Retirement Retirement Planning

Mark Cuban’s Blunt Take on Why a 401(k) Alone Isn’t Enough

A 401(k) is only part of the plan.

By Catherine Collins

Edited by Laura Hohenstein

Updated Feb. 20, 2026

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Mark Cuban is a billionaire, a well-known entrepreneur, co-owner of the Dallas Mavericks, and a Shark Tank investor. He has invested in 85 companies through the popular TV show, and just recently stepped away from the show after 15 seasons.

He is known for his blunt financial advice, challenging conventional wisdom, and encouraging people to think for themselves. Here are some of Cuban's opinions on managing money and why you may need more than just 401(k) investments if you want to stretch your retirement dollars further.

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Cash is king, even before investing

Cuban is unique among business experts in that he believes cash is an investment, too, because having some allows you to jump on opportunities when they arise. Additionally, if you have a short-term crisis, having cash on hand helps you avoid going into credit card debt or withdrawing money from your 401(k).

Cuban even says that people should have a large emergency fund in place before investing for the future, preferably with six months' worth of income. That way, he explains, if you get laid off, you have a cash cushion available and won't incur 401(k) penalties from making a hardship withdrawal.

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The importance of managing spending

Even the biggest 401(k) balance or emergency cash cushion won't protect you from bad spending habits. You also need to know how to manage your money well and how to live on less than you earn. After all, many people are surprised to learn retirement is not as affordable as they expected.

Cuban is a huge proponent of budgeting and spending smartly. For example, he enjoys buying in bulk, saying it's an excellent return on investment. Although he's a billionaire, he doesn't waste money on fancy watches, chauffeurs, or expensive schools. He strongly encourages people, especially retirees, to learn how to live below their means.

Avoid high-interest debt

Cuban is also strongly opposed to carrying high-interest debt, such as credit card debt. In fact, he says the best investment is paying them off because it's an instant 20% return. He does acknowledge that credit cards are important for credit building, but only if people pay them off at the end of each month.

Plus, if you have credit card debt when you retire, that means you're using 401(k) withdrawal income to make payments on debt. That means less of your hard-earned money can go towards your day-to-day expenses.

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Saving is not the same as investing

Many people confuse saving with investing, thinking that if they save enough money, they'll be able to support their lifestyles well into retirement. However, Cuban says that saving isn't enough. He encourages people to actually invest their money.

There are many different ways to invest, and putting money into a 401(k) is one of them. However, many people invest in their 401(k)s automatically without checking the fees they're paying or whether their funds are performing well. Cuban encourages people to be aware of where they put their money and to take the time to make an investment strategy for the future.

Avoid managing money on autopilot

Cuban's broad financial philosophy is that people need to be involved in managing their money. Additionally, it's important for people to consider risk, watch market fluctuations, and live on less than they earn. While automatic investing can help people build their retirement savings, staying engaged and taking the time to understand a 401(k) account is just as important.

The risk of one retirement account

Ultimately, Cuban encourages people to be aware of their personal finances, to avoid debt, and to avoid relying on one retirement account for their retirement income. Building a solid retirement lifestyle will take more than blindly investing in a 401(k) at work. It will also require discipline, money management skills, and a smart strategy.

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Think for yourself

Ultimately, Cuban is a huge proponent of thinking for yourself. He encourages people to think outside the box and not to choose investments just because someone advised it. He says that even if you have a financial advisor you trust, don't be afraid to ask questions. Many financial products can be complex, and you have a right to understand what you're buying before making a big money decision.

Bottom line

Mark Cuban is a billionaire entrepreneur who is known for his blunt take on personal finance. He encourages people to question the status quo as well as pay close attention to their money. Overall, he says that saving in a 401(k) won't be enough for people to retire comfortably. They'll also need to learn how to control their spending, manage risk, and avoid expensive debt. After all, being ready for retirement means you understand exactly how much money you have, how much your lifestyle costs, and how well you're prepared for the unexpected.

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