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Kevin O’Leary has made numerous investment bets on Shark Tank, backing everything from kitchen gadgets to cat DNA testing. But when it comes to teaching his own kids about money, his advice is surprisingly simple.
“What piece of advice do I give my kids over and over and over again about money? Don’t spend it, save it, invest it, let it compound — that’s the gift the market gives you,” O’Leary said in a recent YouTube video.
“Take 15% of all your paychecks, all your side hustle, any cash granny gives you, and put it in the market and just let it compound.”
Saving 15% might not sound like a fast track to riches, but O’Leary says the payoff can be enormous — even on a modest income.
“If you make $68,000 a year, the average salary, and you do this your entire life — just 15% of your paycheck — you’ll end up a millionaire at retirement at 65.”
It’s a compelling idea. But how realistic is it?
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The outcome depends on key factors like when you start and what kind of return the market delivers. For example, CNBC estimates that if you begin saving 15% of your income at age 25 and earn a 4% annual return, you’d only need to make $67,459 a year to hit the $1 million mark by 65.
Start at 40, however, and you’ll need to earn more than double — $155,086 per year — to reach the same goal with a 4% return. But if you manage to get an 8% return, the required income drops to $83,563.
Historically, the U.S. stock market has delivered strong long-term returns. The benchmark S&P 500’s average annual return has hovered around 10%, though of course, past performance is no guarantee of future results.
Still, O’Leary’s core message is timeless: the earlier and more consistently you invest, the better your chances of growth.
“Best piece of advice I can give anybody,” he said. “Don’t buy stuff you don’t need — invest it instead.”
Here’s a look at a few simple ways to apply that advice in your own life.
Unlock the market’s gift — and ‘let it compound’
O’Leary’s advice to “put it in the market and just let it compound” echoes the philosophy of investing legend Warren Buffett.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated.
This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
Still, setting aside 15% of every paycheck may feel out of reach for many. According to the Bureau of Economic Analysis, the current personal savings rate in the U.S. is just 4.9%.
The good news? You don’t have to start big. The beauty of this strategy is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Building wealth while earning passive income
Beyond stocks, real estate has long been a favorite asset class for building wealth — especially among income-focused investors.
While stock markets can swing wildly on headlines, high-quality properties often continue to generate stable rental income.
In fact, Buffett often uses real estate to illustrate what a productive, income-generating asset looks like. In 2022, he stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”
Why? Because regardless of what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.
The best part? You don’t need to be a billionaire investor to get in the game.
One option is Homeshares, which gives access to the $30-plus trillion U.S. home equity market — a space that has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, accredited investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Talk to an expert
At the end of the day, everyone’s financial situation is different — from income levels and investment goals to debt obligations and risk tolerance. Some may be juggling student loans or credit card debt, which can make it difficult to jump straight into investing. Others might feel uneasy about market volatility.
If you’re unsure where to start, it might be the right time to get in touch with a financial advisor through Advisor.com.
Advisor.com is an online platform that matches you with vetted financial advisors suited to your unique needs. They can help tailor a strategy to your unique financial situation, whether you’re looking to grow wealth, diversify beyond stocks or plan for long-term financial security.
Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
