Grant Cardone Warns Social Security May Disappear — How To Retire Without It
Written by
Gabrielle Olya
Edited by
Rebekah Evans
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Roughly 69 million Americans receive Social Security benefits every month and for some of those beneficiaries, it’s a lifeline. Among recipients ages 65 and older, 12% of men and 15% of women rely on Social Security for 90% or more of their income, the Social Security Administration (SSA) reported.
However, long-term projections by the Committee for a Responsible Federal Budget show that the Social Security retirement trust fund could be insolvent as soon as 2032. While that doesn’t mean benefits would vanish overnight, it does raise concerns for workers who are years or decades away from retirement.
That uncertainty is why Grant Cardone, private equity fund manager and real estate investor, said people should focus on building their own retirement income rather than counting on government benefits.
“Social Security is the promise of cash flow — and if you believe that the government can deliver on that, then you’re more trustworthy than I am,” Cardone told GOBankingRates. “I don’t believe they can deliver on it.”
Instead of relying on Social Security to fund your retirement, he recommended creating your own source of long-term cash flow — here’s how.
Why Holding Too Much Cash Can Hurt Retirement Savings
Cardone, who will be hosting the 10X Wealth Conference in Miami on May 16 and 17, cautioned against keeping large amounts of retirement money in cash, particularly during inflationary periods.
“As they print more money, real assets become more expensive,” he said. “Real estate benefits; cash doesn’t.”
Inflation erodes purchasing power over time, meaning money that sits idle may buy less each year — a serious concern for retirees who could spend 20 or 30 years in retirement.
Why Cardone Says Stocks Aren’t Reliable Retirement Income
Although stocks are often seen as a cornerstone of retirement investing, Cardone does not view them as dependable long-term income sources.
“I don’t know if Palantir, Facebook, Google or Tesla are going to be around in 20 years,” he said. “Most of them will not be here because something’s going to replace them because companies don’t last. The average company today lasts less than 12 years.”
Cardone believes that many artificial intelligence (AI) companies — even those that are currently booming in the market — will likely disappear by the time someone who is in their 50s now is ready to retire.
“Ninety percent of the AI companies are going to fail — at least 90%, maybe 98%,” Cardone said.
Another downside of stocks, he noted, is that most do not generate income.
“Stocks don’t cash flow,” Cardone said. “And stocks that do cash flow might not be here 30 years from now.”
Why Income-Producing Real Estate Appeals To Retirement Investors
For Cardone, real estate stands apart as a smart long-term investment because it has historically endured economic shifts and can generate income regardless of short-term market conditions.
“Real estate’s still going to cash flow,” Cardone said.
Rather than focusing on property values, Cardone said retirement investors should pay closer attention to how many income-producing units they own.
“If you’re banking on real estate to be your retirement account or your entire source of retirement income, it’s really going to be about how many units you have,” Cardone said. “The most important number in real estate is the number of people who pay you some cash flow.”
The Biggest Real-World Drawback of Real Estate in Retirement
Cardone acknowledged that the biggest downside of real estate investing is the burden of property management.
“The problem with real estate is when you’re 80, you don’t want to manage it,” he said. “I mean, even when you’re 28 you don’t want to manage it because it’s a lot of work. It doesn’t matter what age you are — nobody wants to handle termites and plumbing problems.”
As a solution, Cardone suggested a partnership structure in which older investors provide capital while younger partners handle daily operations. This approach allows retirees to benefit from real estate income without taking on hands-on responsibilities later in life.
Why Cardone Believes Real Estate Is the Best Substitute for Social Security Income
To replace or supplement Social Security income in retirement, you need:
- An asset that won’t disappear
- Reliable and growing cash flow over decades
- Protection from inflation
- Minimal hands-on management as you age
For Cardone, income-producing real estate is the best answer.
“You need something that’s not going to go away,” he said. “You can’t fail and it’s going to cash flow — and the cash flow is going to increase over the next 10, 15, 20 and 30 years.”
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