champ is an employer's matching contribution in a or another employer-sponsored retirement plan.
It's not sexy and it won't wow the neighbors at your next block party, but getting an automatic 50 cents for every dollar you save is tough to beat.
Making it even better is the fact that the money going into your plan comes right off the top of what your employer how to double your money fast uk to the IRS.
For most Americans, that means that each dollar invested costs them only 65 to 75 cents.
If you don't have access to a 401 k plan, you still can invest in a traditional IRA or a Roth IRA.
You won't get a company match, but the tax benefit alone is substantial.
A traditional IRA has the same immediate tax benefit as a 401 k.
A Roth IRA is taxed in the year the money is invested, but when it's withdrawn at retirement no taxes are due on the principal or the profits.
Either is a good deal for the tax-payer.
But if you're young, think about that Roth IRA.
Zero taxes on your capital gains?
That's an easy way to get a higher effective return.
If your current income is low, the government will even effectively match some portion of your retirement savings.
The reduces your tax bill by 10% to 50% of your contribution.
There's an old saying that if "something seems too good to be true, then it probably is.
There are probably more investment scams out there than there are sure things.
Be suspicious whenever you're promised results.
Whether it's your broker, your brother-in-law or a late-night infomercial, take the time to make sure that someone is not using you to double their money.
The offers that appear in this table are from partnerships from which Investopedia receives compensation.
The Rule of 72 is defined as a shortcut or rule of thumb used to estimate the number of years required to double read more money at a given annual rate of return, and vice versa.
Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals.
Compound interest is the numerical value that is calculated on the initial principal and the accumulated interest of previous periods of a deposit or loan.
Compound interest is common on loans but is less often used with deposit accounts.
A Roth IRA is an individual retirement plan that bears many similarities to the traditional IRA, but contributions are not tax deductible and qualified distributions are tax free.
Personal finance is all about managing your income and your expenses, and saving and investing.
Learn which educational resources can guide your planning and the personal characteristics that will help you make the best money-management decisions.
Interest is the charge for the see more of borrowing money, typically expressed as an annual percentage rate.
10 Legal Ways to Make Money Fast
double your money every 60 minutes I need to preface what I’m going to talk about with two things. First, when I was young, I received a number of letters from different companies saying I was almost a winner in their sweepstakes, or even better, that I had already won something.
Now all is clear, I thank for the information.
It agree, very amusing opinion
It is very a pity to me, I can help nothing to you. But it is assured, that you will find the correct decision.
You are not right. I am assured. Let's discuss. Write to me in PM.
Improbably. It seems impossible.
The same, infinitely
I am final, I am sorry, but this variant does not approach me.
I suggest you to try to look in google.com, and you will find there all answers.
It seems to me, what is it already was discussed, use search in a forum.
I congratulate, what necessary words..., a brilliant idea
It agree, a remarkable phrase
I am ready to help you, set questions. Together we can find the decision.
I think, that you commit an error. I suggest it to discuss. Write to me in PM, we will communicate.
You are mistaken. I can prove it. Write to me in PM.
In my opinion you are mistaken. Let's discuss. Write to me in PM, we will communicate.
I agree with told all above. We can communicate on this theme.
In my opinion it is obvious. I would not wish to develop this theme.
I think, that you commit an error. I can prove it. Write to me in PM, we will talk.
Unfortunately, I can help nothing. I think, you will find the correct decision.
Will manage somehow.
Completely I share your opinion. In it something is also idea good, I support.
It is remarkable, it is rather valuable answer
It is reserve
Remember it once and for all!
It is a pity, that now I can not express - I hurry up on job. I will return - I will necessarily express the opinion.