To 'Survive No Matter What,' Kevin O'Leary Says You Need $5M In The Bank – 'You Can Take Care Of A Lot Of People'

Kevin O’Leary, known as “Mr. Wonderful” on Shark Tank, is never shy about sharing his financial wisdom. In a series of interviews, he's laid out clear, no-nonsense advice about how much money you need to live comfortably and ensure long-term financial security. Here are the key takeaways from O’Leary’s perspective.

The $5 Million Milestone

O’Leary says the ultimate goal for financial security is to have $5 million saved. Why this specific amount? With $5 million in the bank, earning 6-7% annually can provide a steady income stream to support you and your family for life, regardless of what happens.

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"You can survive the rest of your life no matter what happens, and your family – you can take care of a lot of people," O’Leary explains. Once you reach that $5 million mark, O’Leary advises setting it aside and keeping it untouchable. After that, you're free to take risks with any additional money, investing it in opportunities that could grow your wealth further.

How Much Is Enough?

While $5 million may be the ultimate target, O’Leary recognizes that not everyone needs that much to live comfortably. The amount depends on your lifestyle.

According to O’Leary, with $500,000 in savings, you can generate 5% annual returns with minimal risk, enough to live modestly without needing additional income. If you’re comfortable with more risk, you could aim for returns of 8.5-9% by investing in equities.

However, he strongly advises against pouring your money into risky ventures like family-owned restaurants, bowling alleys or bars. "You'll lose your money on that," he warns.

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Save $100,000 by Age 33

For younger people wondering how to start building wealth, O’Leary suggests a concrete first goal: save $100,000 by the time you're 33. He acknowledges this might sound daunting but insists it's doable by saving 20% of your paycheck and investing it to grow at 5-7% annually.

O’Leary is willing to give you a break if you miss the target – you have until 35 to hit the milestone. Why 33? He calls it the tipping point – the age when saving becomes critical. “If you haven't saved anything by the time you're 33, you're way behind the 8-ball,” he says.

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Hitting that $100,000 goal by 33 sets the stage for bigger milestones. O’Leary recommends aiming for $500,000 by retirement at 60, breaking the decades into manageable saving and investing chunks.

Kevin O’Leary's advice concerns three key principles: save aggressively, invest wisely and avoid risky ventures. Whether your goal is $100,000, $500,000 or $5 million, the key is starting early and sticking to a plan.

"It's all about lifestyle," O’Leary says. Understanding your financial needs and making informed decisions now can ensure you're comfortable – and even thriving – later in life.

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