I’m a Financial Expert: Why Grant Cardone’s Approach to Taxes Is Flawed
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Finance expert and real estate mogul Grant Cardone is notoriously critical of the way Americans have to pay federal income taxes, and has said on Instagram that he does everything he can to not pay them through a variety of workarounds.
These involve such things as million-dollar write-offs and investing profits from one business or real estate venture into another. These tips may be good for the ultra wealthy, but they’re not much help to the average American.
Christopher M. Naghibi, Esq., an attorney, executive vice president and chief operating officer at First Foundation Bank, takes issue with Cardone’s approach and explains why.
There’s a Catch
Naghibi is not afraid to publicly criticize Cardone for this and other advice he considers “disinformation.” While he admires that Cardone has built “an impressive business empire,” he sees it as a strategy that is self-serving for Cardone.
“Most of his recommendations conveniently steer people toward services and investments he directly profits from. If it sounds new and sensational, you’re probably getting sold something,” Naghibi said.
He Takes Advantage of Social Media-Savvy Users
Cardone’s advice is “a pitch designed to resonate with younger, social media-savvy audiences hungry for success but lacking the experience to critically evaluate his advice,” Naghibi said.
While Cardone’s approach isn’t new, but rather a time-tested process of blending education with sales, Naghibi is unimpressed with how practical his advice is for the average person.
He Minimizes the Risks
One of Cardone’s more alluring promises is the idea of avoiding taxes by reinvesting profits, which, on the surface, sounds great, Naghibi said. “But this strategy is much more complicated than he makes it out to be and is largely impractical for the average person. Reinvesting profits to reduce taxable income requires substantial disposable income to begin with, along with access to skilled accountants and tax advisors to ensure everything is done correctly,” he explained.
Even if a person is able to clear those hurdles, there’s still significant risk in that approach, he said. “Investments aimed at tax reduction can be highly speculative, and unlike traditional tax-advantaged accounts, they don’t always offer the security or diversification most people need.”
Naghibi warned that without proper resources or experience, the likelihood of financial missteps is high.
It Poses Ethical Questions
There’s also an ethical side to Cardone’s advice, Naghibi pointed out. “Taxes fund the public infrastructure and services that enable businesses and individuals to thrive. No one likes paying taxes, of course, but avoiding them altogether shifts the burden onto others and undermines the very systems that make economic success possible,” he explained.
Not to mention that Cardone’s narrative that “the rich don’t pay taxes” is misleading, Naghbib said. “He’s asking people without substantial wealth to mimic strategies designed for those with far more resources and financial literacy.”
He Appeals To Emotion
Nhaghibi can see Cardone’s appeal and is not unimpressed with his ability to captivate an audience by “selling not just a product, but a lifestyle,” he said. However, he is keenly aware that Cardone’s rhetoric is designed to create an emotional connection, “Framing himself as the gatekeeper to financial freedom and fostering a sense of exclusivity. By rejecting traditional advice, his followers feel like they’re joining an elite group of insiders who have cracked the code to escaping the rat race,” Nabhibi said.
It Glosses Over Difficulties of Personal Finance
Cardone’s kind of messaging, while inspiring, also glosses over the realities of personal finance, Naghibi said. “It encourages followers to take risks they may not fully understand, while leaving Cardone in a position of power as the one who profits no matter what. In some ways, his ecosystem resembles a pyramid structure: followers give him money to invest, enriching him further, while betting on their own eventual success.”
While he isn’t calling Cardone’s approach to avoiding taxes and wealth-building “wrong,” per se, Naghibi said it’s far from universally accessible. “His strategies work for him because of his unique resources, connections and risk tolerance. For most people, however, sustainable financial success comes from balanced, time-tested strategies.”
The Real Path to Financial Independence
Naghibi said you don’t need to buy into someone else’s system to achieve financial independence. “Instead, focus on creating a plan that aligns with your goals, values and personal circumstances. By critically evaluating advice — even from someone as compelling as Cardone — you can avoid the traps of aspirational marketing and chart a path to success that truly works for you.”
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