Ways to double your money start with risk, timing and the Rule of 72

The best ways to double your money depend on two blunt questions: how fast you want it done, and how much loss you can stomach if the plan goes wrong.

Financial experts say savers have several routes, from slow-and-steady investing to riskier speculation. Traditional savings accounts may be a weak tool for that job, with an average annual percentage yield of 0.42%, according to CBS News. Higher-yield accounts, certificates of deposit, market investments and career moves can all play a role, depending on the timeline.

How can you double your money?

Michael Morgan, president of TBS Retirement Planning, points to the Rule of 72 as a quick way to estimate how long doubling could take. Divide 72 by the annual return rate, and the answer is the approximate number of years needed to double an investment.

Using Morgan’s example, a 6% annual return would take about 12 years to double money. A 12% annual return would cut that estimate to about six years.

That math can expose a mismatch fast. A person trying to double money in 10 years would need at least a 7.2% return, so a 5% savings account would not be enough to hit that goal on that schedule.

Fast money usually means higher risk

For savers trying to double money quickly, experts warn that safer products may not move fast enough. Morgan said investors with a more aggressive risk tolerance may have a shot at bigger gains, but they also face bigger possible losses.

Higher-risk routes cited by experts include cryptocurrency, day trading, options speculation and investing in businesses or startups. Those approaches can move quickly in either direction.

Adam Sommers, lead planner and chief investment strategist at Sommers Financial Management, said there is no safe way to double money fast. He cautioned that options, crypto and stock speculation can produce quick gains, but can also wipe out a balance.

Long-term plans lean on diversification

For people with years to work with, experts favor a broader mix. James Allen, a certified public accountant and founder of Billpin, recommends first taking full advantage of any employer 401(k) match because it adds money to retirement savings without requiring extra investment risk.

Allen also points to regular investing in an S&P 500 index fund. He said the index has delivered an average annual return of around 10% over long periods, which could double money in about seven years under the Rule of 72.

Other tools named by experts include CDs, money market accounts, high-yield savings accounts and real estate. The point is to spread money across different assets rather than relying on one bet.

Investing in yourself can raise earning power

Michael Wagner, chief operating officer of Omnia Family Wealth, said building wealth can also mean spending on skills, education or credentials that improve earning potential.

That could include a certification, a graduate degree, a business launch or a new product. Experts caution that business ventures carry risk, especially for people without a solid emergency fund.

Joseph Catanzaro, a financial advisor at Oak & Stone Capital Advisors, said investors should weigh goals and risk tolerance before choosing a strategy. Quick gains may be possible, but experts say a disciplined, diversified, long-term plan is more suitable for most investors.

This story draws on original reporting from CBS News.