Grant Cardone Says Don’t Rely on Social Security in Retirement– Do This Instead

©Grant Cardone

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

For many Americans, Social Security has long been a bedrock of their retirement strategy. But according to some financial experts, that bedrock may be crumbling.

Grant Cardone, a private equity fund manager and real estate investor, is one of those experts. In a 2024 interview with GOBankingRates, he warned that the risk of Social Security trust fund reserves falling short could mean the age to start collecting benefits may rise.

“The money is going to run out,” he said. “Social Security cannot support [retirees]. It’s been a busted system my whole life. So, if it can’t support people in retirement, people need to keep working to earn money.” 

If the thought of working until you’re in your 70s — or even older — is alarming, you might be interested in Cardone’s suggestions for what savvy retirees should do instead of relying solely on Social Security. 

Think Beyond Traditional Retirement Accounts 

From the time most people start working, they’re encouraged to contribute to 401(k)s and IRAs. However, Cardone believes these traditional accounts lack liquidity, transparency and control, while also coming with tax uncertainty, among other concerns. 

While his approach of forgoing traditional retirement accounts in favor of real estate is controversial — you’d be missing out on employer matches and potential tax advantages, essentially leaving free money on the table — he isn’t wrong in suggesting that retirees will need multiple sources of income. 

Cardone prefers income-producing real estate as an investment. He particularly likes apartment buildings, in part because they generate monthly cash flow that could provide retirees with a consistent stream of passive income. 

But real estate isn’t the only option. Other ways retirees can generate income include: 

• Dividend stocks and funds 
• Annuities 
• High-yield savings accounts and CDs 
• Part-time or consulting work 
• Freelance or gig-based projects
• Renting out part of your home 
• Selling artwork or creative projects 
• Bonds 

Depending on your situation, there are several ways to earn money even when you’re not drawing a paycheck — regardless of what happens with Social Security.

Find Outlets To Make Passive Income 

One of Cardone’s key strategies for building wealth is generating passive income. He favors real estate in part because it provides monthly cash flow through a resource everyone needs: housing. 

Cardone also emphasizes the importance of reinvesting earned income into assets that generate passive income — rather than spending it all. 

“I never improve my lifestyle off of earned income. Earned income gets invested; passive income can be spent,” he said.

Working with a financial advisor, retirees would be wise to identify passive income streams that suit their lifestyle — whether that means going big on real estate or taking a more balanced approach that includes traditional investments like stocks and bonds. 

Start Early and Invest Often 

The best time to start preparing for retirement may have been yesterday — but today is the next best time. Cardone urges people to begin investing in their future as soon as possible. 

In his interview with GOBankingRates, he explained how early real estate investments can benefit from long-term rent increases. 

“If you look back at rents in 1940 in this country, they were $27 a month. This year, the median rent in America is $2,000,” he said. “And that will continue to happen. In the next seven years, I predict the median rent in America will be $3,000, which means there will be tremendous amounts of wealth created in rental properties.” 

Starting early also makes sense for stock market investors, where compounding over time can significantly grow your portfolio.

Bottom Line 

If you’re concerned that Social Security won’t offer the same level of support your parents or grandparents received, you have good reason to be cautious. Rather than ignoring the issue, consider Grant Cardone’s advice: build multiple income streams and prioritize passive income. Most importantly, get started as soon as you can.

This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.

This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.

Share This Article: