The Barbell Investment Strategy

If you think very long-term, it informs you what to do in the short-term.  For example, if you want to live to be 100 years old, you’re probably not going to decide to down a bottle of scotch tonight.   If you plan on having a long-term marriage, you probably will decide to come home every night.  You get the idea.

 

The 100 Year Real Estate Investor concept considers how to increase the probability that investors will create long-term, legacy wealth.

 

So, what is “The Barbell Investment Strategy?”

 

It is a very straightforward way for long-term investors to position their wealth into three distinct buckets.

Think about a weight lifter’s barbell. Imagine a thin metal bar in the middle, with large weights positioned on each side.

The two most important buckets of this investment strategy are represented by the heavy weights on both the left and the right sides of the barbell.  I believe that investors should put the vast majority of their wealth into these two buckets, and here’s why. 

The LEFT side is at least 40% of your money, and this should be invested in very liquid and conservative savings products that have tax advantages. This includes cash, money market accounts, and dividend-paying whole life insurance policies that are safe, secure, and which come from mutually-owned insurance companies.

The RIGHT side of the barbell is where you should invest 40% of your net worth in illiquid, higher-yielding, long-term holdings, such as the stock in your company, real estate, other private companies, and the like.  It should contain investments in which you have a high degree of knowledge and expertise.   This is where you can generate a tremendous amount of long-term investment returns.

The MIDDLE part of the barbell takes full advantage of the maximum savings into your IRAs, Roths, 401k accounts, and similar programs offered by the government. Thus, these investments most likely will go into the stock and bond markets.

Easy, right?

 

The Barbell Investment Strategy is simple to utilize and helps you avoid the chaos and moving parts of traditional long-term savings and investment plans.  No financial solution is one-size-fits-all. So, please discuss positioning your assets this way with a member of our Team.

Each Member of the 100 Year REI Team is a Bank on Yourself® Professional, and are experts in the Infinite Banking Concept®. We are licensed and service clients nationwide. All Team Members collectively own 35 policies and specialize in working with Real Estate Investors. Click the button below to schedule a consultation with us today.