Best Investments to Grow Your Money:

The Classic Way – Earn it Slowly
Investors who have been around for a while will remember the classic Smith Barney commercial from the 1980s, where British actor John Houseman informs viewers in his unmistakable accent that they “make money the old fashioned way – they earn it.” When it comes to the most traditional way of doubling your money, that commercial’s not too far from reality. Perhaps the most 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. While that portfolio won’t double in a year, it almost surely will eventually, thanks to the old rule of 72 – The rule of 72 is a famous shortcut for calculating how long it will take for an investment to double if its growth compounds on itself. According to the rule of 72, you divide your expected annual rate of return into 72, and that tells you how many years it will take to double your money.

The Contrarian Way
Even straight-laced, even-keeled investors know that there comes a time when you must buy – not because everyone is getting in on a good thing, but because everyone is getting out. Just like great athletes go through slumps when many fans turn their backs, the stock prices of otherwise great companies occasionally go through slumps because fickle investors head for the hills.

The Safe Way
Just like how the fast lane and the slow lane on the freeway eventually lead to the same place, there are both quick and slow ways to double your money. So for those investors who are afraid of wrapping their portfolio around a telephone pole, bonds may provide a significantly less precarious journey to the same destination. But investors taking less risk by using bonds don’t have to give up their dreams of one day proudly bragging about doubling their money.

The Bottom Line
There’s an old saying that if “something is too good to be true, then it probably is.” That’s sage advice when it comes to doubling your money, considering that there are probably far more investment scams out there than sure things. While there certainly are other ways to approach doubling your money than the ones mentioned so far, always be suspicious when 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.