What if retirement didn’t require millions, spreadsheets, or sacrificing your morning latte for 40 years? What if all you needed was $500,000 and a little restraint?
That’s the claim of the “Shark Tank” star. Kevin O’Leary made in a LinkedIn post he shared back in 2023. “It’s all about lifestyle. How happy should you live?” he wrote, attaching a short video that didn’t leave much room for interpretation. “You can live off half a million dollars in the bank and do nothing 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 with careful investment in fixed income products, it is entirely possible to earn around 5% annually with what he calls “very little risk”. That works out to $25,000 a year – not flashy, but not poor either.
And for those willing to put up with a little more market chaos, he says you can aim higher. “You can earn 8.5 to 9 percent in stocks as well if you’re willing to deal with the volatility,” he said. That could mean up to $45,000 a year. But it also means seeing your portfolio swing like a soap opera plot—dramatic, unpredictable, and sometimes painful.
And while O’Leary likes to talk about what you can do, he’s even more excited about what you shouldn’t.
“Don’t invest in your brother’s restaurant or a bowling alley or a bar,” he warned. “Or all that other nonsense.” You will lose your money on this.
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What the math actually looks like
The numbers check – sort of – but only under very specific conditions.
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A 5% return on $500,000 gives you $25,000 a year in interest income
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That’s just over $2,000 a month, before taxes
That’s enough to live in a low-cost area, assuming your house is paid off, you’re debt-free, and you’re not in the habit of splurging on new cars or surprise vacation packages. It’s a simple life, but not a bad one if you plan accordingly.
Who actually has that kind of money?
The real kicker? Most Americans aren’t even close to that benchmark, let alone deciding what kind of bonds to invest in.
Recent Federal Reserve data puts average retirement savings at around $87,000. Among older households, that number rises to about $130,000 to $200,000 — still far from the target suggested by O’Leary. Social Security remains the lifeline for many, with limited savings to fill the gaps.
Polls show Americans believe they will need much more to feel safe. A 2025 survey found:
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14% believe they need $250,000 or less
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51% believe they will need $500,000 or more
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34% say $1 million or more
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18% target $2 million or more
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7% think they will need $5 million
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28% admitted that they had no idea
Meanwhile, Northwestern Mutual’s annual Planning and Progress Study found the average target for a “comfortable” retirement is $1.26 million — more than double the amount suggested by O’Leary.
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Lifestyle over luxury
To be fair, O’Leary doesn’t promise beachside cocktails or five-star cruises. He paints a picture of what’s possible if you lower your expectations and lower your lifestyle. That means owning your home, avoiding debt, ditching expensive cities, and treating your portfolio like a goose that lays modest golden eggs — not a Las 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 out of the rat race without needing seven figures in the bank.
So is O’Leary right?
May be. If you have $500,000, a paid-off house, no expensive habits, and the self-control of a monk, you might just make it. But if your brother’s restaurant is looking for investors, remember his other advice – and go the other way.
Whether the finish line is $500,000 or $5 million, what matters most is whether your numbers match your needs. A financial advisor can help you really understand what comfort looks like for you and help you avoid turning your retirement plan into “all that other crap.”
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This article ‘Shark Tank’ star Kevin O’Leary says you can retire forever with just $500,000 in the bank — ‘Do nothing else’ and live comfortably off the interest originally appeared on Benzinga.com
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