How to Multiply Your Money

The allure of doubling your investment (in a relatively short time) has seen many people fall victim to investing scams over the years. However, with the right strategy, consistency and patience, individuals can build their wealth in ways that have worked for many. Whether it’s through the power of compounding interest or capital appreciation, there are strategies available that enable investors to multiply their money.

As Volker Hartzsch – an experienced business coach and trainer – knows, the demand to find effective ways to grow wealth has led to the popularity of passive income streams. From dividends to real estate and online business, many people look to these avenues to expand their financial portfolio without necessarily allocating too much time or focus to them.

However, there are a few caveats when it comes to investing:

• Be honest about risk appetite; a market plunge is not the time for an investor to realise they can’t ride out the dip
• Greed and fear can significantly impact investment decisions, so recognise and mitigate against these proactively
• By all means, stay away from get-rich-quick schemes that promise minimal risk for guaranteed results

Is It Realistic?

Doubling wealth is realistic and can be accomplished in many ways, including:

The Classic Way: The more conservative route to doubling an investment is to build a portfolio that has more focus on bonds and short-term treasury investment assets. A classic 60 percent equities and 40 percent bonds portfolio should double in roughly nine years (with about 8.6 percent annual returns), but with the investor also bracing for volatility along the way.

The Contrarian Way: Just as elite athletes have slumps, so too do the stock prices of great companies. And when they experience downturns, some investors see opportunities rather than risk. Contrarian investors, as they’re known, look for sectors or companies experiencing temporary downturns and make the most of the reducing prices to become shareholders.

The Speculative Route: Investors with a high degree of risk tolerance and investment capital to spare can consider using the speculative approach, which includes investing in aggressive strategies such as margin trading, options and cryptocurrency.

Time and Risk

An investor’s age and investment objectives are significant factors in determining how much risk they can take, which, in turn, affects the types of investments to go for. Young investors starting out can absorb more risk if they’re taking a long-term view, compared to a retired individual looking for stability.

Meet Volker Hartzsch | The Co-founder and Director of Sixth Society

Volker Hartzsch is a serial entrepreneur and investor who has founded and sold 19 companies to date and invested in more than 23 other start-up businesses.

When deciding which new businesses to support, if Mr Hartzsch doesn’t understand a business he won’t invest in it. For Volker, it’s critical that a business’s founders have the drive and passion to make their dream a reality.

Volker is also an experienced leadership coach and has personally assisted more than 180 people to achieve an annual seven-figure income. A key part of his coaching revolves around what he calls the ‘Big 3’ principles. First, if a leader says they’ll do something, they should always keep their word. Second, he stresses that leaders should never ask others to do anything they’ve not done themselves or have stopped doing. Finally, Volker says it’s vital for leaders to tell people what they need to hear, not what they want to hear.