Grant Cardone, the outspoken CEO of Cardone Capital, is not buying into Vice President Kamala Harris’ recent outreach to the cryptocurrency community. Cardone believes her actions are simply political maneuvering, aimed at securing votes rather than genuine support for the crypto space. He contends, “Harris has had no shift toward the crypto industry.”
In stark contrast, Cardone sees former President Donald Trump as having a more informed perspective on the digital asset landscape. When asked about Harris’ potential impact on the industry, Cardone was blunt: “If she is elected, forget crypto.” He praised Trump for allegedly recognizing the vulnerability of the U.S. dollar to overprinting and for exploring the potential of crypto to back the dollar.
While Cardone supports Trump’s stance, it’s worth noting that the national debt skyrocketed to $22 trillion during Trump’s presidency, with an additional $8 trillion added in just four years.
But Cardone’s criticisms extend beyond the political arena. He is a vocal critic of traditional retirement savings vehicles like 401(k)s and IRAs, labeling them “traps that prevent people from ever having enough.” Cardone argues that their tax implications and the potential for future tax rate increases could end up costing investors more in the long run. He believes the system is fundamentally flawed, stating, “I believe that Wall Street and the IRS got together and said, ‘Hey, we want to capture this money for long periods of time and we’ll benefit you by hammering these people [on taxes].”
Cardone also highlights the devastating impact of inflation on these retirement savings plans. He believes that maintaining liquidity and investing in more immediate opportunities is key to building wealth. Instead of consistent contributions to retirement accounts, Cardone advocates for a more aggressive approach, urging people to significantly increase their earnings and invest in “secured, sacred (untouchable) accounts.” He stresses that these accounts should be off-limits, even in emergencies, aiming to build a more substantial financial safety net.
Despite Cardone’s criticism, 401(k) plans remain incredibly popular, with Americans holding $7.4 trillion invested as of the fourth quarter of 2023. On average, employees contribute 7.4% of their pay, with employers adding an extra 4.5%. Critics argue that Cardone’s dismissal of 401(k)s overlooks their significant benefits, such as employer matching contributions and substantial tax advantages. These can be instrumental for those who may not have the expertise or risk tolerance for high-stakes investments like real estate.
Cardone’s financial philosophy places a strong emphasis on financial education. He recently criticized Harris again, this time for her proposal to create 25 million new businesses in her first year if elected. Cardone pointed out that the U.S. already has about 32 million small businesses, with 67% just breaking even or losing money. He believes the focus should be on improving financial literacy, not creating more businesses. “What people really need is financial education,” Cardone emphasized, taking a jab at Harris’ claim of once working at McDonald’s, suggesting that financial education should be accessible to all, including those in entry-level jobs. He argues that lack of financial literacy is a major reason why so many new entrepreneurs fail. Starting a business requires more than just an idea; it demands a deep understanding of finances, markets, and long-term planning.
Cardone believes most Americans are ill-equipped to manage their money effectively, leading to struggles in maintaining profitability in their ventures. “The more people learn about budgeting, saving, and investing, the more they’ll succeed, both in the workplace and personal life,” he asserts.
Financial literacy experts echo Cardone’s concerns. Suze Orman, a renowned personal finance expert, points out that “95% of Americans lack financial literacy.” She emphasizes that many people don’t understand the basics of retirement planning, budgeting, or investing, which significantly hinders their ability to build wealth. A study backs this up, revealing that individuals with low financial literacy are 3.5 times more likely to be financially fragile and four times more likely to lack even a month of emergency savings.
While Cardone’s views may be divisive, his focus on financial education highlights an essential issue. Many believe that financial literacy could help address some of the economic challenges faced by both individuals and the broader economy. However, others argue that starting more businesses can also benefit the economy by creating jobs, fostering competition, and introducing innovation.
These topics, among others, will be explored at Benzinga’s Future of Digital Assets event on November 19, where industry experts, investors, and policymakers will delve into the complexities of the financial landscape and discuss the role of digital assets in shaping the future.
