Double your money in 5 years?

Hey guys....

If you wanted to double your money in 5 years, how would you do it? And I don't mean, £5 to £10 (lol) but something like £100k to £200k? I'm not intending to use this thread right down to each letter, but just want some thoughts and ideas of how people would go about doing this? Would you look into a diverse portfolio of funds, or would you buy say 5 buy-to-let properties?

I think it'll be interesting to hear what you guys would do! Assume this guy is prepared to lose all of it, and just wants to do what ever it takes to double it's money (but without suggestions like buy 100,000 lottery tickets :p)
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Replies

  • As you know, Singh87, to double your money after 5 years means the capital needs to grow at 15% compound interest per year. For me, I would look at a diverse portfolio of funds (ie unit trusts) but that would mean growing at 20% in the first year to account for the sell/buy differential, and doesn't account for capital gains tax either. I don't think I would put it in property. Partly because of the expenses of housing (maintenance, etc) and the doom-mongers warning about the forthcoming crash. The stock markets are also very volatile at the moment, and who knows if they will go into meltdown too?

    How about buying a flat for more than £100000 (ie whatever they're going for) in a good location in London and he sells in a year to hopefully gain a profit of £100000 after CGT?

    Look forward to hearing from other people. Very good post!

    JJ
  • nrsqlnrsql Forumite
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    Roulette or similar is the obvious choice if you want double or nothing.

    At the moment the UK market and house prices are both looking dubious. Buy to let is unlikely to double your money without selling so that would be dependent on house prices.
    You could go for some high risk areas - emerging markets - equities/property but I think it will prove difficult to find opportunities than a few years ago.

    You could use savings products and hope that inflation/interest rates increase to give that sort of return - but then the money wouldn't be worth double in real terms.

    Maybe set up a business or two and develop then sell?
  • trademarktrademark Forumite
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    i have 100k in savings , im fully invested in isa's (not for 2007-2008), got lots of premium bonds , got some on the stock market , and never even thought it possible to double the 100k in just 5 years,

    im considering the super isa from the abbey this year , 8.1 % for the wife and i , followed by a 23% min return on a further 6k you have to invest in one of their ftse tracker bonds

    might go some of the way but id be interested in other ideas also
  • jem16jem16 Forumite
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    trademark wrote: »
    i have 100k in savings , im fully invested in isa's (not for 2007-2008), got lots of premium bonds , got some on the stock market , and never even thought it possible to double the 100k in just 5 years,

    im considering the super isa from the abbey this year , 8.1 % for the wife and i , followed by a 23% min return on a further 6k you have to invest in one of their ftse tracker bonds

    might go some of the way but id be interested in other ideas also

    The 23% is over 5.5 years so about 4% p.a.

    That's not going to get you very far. An ordinary savings account would give you more even after tax.
  • Loan sharking around sink estates
    Run events for pubs and clubs, you get to keep door takings and the owner gets the bar proceeds
  • dunstonhdunstonh Forumite
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    and never even thought it possible to double the 100k in just 5 years,

    Its been possible in the last 5 years (with not a lot of effort to be fair). However, it is unlikely in the next 5 years. I will let you borrow my crystal ball though if you like ;)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • cheerfulcatcheerfulcat Forumite
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    trademark wrote: »
    i have 100k in savings , im fully invested in isa's (not for 2007-2008), got lots of premium bonds , got some on the stock market , and never even thought it possible to double the 100k in just 5 years,

    im considering the super isa from the abbey this year , 8.1 % for the wife and i , followed by a 23% min return on a further 6k you have to invest in one of their ftse tracker bonds

    might go some of the way but id be interested in other ideas also

    A 100% return over 5 years is not at all unlikely in stock market investment - you just have to accept the risk...what is certain is that with cash and Premium Bonds you will be lucky to stay just ahead of inflation.

    The Abbey product is junk.
  • CageyCagey Forumite
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    My wife has a few Abbey cash ISA`s & PEP`s & they are very poor & lucky if they are keeping up with inflation. How easy is it to transfer to another provider ?.
  • dunstonhdunstonh Forumite
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    PEPs dont lose or make money. It is the invesments you place inside of the PEP that matters. Transferring to alternatives is simple. Its just a case of deciding where and what investments you want.

    Cash ISAs are very similar but of course you have less choice.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Penelope_PenguinPenelope_Penguin Forumite
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    How about reducing your outgoings? If this is completely missing your point, I apologise ;)

    DH and I have a 5-7 year plan which requires a substantial amount of money. We still have a great life, but no unnecessary spending. All our spare money is put into saving and investments.
    :rudolf: Sheep, pigs, hens and bees on our Teesdale smallholding :rudolf:
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