Author of “The Wealth Creation Formula” and founder of Cardone Capital, Grant Cardone has built a billion-dollar empire by challenging conventional financial advice. He believes that outdated beliefs about saving and retirement age are keeping people stuck in the middle class. If you’re serious about building retirement income and achieving financial goals, it’s time to rethink what you’ve been told.
Be Aware: This Common Habit Can Ruin Your Retirement, According to Dave Ramsey
Read Next: 6 Things You Must Do When Your Savings Reach $50,000
If you are one of the many Americans who dream of a stress-free retirement, but aren’t sure what steps to take, Cardone has some advice for you. In a world where financial planning mistakes can cost you decades of financial security, Cardone warns that two major retirement myths are holding people back from true wealth and freedom.
Here are the two biggest retirement misconceptions Cardone says you need to unlearn before it’s too late.
Your Retirement Years Are Your ‘Golden Years’
Before hitting retirement, you may have grandiose ideas about all of the things you want to see and do during this time of your life. But Cardone said it’s important to be realistic about the limitations you’re likely to face in your older years.
“You’re 65 — it ain’t golden,” Cardone told GOBankingRates. “Your knees hurt.”
Find Out: 4 Retirement Expenses Boomers Didn’t Plan For — but Should Have
The Best Way To Prepare Is To Build a Large Nest Egg
Conventional retirement advice says to save a set amount in retirement accounts that you can tap into once you retire — but Cardone doesn’t think this is wise.
“People need cash flow when they retire,” he said. “They do not need a lump sum out of their retirement. No other time in your life will cash flow be more important than when you’re retired. You need your expenses paid, you need travel money.
“By that time, you should be out of debt. You don’t want a home — you want to travel. When you’re 65 years old, you’re not making big investments. You’re just paying expenses every year.”
Having cash flow in retirement can also help you pay for a big expense that many people forget about or don’t budget enough for — long-term care.
“The cost today is about $7,800 a month to put your parents in a home because you’re not equipped to handle them no matter how much you love them,” Cardone said. “[Many people plan for] their Social Security and their retirement account to take care of them, but they can’t.”
Instead of placing your funds in a retirement account, Cardone said the better move is to invest in income-producing assets.
“People should learn how to make big investments in their earning years in assets that will cash flow for them when they can’t earn anymore,” he said. “The goal would be to have more passive income in retirement than earned [income] because you’re not going to have earned income anymore.”
Caitlyn Moorhead contributed to the reporting for this article.
More From GOBankingRates
- 5 Items With Greater Value at Dollar Tree Than Costco
- Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too
- 5 Things You Must Do When Your Savings Reach $50,000
This article originally appeared on GOBankingRates.com: Grant Cardone Reveals the 2 Biggest Myths That Derail Your Retirement
