Grant Cardone: Here’s What You Should Do When Your Savings Reach $100K
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.
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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.
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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.
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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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This article originally appeared on GOBankingRates.com: Grant Cardone: Here’s What You Should Do When Your Savings Reach $100K
