Investment strategy: starting capital=$25,000, N=7, PG stock..Possible to have $50,000 after 5 years?

Question

Ultimate goal to double total $ at end of 5 years.
**Note:
Starting Y2, acquire an additional $5,000 to diversify portfolio.
Best strategy...and specifics on what to do with "extra" $5,000. Mutual funds? Tbills?options? etc...as original $25,000 will be invested in PG stock.

Answer 1

YES
Possible to have $50,000 after 5 years.
*****
Invest in someone's business. I am sure you will double your money after 3-4 years.

Answer 2

Well, if you start with an investment of $25k in PG stock, presuming you have a margin account, you would have the ability to buy an amount of stock some percentage greater than the $25k, depending upon the company. In most other cases, your goal of 100% return in 5 years is very much admirable, but maybe unrealistic. you would need a return of, all other things aside, 14.4% to double your money in 5 years. This is the rule of 72. Dived the return % and you get the years it take to double that, or divid the number of years you want your investment to double, and you'll get the required return to achieve that. Mutual funds are always a great idea, over the long term arguably the best idea in a lot of situations. T-bills certainly serve a purpose. Options are another beast altogether. There are a number of options strategies that can be used to make money in any kind of market. There are even some that are intended to hedge against losses in a bear market that can be profitable from day to day. But that's a bit more complex than simply saying "do this". But options can be kinda fun, so I get it.
From your question you say this. $25k initially the first year and over the next 4 years $5k each year. That says $45k in principle. To go from $45k to $50k in 5 years is not that difficult really. Even with a 1.9% current yield based on the dividend paid. This is a figure calculated based on an entire year. It's late, and I may be tired,so any other quesions, email me, and I'll help, OK? Talk to you soon.

Answer 3

It is quite possible that you will double your investment after 5 years... With the extra 5k you're investing at the stqart of the second year you'll need between an 11 and an 11.5 percent yearly return on average, and that wouldn't be unusual. That said a few things to keep in mind...

If the market performs poorly you could wind up with less than this amount. If we go into a nasty recession (which I don't think will happen but could be possible) you could even lose money.

PG is a safe bet, but also a very large company that probably won't grow all that quickly. I would expect it to grow a bit more slowly than the market as a whole.

You might look into selling stock options on your PG stock. This is a good way to earn a little bit extra on your investments without taking on too much risk.

Answer 4

The Rule of 72 states that money doubles at the rate of interest divided into 72. Therefore, 72 divided by 5 equals 14. You'd have to make 14% interest. The average stock market is about 11%, so you'd have to do better than the market. T Bills won't do that. Options are difficult and most people fail at them. Most mutual funds don't beat the market. I'd say to invest in stocks paying a dividend with a strong growth rate: I've done well with Exxon. There's no guarantee, though. If you're willing to put in time and get educated, you might consider real estate, particularly buying and renting out single family homes with positive cash flow, but you're going to have to learn a lot. I'd suggest taking some courses through www.mrlandlord.com.

Answer 5

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/e3f14

Answer 6

For me it would be possible to invest $25000 and to have $50,000 after 3-3.5 years. I have invested in my friend's business. Now I am getting 30% annual interest.
Forget about CD's, stocks, FOREX, etc. Better invest in small business. You can contact me for a good advice.
I wish you success!

Answer 7

in basic terms deliver him to a neighbor's domicile with $5 and a notice pinned to his shirt explaining that when you consider that mommy gave up the reliable stuff she has to drink double of the cheap $hit, and is now too unwell and inebriated to colour eggs with the new child.