How the Barbell Investment Strategy Works We all want to make the highest return possible with the lowest amount of risk. Learn how.

By Jeff Rose

Opinions expressed by Entrepreneur contributors are their own.

Financial advisor Jeff Rose talks about the barbell investing strategy, an investment strategy that forgoes stocks and bonds and prioritizes risk-averse investments (cash) and high-risk investments.

Rose discusses the key principles of the barbell investing strategy, namely:

1. Cash is always king (one side of the barbell). Access to money from risk-averse 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 proper amount of insurance. Get the insurance you need — life, health, home, auto, business, etc. — and build up from there.

3. Limit your investments in stocks and bonds (the barbell's "middle"). Invest no more than 10 percent of your money in traditional stocks, bonds and commodities, considering these investments as fun.

4. Focus on high-risk, high-return investments (the other side of the barbell). These include cryptocurrency, startups and your own business. Aim 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 (Fast)

Jeff Rose

Certified Financial Planner, Author and Blogger

Jeff Rose is an entrepreneur disguised as a certified financial planner, author and blogger.  He's best know for his blog GoodFinancialCents.com and book, Soldier of Finance: Take Charge of Your Money and Invest in Your Future.  He's also the editor of LifeInsurancebyJeff.com. He escaped a path of financial destruction from dropping out of college with over $20,000 of credit card debt to become a self-made millionaire. His mission is help future generations achieve financial freedom by developing strong money habits and unleashing their entrepreneurial spirit.   

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Business News

Fans of Costco's $1.50 Hot Dog Combo Are In for a Big Surprise

Costco CEO Ron Vachris announced a change that's coming soon to the company's food courts.

Business News

'Nobody Ever Gave Me Anything': More Boomers Say They're Not Transferring Wealth to Family Until They're Dead

A new survey from Charles Schwab found boomers are more hesitant to distribute their wealth than other generations.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

How a Mindfulness Practice Can Help You Beat Tech Overwhelm

This article explores how mindfulness can transform your tech choices, ensuring technology serves your business goals without adding unnecessary complexity.

Business News

Instagram Is Offering TikTok Creators Up to $50,000 Per Month For Exclusive Content

Leaked deals show that there are strict terms to receiving the money.