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September 16, 2020 1 minutes checked out
Viewpoints expressed by Entrepreneur factors are their own.
Financial advisor Jeff Rose discusses the barbell investing technique, an investment method that gives up bonds and stocks and prioritizes risk-averse investments (money) and high-risk investments.
Rose goes over the crucial principles of the barbell investing strategy, particularly:1. Money is always king (one side of the barbell). Access to money from risk-averse financial investments such as a savings account gives you the flexibility to pursue the right high-risk investments when they present themselves.2.
Have the right and correct quantity of insurance coverage. Get the insurance coverage you require– life, health, home, auto, service, etc.– and develop from there.3.
Limitation your financial investments in stocks and bonds (the barbell’s “middle”). Invest no more than 10 percent of your money in traditional stocks, bonds and products, considering these financial investments as fun.
4. Focus on high-risk, high-return financial investments (the other side of the barbell). These consist of cryptocurrency, start-ups and your own company. Go for ten-to-twenty percent exposure. You can make as much as four-to-100 times your investment, growing $10K to $1,000,000.
Related: 7 Ways to Double Your Money (Quick)
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.