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5 Ways to Double Your Money Before You Retire

By: Abhisek Nal

 

Mature smiling couple sitting and managing expenses at home. Happy senior man and mid woman paying bills and managing budget. Middle aged couple checking accountancy and bills while looking receipt.

Everyone hopes to have a pleasant and peaceful retirement. But planning for your retirement can be the most confusing part. Unfortunately, it’s not a challenge many people can handle.

Whether you’ve just secured a job or you’re about to retire, you can still double your money. Finance experts will tell you that doubling your savings requires patience, discipline and dedication. If you’re an investor, the best way to double your money is by generating returns.

Let’s delve into some of the strategies to double your money fast.

Bonds

To diversify your investment portfolio, you need to consider investing in various bonds and stocks. Portfolio diversification comes in handy during a recession or if things go wrong with the organization you have invested in.

Bonds may not generate very high returns, but they tend to be way safer than stocks. The rates can be between 5% and 6% annually, and the returns are consistent, making everything easier for budgeting. Remember that safety is essential. While a 12% return might sound appealing, you could lose a lot of money if the company you’ve invested in goes bankrupt.

Employer matching

If your employer matches your 401(k) contribution, then you have the best way to double what you earn before you retire. Employer matching means that your employer saves a certain amount on your behalf for your retirement savings annually.

If your employer is dedicated to prioritizing the 401(k), you could primarily increase your retirement fund. You could get a 50% return on investment since most employers match 50 cents per dollar.

You don’t have to pressure your employer to offer the 401(k) employer matching. You can take advantage of the same tax benefits by contributing to your individual retirement account (IRA). You can either get the tax incentive up-front (traditional IRA) or when you retire (Roth IRA), which depends on the type of retirement account you have.

Stock options

This is a quick way to generate high returns on investment. However, it can be precarious if you’re not good at speculation. A stock option is an agreement that allows you to sell or buy a specific number of shares to a particular price and usually at one specific point in the future.

You only have to pay the premium price, and you can sell or buy at a lower or higher price than the share’s value. There are different options to double your investment, but the easiest is speculating whether a company’s stock will fall or rise.

Forex trading

While risky, you can possibly double your money in a forex investment over other forms of investment. Thanks to  the 1:500 leverage, it doesn’t need a considerable amount of capital. While you can earn a significant return on investment, you can still lose a lot of your hard-earned money.

The best part is that most forex brokers have a demo account for beginner traders to learn about forex trading before investing their money.

The rule of 72

The rule of 72 is a classical investment strategy that can help investors determine how long it will take for their investments to double. You only need to divide 72 by your annual interest rate, and you’ll get the years it will take to double your investment.

For instance, if your investment has a 20% interest rate, you have only 3.6 years to double your investment. The higher the growth rates, the less time it will take to double your money.

Conclusion

Doubling your money before retirement is not about greed. The best way to double your money is by allowing your money to work for you. With the simple techniques highlighted above, you will have enough money for your retirement. It’s never too late or early to start.

Published: May 4, 2021
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