Doubling your money is an exciting dream, but achieving that goal can be elusive without the right strategies. True growth takes more than just luck; it requires a thoughtful approach and a steady hand. The journey to doubling your capital isn’t simply about chasing high returns but about making informed, deliberate choices that align with your goals and risk tolerance. By focusing on clear objectives and understanding the factors that drive your investments, you can build a path to financial growth that’s sustainable and rewarding.

Formula to Calculate Doubling of Your Money

A well-known and simple formula for calculating the doubling of your money is
the Rule of 72. It provides an estimate of the number of years required to double
your investment based upon a fixed annual rate of return. You simply divide 72
by the annual rate of return.
For example, if we were to calculate a 10% annual return, it would take 7.2 years
to double our investment. The formula is as follows: 72/10 = approximately 7.2
years. The reason we say estimate is that the formula assumes a fixed annual
return and actual returns typically fluctuate from year to year due to market
conditions.

Invest in What You Understand

When considering the best ways to double your money is choose the vehicle that you understand the most. Since stock investing is where our expertise is, that is our first consideration. We invest in the stock market and have developed over the years an algorithm that helps us to time our investments accurately.

Doubling Your Money

If considering doubling of your capital, one option to consider in the leveraged
ETF, ProShares UltraPro TQQQ. The TQQQ is a 3X leveraged ETF based on the
QQQ (A Nasdaq 100 Index ETF). Because it is leveraged, it uses derivatives
contracts to amplify its returns based on how the index performs. As such, it does
not actually hold the shares of any companies.

This ETF seeks a return that is 3X the return of its underlying benchmark for a
single day as measured from its NAV calculation from one day to the next. Due to
compounding of daily returns, holding periods of greater than one day can results
that are significantly different than the target return.

If you had invested $10,000 in the TQQQ on 12/30/2022, you would have more
than doubled your money by 07/26/2023 as your original investment would have
grown to $25,246 which equates to a 152.46% YTD return with an annualized gain
of 268.84%. On average, the return for this ETF is over 39% assuming re-
investing of dividends.

Because of the leverage involved, when the Nasdaq 100 is surging upwards, your
returns are spectacular with this fund. However, if the market heads south, the
3X leverage will destroy your returns just the same. Again, it’s about accepting
the risk and the timing required to be successful.

Bear Market Investment

So what do you do if the market does in fact, head lower? The inverse of the
TQQQ is the SQQQ. It performs well in down markets as it is the inverse of the
TQQQ. The SQQQ is negative YTD -66.45%.
However, in 2022, when the market was down, that same $10,0000 invested
would have grown to over $18,872 in the SQQQ. With either the TQQQ or the
SQQQ, these are leveraged investments which means that they must be
monitored regularly. They are not buy-and-hold investments.

Savings Accounts

This year the average savings account rate across all financial institutions is 0.46%. That means that if you invested that same $10,000 at the end of the year you would have a whopping $10,046. Savings accounts are fine to invest for a short period of time, however let your money grow and compound with other more lucrative investments.

Summary

Doubling your money isn’t about quick wins or risky bets; it’s about making informed decisions and choosing strategies that align with your goals and risk tolerance. By investing in what you understand and maintaining a clear vision, you can steadily build your wealth and create a more resilient financial future. Remember, growth takes time, patience, and the confidence to stay the course.