Barbara Corcoran Says Retirees Should Never Do These 5 Things With Money

Shark Tank notable Barbara Corcoran has a rich history of making the right money moves. She turned a $1,000 loan into a New York City real estate brokerage and sold it for $66 million. That set the stage for her continued wealth building, and she's now worth around $100 million.

Her advice is always direct, even if sometimes controversial. What we can say about her guidance is that it's often applicable to people in all stages of life, even if you're working on your retirement goals. Here are the money moves Barbara Corcoran says she avoids, and how retirees can adapt those ideas without putting their nest egg at risk. 

Don't let your cash sit idle

Corcoran has openly said, "I'm just not a believer in saving money … I've never saved a dime my whole life." And while this approach helped her build wealth, retirees don't have the same earning runway.

Her preference to put money into solid investments or spend on what matters can still apply to retirees, however. It doesn't mean you can't hold cash; it just means you can't afford to park most of your money in an ultra-conservative option that may not keep up with living costs.

In short, build an emergency fund and keep it accessible and spend (within budget) on things that matter. But aim for a balance of cash, bonds, and growth assets that grow quickly enough to last you for the rest of your life. Sticking to only low- or no-yield checking accounts won't do it.

Don't sell real estate too quickly just to feel safe

Corcoran's rule that it's "always a good time to buy" real estate highlights the trend of home values rising over the long term. By not rushing to sell, she has used property as a powerful wealth-building tool that may work for seniors who can afford to accumulate more assets.

However, many retirees consider downsizing their homes to free up room in the budget or to have less to care for in older age. While Corcoran has said she would "never sell my real estate," seniors shouldn't feel locked in if they've weighed all the options. It's true that once you sell, you lose potential appreciation or rental income, and large gains can trigger tax penalties. Your home can be a hedge against inflation, provided you can afford to maintain it.

Don't wait for perfect market conditions

Taking risks is a major part of Corcoran's wealth-building strategy, and she has warned that waiting for the right moment could result in missing an opportunity entirely. With home markets, specifically, she's encouraged buyers to buy when they can instead of waiting it out.

Retirees may interpret her advice and avoid delaying decisions around relocating or adjusting an investment mix, because there's a difference between care and paralysis. Waiting for everything to line up may ignore long-term needs and affordability, and less-risky, incremental steps (like phased portfolio rebalancing with the help of an advisor) may be better than all-or-nothing moves.

Don't mix finance and family

Corcoran has warned about mixing business and personal relationships, saying that hiring a pal is a red flag and that there is no room for emotion in business (especially for women).

But retirees may be asked and even tempted to invest in an adult child's or relative's venture, and this is where Corcoran's advice may be applied. Admittedly, these business arrangements can stress relationships and limit the ability to make good future business decisions.

If you do decide to help out or even pass down your existing business, create iron-clad conditions with clear, written contracts. State expectations about profit-sharing or repayment, and hire an attorney or planner to assist if necessary.

Don't ignore the numbers

You shouldn't guess about your financial health, and while Corcoran admits that she's not a financial whiz, she's shared on social media that you need to know your numbers "inside and out."

Retirees can also follow this advice, working past any anxiety or fear around their finances to get to the facts. If you're not already tracking annual spending, guaranteed income, portfolio size, and withdrawal rate, now's a better time than ever.

Simple tools or financial spreadsheets can help demystify the data and give you a concrete picture of where you're at and if your money can keep up with your lifestyle.

Bottom line

Building wealth won't look the same for everyone, and if you're close to retirement, it may be risky to take too much of Corcoran's advice to heart. Her tips are largely geared toward entrepreneurs and founders and assume you have some room for trial and error.

Retirees won't want to copy her playbook literally; just be open to opportunities. And if you haven't sat down with a financial advisor in some time, this can be a good conversation starter. Ask about real estate investing, family business plans, and even your "numbers" – just be open and honest with where you're at in your retirement plan, so you get good advice from the consultation.