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How do you double your money?

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Quick Answer

Doubling your investment is possible in ways that range from taking advantage to employer match contributions into a retirement fund to using stock options and margin transactions to grow your account rapidly, notes Investopedia. Different strategies incur different levels of risk.

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Full Answer

Companies that offer to match their employees' contributions to a 401(k) or similar retirement plan make doubling money simple. If your employer contributes 50 cents for every $1 that you contribute, the you're really only out about 75 cents, because that $1 comes out before taxes. However, $1.50 goes into your retirement account, meaning that you get twice your real cost for each contribution, instantly doubling your money, reports Investopedia.

Speculators use techniques such as options to invest in stock quickly. Use puts and calls to make short-term bets on as many as 100 shares of stock with each option, and take advantage quickly when prices go your way so that your fast gain doesn't evaporate. When prices go wrong, you can lose a lot of money in a hurry, according to Investopedia.

Zero-coupon bonds offer a way to double money, although it takes patience. If you a $1,000 zero-coupon bond with a 5 percent annual interest rate for $500, you double your money upon maturity, as stated by Investopedia.

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