Grant Cardone: This Is the Best Way To Create Generational Wealth
Written by
Gabrielle Olya
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Chris Cluff
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For many Americans, being able to leave a financial legacy for future generations is an important goal. While there are numerous ways to go about doing so, Grant Cardone, author of “The 10X Rule” and creator of the 10X Profit Planner, believes that there is one asset that stands above the rest when it comes to creating generational wealth.
Here’s what Cardone said you should do if you want to create wealth for future generations.
Cardone also said, “Nobody becomes wealthy because of a salary.”
Choose Real Estate Over Stocks
Traditional retirement advice says to save up a $1 million-plus nest egg in a retirement account, but Cardone believes that $1 million will create more wealth for future generations if it’s put into income-producing real estate.
“I would love to never tap the million dollars, but to just use the cash flow [from the real estate investment] over the next 23 years to live off of it [in retirement],” he told GOBankingRates. “Then when I’m dead, that million dollars then gets passed on to my kids as a piece of real estate that we never touched.”
While money in an investment account typically gets passed on as a single lump sum that eventually runs out, Cardone said, a real estate investment continues to generate wealth for future generations.
“The stock market doesn’t do that,” he said. “Let’s say your kids are 20 years old when you die. They’re going to cash out the stocks. That’s not generational wealth — that’s just cashing out. With the real estate, the real estate could then be passed on to your two kids, and each of them is now getting $5,000 or $6,000 a month [for life].”
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