Kevin O’Leary, entrepreneur and investor known from Shark Tank, advises Americans earning $68,000 annually to save 15% of their income for retirement. He claims that consistently investing this portion of earnings throughout one’s career can result in becoming a millionaire by age 65, according to fortune.com.
O’Leary shared his advice in an Instagram video earlier this year, emphasizing the importance of saving and investing over spending. He recommends putting 15% of every dollar earned, including paychecks, side hustles, or gifts, directly into the market and allowing it to compound over time. For someone earning $68,000, this equates to saving about $10,200 annually or $850 monthly.
This guidance aligns with national salary estimates, which place the average American income between $66,000 and $69,000 per year. By following O’Leary’s rule, workers can leverage compound interest to build wealth steadily. The approach underscores the value of disciplined investing amid economic challenges like inflation and rising living costs.
O’Leary’s rule offers a clear savings target for average earners aiming for financial security in retirement. The next milestone for many savers will be tracking their portfolio growth over the coming decades to see if this strategy leads to millionaire status by age 65, as projected by O’Leary’s calculations.