Retirement Retirement Planning

Mark Cuban Says Your Retirement Isn't Safe Until You've Done These 6 Things

Cuban's low-key money rules could make or break your retirement.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated June 3, 2026

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Mark Cuban may be a celebrity, but his money advice lacks the flash and glamour you might expect from someone in his tax bracket. His long-standing retirement rules are actually very relatable, and most are things people can do even on a modest income.

With the average lifespan increasing and costs rising for basics like housing and medical care, many Americans fear outliving their retirement savings. That's a valid concern, and Cuban's rules for living smaller while making good investment choices could help you enjoy a stress-free retirement later.

Here's his advice for doing better financially and staying there.

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Pay off your credit card debt

It's common advice to get rid of high-interest consumer debt, and Cuban has shared similar strong words.

"If you use your credit cards, you don't want to be rich," he recently said on an episode of Dave Ramsey's radio show.

That's likely because card rates are almost always higher than what you can earn on retirement accounts, stock market investments, or even from home equity. So, those interest rates are a guaranteed negative return in retirement.

Someone in their 50s or 60s won't be able to save as much while paying interest, and fully-retired seniors will certainly feel the pain while on a fixed income. The best way to make your retirement safe in this case is to get aggressive about paying down debt until it's gone, with no new revolving balances.

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Build a safety net

Cuban also advises building a large cash cushion of around six months to a year of essential expenses. "If you don't like your job at some point or you get fired or you have to move or something goes wrong, you're going to need at least six months' income," he's said.

He expects you to build this before investing to be fully ready for retirement. Why? For one, this cash is an investment of sorts, even if it's not earning the same kind of returns that stocks, real estate, or investment accounts would give you. It's liquid and can be used in an emergency, so you don't go back to using credit cards to survive.

Another bonus to this strategy is that you'll be ready to jump on chances where cash is king, such as a once‑in‑a‑lifetime real estate deal or the chance to grow your business. For seniors, this cash reserve keeps you from raiding your retirement accounts during market downturns, triggering taxes or penalties before retirement age.

Switch to low-cost index funds

Rather than stock picking and paying high fees for investment products, Cuban recommends investing in simple, low-cost index or mutual funds. "I'd put [my money] into the cheapest Standard & Poor's mutual fund that I could find," he's shared. This is likely because it doesn't require you to follow any specific company or industry closely.

These baskets of stocks help you grow your funds with low costs and broad diversification. You can end up with more returns for yourself instead of giving them over as fees, which matters over decades of compounding. If most of your money is in high-fee, actively managed products you don't understand, your retirement may not be as secure as you think.

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Learn to live below your means

Cuban believes that wealth is built from what you don't spend, and that same wisdom applies as you enter retirement. Since your wage-earning days will be behind you, it's even more important to make the best use of your money and not overspend.

The business guru himself lived very cheaply early in his own life, sharing housing and even driving older cars. Even today, he recommends people "live like a college student" if needed, and this may be just as important as buckling down during your high-earning years. Lifestyle inflation — where you spend more because you earn more — can derail retirement investments and leave you needing more in retirement, the exact opposite of what you should be planning for.

Your retirement isn't safe until you spend less than you make and can put the difference into savings or investments.

Understand every financial product you own

It can be dangerous to blindly follow advisors into buying annuities, complex funds, and retirement products. Cuban has said the following: "If you don't fully understand the risks of an investment you are contemplating, it's ok to do nothing. ... Just put money in the bank."

And yet, it's very tempting to want to make more on your wages and have a healthier nest egg through "guaranteed" or high-ROI funds.

The problem is that some of these financial vehicles are very complex, aren't right for everyone, and are often presented as a sure-fire way to beat inflation and rising retirement costs. They also come with their own fees, risks, and rules that may not be clearly disclosed without asking.

If you're unsure of any of these details, your retirement may not be as secure as you think.

Go beyond your 401(k)

Cuban is a big fan of the 401(k) and says that those who start early could be a millionaires by the time they retire. This doesn't mean he sees the accounts as the only way to retire. In fact, he's called out how he would spend $100,000, and his surprising advice includes stocking up on toothpaste, if necessary.

This means there's more to a healthy retirement plan than the one you contribute to at work. While 401(k) plans make it easier to put money away and boost funds through an employer match, they aren't a complete plan for retirement.

There's a balance between saving money with no ROI and recklessly investing without a safety net, and good diversification will help with this. And while Cuban doesn't specifically address this, you should understand how you'll pull from and use your 401(k) funds, as spending them without a plan can be risky.

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Bottom line

Ultimately, Cuban's list for a secure retirement plan includes wise spending, proper savings, and asking a lot of questions about how your money works. His approach is very hands-on and may not be what you would expect from someone with his current level of wealth.

However, his advice also reflects the attitude that retirement security is more about disciplined behaviors than finding a magic stock or secret product. These behaviors, when learned and practiced well, can not only take you into retirement but also ensure you stay secure for the long haul.

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