Grant Cardone: Donald Trump Can Solve 'Massive Problem' In The Housing Market, Advocates Financial Literacy Over 401(k)s

Grant Cardone, CEO of Cardone Capital and an upcoming speaker at the Benzinga Future of Digital Assets event, expressed confidence in former President Donald Trump‘s ability to resolve America's deepening real estate crisis if he returns to office.

What Happened: In an interview with Fox Business on Monday, Cardone highlighted what he sees as a dire situation in today's housing market, plagued by high mortgage rates and limited affordability.

According to Cardone, the housing market is experiencing a “massive problem,” with the highest home prices and rental rates found in large, Democratic-leaning cities.

He emphasized the rising barriers to home ownership, saying, "If you want to buy a house, you can't. If you want to sell a house, you can't. If you want to get a mortgage, you can't afford it."

Cardone believes that Trump's approach would likely involve exerting pressure on the Federal Reserve to reduce interest rates, thereby revitalizing housing transactions.

"He did it last time," Cardone said, arguing that Trump's approach would catalyze mortgage affordability and increase homeownership.

Cardone's comments come amid recent criticism he's voiced about Vice President Kamala Harris's outreach to the cryptocurrency community, a move he considers politically motivated without substantive support for the industry.

"Harris has had no shift toward the crypto industry," Cardone said, framing her actions as election strategies rather than genuine initiatives for digital assets.

In contrast, Cardone regards Trump as a more crypto-friendly candidate, citing his understanding of the potential benefits of digital assets. "If she is elected, forget crypto," he commented.

Cardone argued that maintaining high interest rates has made housing unattainable for many Americans, resulting in stagnation in home sales and mortgage applications.

“Until rates breach 4%, you will not have any movement in the housing market,” Cardone asserted, noting that the inability of potential buyers to afford homes or qualify for mortgages has frozen the market.

Cardone's support for lower interest rates aligns with his belief that Trump's return to office would include efforts to "bring rates down" through Federal Reserve influence.

In his advocacy for Trump's real estate policies, Cardone drew parallels between Trump's direct, sales-driven style and his capability to communicate effectively with Americans facing housing difficulties.

Cardone referred to Trump's marketing strategy as “genius,” praising him for his visibility on influential platforms like Joe Rogan's podcast, which has reached millions of Americans.

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Cardone emphasized that this approach reaches beyond typical political campaigning, bringing financial and economic concerns to the forefront of public discourse.

Apart from real estate, Cardone is vocal about his stance on financial literacy over traditional retirement savings plans. He frequently criticizes 401(k) and IRA plans, viewing them as "traps that prevent people from ever having enough."

Cardone claims these plans fail to generate substantial wealth due to tax obligations and inflation, urging instead a more immediate, aggressive approach to wealth accumulation.

"The tax implications of 401(k)s and potential rises in tax rates could end up costing investors more in the long run," he asserted.

Cardone's approach emphasizes keeping liquid assets for immediate investment opportunities, rather than consistent small contributions to retirement accounts. He promotes the creation of "secured, sacred (untouchable) accounts" as a foundation for long-term wealth, advising against withdrawals even during emergencies to ensure financial security.

Critics of Cardone's view, however, note the popularity of traditional retirement plans, with 401(k) accounts alone holding $7.4 trillion in assets as of late 2023.

Cardone's dismissal of these options overlooks significant tax benefits and employer contributions that help Americans build savings without direct high-risk exposure.

But Cardone argues that financial education should be the primary focus, as many Americans are underprepared to manage their finances, contributing to personal financial instability.

Cardone's insights into financial policy and digital assets will be among the key topics at the Benzinga Future of Digital Assets event on Nov. 19, where he will join experts to discuss the future of real estate, financial literacy, and digital assets.

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