What if retirement didn’t require millions, spreadsheets, or your late morning sacrifices for 40 years? What if you need $500,000 and a little patience?
That claim is the “Shark Tank” star Kevin O’Leary He shared in a 2023 LinkedIn post. “It’s all about lifestyle. How much do you need to live happily?” he wrote, attaching a short video clip that didn’t leave much room for interpretation. “You can live on half a million dollars in the bank and do something else to make money,” O’Leary said, casually pitching a plan that sounds more like a financial unicorn than a retirement strategy.
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O’Leary’s formula is based on a simple premise: earn interest, spend little, never touch principal. He claims that by carefully investing in fixed income products, it is possible to earn around 5% annually with “very little risk”. That works out to $25,000 per year – not lucrative, but not unaffordable either.
And for those willing to stomach a little more market chaos, he says you can aim higher. “If you are willing to ride the volatility, you can make 8.5 to 9% even in equities,” he said. That could mean as much as $45,000 a year. But it also means watching your portfolio swing like a soap opera plotline — dramatic, unpredictable, and sometimes painful.
And while O’Leary loves talking about what you can do, he’s even more fired up about what you shouldn’t.
“Don’t invest in your brother’s restaurant or bowling alley or bar,” he warned. “Or all that other crap. You’ll lose your money on that.”
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What math really looks like
Check the numbers – sort of – but only in very specific situations.
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A 5% return on $500,000 gives you an interest income of $25,000 per year.
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That comes to over $2,000 per month, pre-tax
That’s enough to live in a low-cost area, assuming your house is paid off, you have no debt, and you’re not in the habit of splurging on new cars or surprise vacation packages. It’s a simple life – but not bad if you plan accordingly.
Who really has this kind of money?
The real kicker? Most Americans aren’t even close to this benchmark, let alone deciding what kind of bonds to invest in.
The latest Federal Reserve data puts average retirement savings at around $87,000. In older households, that number jumps to about $130,000 to $200,000 — still a long way from O’Leary’s suggested goal. Social Security has become a lifeline for many, with limited savings to fill the gaps.
Polls show that Americans believe they need more to feel safe. A 2025 Bankrate survey found:
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14% believe they need $250,000 or less
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51% believe they need $500,000 or more
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34% say $1 million or more
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18% are aiming for $2 million or more
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7% think they need $5 million
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28% admitted that they did not know
Meanwhile, Northwestern Mutual’s Annual Planning and Progress Study found the average goal for a “comfortable” retirement at $1.26 million — double the amount O’Leary suggested.
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More lifestyle than luxury
To be fair, O’Leary doesn’t promise beachside cocktails or five-star cruises. Painting a picture of what’s possible if you dial back expectations and dial down lifestyle creep. This means owning your home, avoiding debt, avoiding expensive cities, and treating your portfolio like a swan that lays a typical golden egg—not a Vegas slot machine.
It’s not the kind of advice that comes with confetti and applause, but for someone with discipline, it’s a way to get out of the rat race without needing seven figures in the bank.
So, is O’Leary right?
maybe If you have $500,000, a paid-off house, no expensive habits, and the self-control of a monk, you might be able to pull it off. But if your brother’s restaurant is looking for investors, remember his next piece of advice — and walk the other way.
Whether your bottom line is $500,000 or $5 million, the most important thing is that your numbers match your needs. A financial advisor can help you be realistic about what looks comfortable to you—and help you avoid turning your retirement planning into “all that other crap.”
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The article ‘Shark Tank’ Star Kevin O’Leary Says You Can Retire Forever With Only $500K In The Bank – ‘Do Nothing Else’ And Live Comfortably From Interest originally appeared on Benzinga.com.
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