Yahoo Finance Kevin O’Leary Says You Need $5 Million in the Bank ‘To Survive’ — Here’s Why
How much money in the bank is enough to allow one to survive? For “Shark Tank” investor and entrepreneur Kevin O’Leary, the amount is $5 million — an opinion which sparked a lot of controversy.
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In an August 2023 YouTube video, O’Leary said that “you have to get to a place where you have $5 million in the bank.”
“Because you can survive the rest of your life no matter what happens — and your family — and you can take care of a lot of people, making 6% or 7% of $5 million,” said O’Leary. “When you make that, you have to set that aside and you don’t risk it. Then after that, you can start to take risk capital and put it to work.”
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Some Responses Show Disagreement With O’Leary, Others in Agreement
In response, one commenter wrote: “He said that with a straight face. How many of us know someone with 5 million in the bank. I guess we’re all doomed.”
Yet, other people seemed to agree with this premise, with one commenter writing: “For every 1,000 people that dismissed this, someone nodded, did their napkin math, and got to work on their business blueprint.”
So, how does O’Leary suggested one goes about having $5 million in the bank?
According to Benzinga, O’Leary recommended multiple strategies, such as building a business and focusing on cash flow.
He also warned against uncalculated risks and supported being selective with investments, Benzinga noted.
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Investing Early the Key to Success
Another piece of advice is to start investing early, saving 10% of your income and investing in bonds and dividend-paying stocks.
And as Benzinga further noted, when it comes to retirement planning, O’Leary recommended contributing a minimum of 15% of your salary into a 401(k) account.
Finally, he strongly advised to ask for what you’re worth, according to MoneyWise, which noted that O’Leary once said the wealthiest people are the ones who are most determined to get adequate compensation.
“That might not make them the easiest to deal with in real life, but he points out that they tend to ‘get rich because they’re not afraid to ask for what they want,'” MoneyWise reported.
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This article originally appeared on GOBankingRates.com: Kevin O’Leary Says You Need $5 Million in the Bank ‘To Survive’ — Here’s Why
