Grant Cardone: Here’s What You Should Do When Your Savings Reach $100K
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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If you’ve accumulated six figures worth of savings, it’s time to make some money moves. While that money can earn some interest in a savings account, you’re likely better off moving it to a vehicle that will provide you with higher returns.
GOBankingRates spoke with Grant Cardone, private equity fund manager and real estate investor, to get his best advice on what to do when your savings reach $100,000 — here’s what he said.
Look For Income Opportunities
According to Cardone, ideally, you would use that $100,000 to make more money.
“If you have $100,000, the most important thing you can do is take that $100,000 and look for, not withdrawal opportunities, but income opportunities,” he said. “I don’t want to eat into the $100,000; I want to live off the $100,000.”
Cardone said that in a “perfect scenario” that $100,000 investment would pay you between $5,000 and $6,000 in untaxable income each year.
Opt For Real Assets
When deciding on the type of asset to put that $100,000 toward, Cardone said to opt for real assets.
“[I wouldn’t invest in] a paper asset, like Treasury bill bonds or municipal bonds,” he said. “I don’t want any of the paper. I don’t care if it’s backed by the U.S. government. First of all, those investments are taxed, and number two, they’re paper. I don’t want to be backed in paper, I want to be backed in a real asset.”
Cardone said the best investment you can make with $100,000 would be a rental property.
“That $100,000 could provide an investor with $500 or $600 a month in income that’s not taxed, so that’s like $1,000 a month,” he said. “They haven’t eaten into their capital, and even if the value of the dollar goes down, the value of their investment goes up.”
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