Turn $5k Into $50,000
Money Magazine Australia|August 2017

An investment that grows tenfold sounds like the answer to our financial prayers. It’s tricky if you want to do it quickly and still sleep at night but it can be done if you plan carefully. Alternatively, you can take your time and play it safe. Or there’s a middle course. Our three experts examine strategies for three risk profiles: low, moderate and high.

Turn $5k Into $50,000

If you’re willing to take a lot of risk – the type that might give you sleepless nights – you can potentially turn $5000 into $50,000 in a matter of weeks using strategies such as contracts for differences, trading forex or day trading. But you are just as likely to turn that $5000 into nothing if you have no real idea what you’re doing.

“There are rare individuals out there – I believe a handful globally – who can pick markets and add to market efficiency,” says Steve Greatrex, financial adviser from Wealth on Track. “But it is not me – and it probably isn’t you.”

Another fairly high-risk approach is something called “double gearing”. This would involve using the $5000 as a deposit for a margin loan and then using this loan to finance an investment in a geared share fund.

High-octane strategies like these aren’t for everyone. Which investment strategy you choose will depend on how much risk you are prepared to take and how investment savvy you are. You can put your toe in the water and do it slowly. Or you do something more radical and jump right in.

We have asked three experts to come up with strategies for a low-, moderate- or high-risk option. These all assume you make no additional contributions of your own money, which means it will take time to reach your $50,000 goal. But of course you could speed things up by regularly topping up your investment.

It’s also important to actually start and not put off a decision, because the sooner your money is working for you the quicker it will grow.

هذه القصة مأخوذة من طبعة August 2017 من Money Magazine Australia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة August 2017 من Money Magazine Australia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من MONEY MAGAZINE AUSTRALIA مشاهدة الكل
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 mins  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 mins  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 mins  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 mins  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 mins  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 mins  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 mins  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 mins  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 mins  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 mins  |
July 2024