Grant Cardone sends message to US families: Your retirements are at ‘risk’

10s of millions of household savings and retirement nest eggs could be in jeopardy. All is our next guest warns of a rare market scenario that has only occurred three times in the last 100 years. Real estate investor and private equity fund manager Grant Cardone joins us now. And I think the phenomenon that you’re talking about is the inverted yield curve. All that means is rates are higher on the short end, lower on the long end, and they’ve been like that for over 500 days. What is that telling you? It’s happened three times, Jackie, in history and all three times back in 21 back in what are the three dates here? Probably 29. They were devastating. Yeah, exactly. And these, they were devastating with over 50% pull backs in the S&P 500 with people losing over 50% in their retirement accounts. There’s $38 trillion today sitting in retirement accounts that benefit State Street and Vanguard and Charles Schwab. And these trillion trillion dollar basically institutions and people are at risk today and should be told that their retirement accounts are at risk of both a 50% pullback and the inflation effect. And on top of that, Biden’s promise to raise capital gains tax to double what they are today. Grant, you’ve got 68% of retirees right now saying they’re concerned that they’re going to outlive their assets. You’re obviously talking about this, you’re calling for a a huge pullback in the market. But even if you don’t get that grant, how do you help retirees think about alleviating their concerns that they’re not going to have enough to retire on for the duration? Well, it’s a great question, Brian. And and you know, when the problem today is, we’re not telling these retirees the effect of inflation in just the last four years, the purchasing power, the effect on inflation, the purchasing power on their retirement account, let’s say they had 200,000. The the invisible tax on that is 50,000 of that 200 grand. In addition to that, look it it appears to me that the IRS benefits, Wall Street benefits and the IRS benefits by delaying a tax bill till let’s say 10 years from now or 15 years from now when we all know taxes will be higher. If that happened just on $200,000 in a retirement account which is about double what the average retiree has, you’re talking about another 25 thousand $50,000 in taxes and another 50,000 possibly $75,000 / 10 years of the effect of the purchasing power, the effect of inflation on the purchasing power. So what I would tell and retirees this is what I’ve told my own family to do. This is what I did with my retirement account is I self-directed, pulled it out of Wall Street to get away from the effect of the the potential of a loss at these heights that we’re at and converted that at no penalty to a real property that cash flows and actually benefits from inflation and avoids the tax man. So that when I retire I get cash flow not a lump sum because let’s face it, when you’re 65 years old you don’t need a lump sum, you need cash flow. Absolutely, really interesting and innovative. Grant, I also want to ask you about the housing market. Now that you brought up properties because you’re saying that we won’t see a change on the situation that we’re in, sort of this stalemate position until rates go below 4%. But with inflation high, I imagine that could be some time. Well, inflation’s never controlled prices, OK? Like it. It doesn’t control gas prices, food prices, electricity. It’s completely a forest. Like Jerome, Powell has not done anything to control the cost of wages, insurance, housing, healthcare, food, electricity, gas, nothing 0. This is a failed attempt. It’s botched. Paul Volcker back in the 80s took eleven years to supposedly control inflation. That that if you if your business doesn’t make it for 11 years, you didn’t make it. That’s not success. Well said Grant. Thanks so much for your time and perspective here.