Invest, don’t save
Cardone’s first piece of advice: Stop saving and start investing. He calls out the common adage, “A penny saved is a penny earned,” declaring that a penny saved is just that — one penny that will never grow. Investments, on the other hand, can multiply your wealth.
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With that potential of a greater reward, though, also comes a greater risk. And you should be prepared to part ways with your money for at least five years before investing it.
Avoid over-diversifying
Cardone also challenges the traditional advice to never “put all your eggs in one basket.” He dubs this a myth, claiming that “the wealthy don’t diversify; they have big investments in small numbers of things.”
But investing in “a small number of things” is still diversification. And it can absolutely be powerful if done strategically.
According to Capgemini’s World Wealth Report for 2024, High-net-worth individuals (HNWIs) are increasingly diversifying into alternative investments. Allocations into this asset group have risen from 13% to 15% since 2013 – which is a significant increase when considering HNWIs have portfolio sizes in the millions.
Alternative assets
Alternative assets refer to investments that aren’t usually included in a traditional portfolio of stocks and bonds. These could include digital currencies, real estate, art, or commodities. Here are two popular options:
1. Gold
Gold remains a safe haven asset because it tends to perform well during market downturns. For example, during the 2008 financial crisis and the onset of the pandemic, gold prices soared.
One way to invest in gold that also provides significant tax advantages is with a gold IRA from Priority Gold
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties.
When you make a qualifying purchase from Priority Gold, you’ll be eligible for an offer to receive up to $10,000 in free silver
2. Real estate
Real estate also plays a key role in wealthy Americans’ portfolios. The World Wealth Report revealed that, as of January 2024, the average HNWI portfolio invested 19% in real estate, up by 4% from the previous year.
Not all real estate investments are created equal, though. In Cardone’s book, How to Create Wealth Investing in Real Estate, he emphasizes the importance of calculated risk-taking. The conditions have to be ripe for it to be a wise, fruitful investment.
If you're an accredited investor looking for real estate opportunities, another option is First National Realty Partners (FNRP), which targets necessity-based commercial real estate.
The platform lets accredited investors [own a share of institutional-quality properties] leased by national brands like Whole Foods, CVS, Kroger and Walmart. Investors have the opportunity to collect stable, grocery store-anchored income every quarter.
As a private equity firm, FNRP acts as the deal leader and offers white-glove service to investors, providing expertise and doing the deal legwork. While the FNRP team takes care of sourcing new deals, you can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.
Invest with the right support
Another common thread among the wealthy? They don’t go it alone.
Northwestern’s 2023 Planning & Progress Study found that 70% of wealthy Americans work with professional financial advisors.
Cardone argues that developing a strategy to get out of the middle class is especially challenging if you’re surrounded by middle-class mindsets.
This is where a qualified financial advisor can come in handy. Finding a financial advisor that suits your specific needs and financial goals is simple with Vanguard.
Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
With a minimum portfolio size of $50,000, this service is best for clients who already have a nest egg built and would like to try to grow their wealth with a variety of different investments. All you have to do is set up a consultation with a Vanguard advisor, and they will help you set a tailored plan and stick to it.
