Kevin O'Leary Says $500,000 Is The Magic Number To Live Comfortably — 'You Can Live Off Half A Million Bucks And Do Nothing Else To Make Money'

Ask 10 people what it takes to be financially set for life, and most will throw out numbers with lots of commas: $5 million, $10 million, maybe more if they're feeling pessimistic about inflation and avocado prices. But Kevin O'Leary, entrepreneur and "Shark Tank" mainstay, says the real magic number isn't in the millions. It's $500,000.

In a 2023 YouTube short, O'Leary tackled the question head-on: How much do you need to live a comfortable or wealthy life? His answer? That depends on your lifestyle. But for many people, he says, half a million bucks in the bank can do the trick.

Don't Miss:

• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!
• Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.

"It's all about lifestyle," he says in the clip. "You can live off half a million bucks in the bank and do nothing else to make money."

Sounds too good to be true? It depends on what you do with that money and more importantly, what you don't do with it.

O'Leary explains if you're investing wisely, you could reasonably earn around 5% annually in fixed income with "very little risk." That's $25,000 a year without touching your principal — enough to cover modest living expenses, especially if you own your home and live in a low-cost area. Want to push that income a little higher? According to O'Leary, you could aim for 8.5% to 9% returns by mixing in equities, if you're willing to "ride the volatility."

Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. See which asset class has outpaced the S&P 500 (1995-2024) – and with near-zero correlation.

That added risk comes with potential reward but also potential stress. The market doesn't always cooperate, and while equities historically trend upward, there's no guarantee they'll behave when you need them to. If the idea of watching your portfolio dip during a downturn sends your blood pressure soaring, you might want to stick with the slower but steadier option.

But O'Leary isn't just handing out ideas — he's got strong feelings about what not to do.

"Do not invest in your brother's restaurant or a bowling alley or a bar," he warns. "Or all that other crap. You'll lose your money on that."

Point taken.

See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — invest pre-IPO from $0.60 per share now.

Still, his $500,000 plan isn't for everyone. Even at a 6% return, that's $30,000 a year — not exactly luxury living, especially with rising medical costs, rent, and a grocery bill that seems to laugh at budgets. 

Even with higher returns near 9%, you'd be working with about $45,000 a year — enough to get by, but probably not enough to quit your job unless your house is paid off, you have no debt, and you live a lean, frugal lifestyle. O'Leary did say it all comes down to your standard of living, but for most people, living comfortably on that setup would require a serious commitment to keeping expenses low.

O'Leary's advice is simple, direct, and depending on your lifestyle…surprisingly doable. But his real point might be this: the path to financial freedom isn't always paved with millions. Sometimes, it's about knowing what you want, avoiding bad investments, and letting compound interest do the heavy lifting.

Read Next:

• With shares starting at $1.52, this could be your chance to invest in the future of healthcare.
• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!

Image: Shutterstock