Kevin O’Leary Says $500K in the Bank Is Enough to ‘Do Nothing Else to Make Money’—Says You Can Live ‘Comfortably’ Off the Interest Alone for Life
https://finance.yahoo.com/news/kevin-oleary-says-500k-bank-140014855.html
by lurker_bee
Kevin O’Leary Says $500K in the Bank Is Enough to ‘Do Nothing Else to Make Money’—Says You Can Live ‘Comfortably’ Off the Interest Alone for Life
https://finance.yahoo.com/news/kevin-oleary-says-500k-bank-140014855.html
by lurker_bee
46 comments
You need a million. But it’s a good point. Think how much billionaires make yearly in compounding interest.
I’d like to see his math. Half a million would be a great start though, because with compounding you could pretty much double it in seven years
Depends on what those $500k are invested in, and in what kinds of accounts
He’s right, especially if you have $500,000 and own your home outright in a place where you don’t need two expensive cars.
Comfortably in a shoe box down by the river? Is he really that stupid?
You only need $500k if you have your 500k house paid off, two vehicles, and are healthy and have all your family in a 50 mile radius. Oh, and be close to retirement age so that you can get SS before it gets canceled. And don’t plan on living past 80 or so. Yea, you can do it on 500k.
“do nothing else to make money” part is BS. You could probably coast all the way to retirement with some sporadic seasonal or part time work here and there, but no bank is paying enough interest on 500k to live comfortably. Even if you can find one still paying 5%, that’s barely enough to scrape by in most places. Meanwhile those living expenses are jumping up every year thanks to inflation. The real interest you earn will be more like a percent or two if you’re lucky. So much for your grand strategy to “live off the interest alone for the rest of your life”.
Considering short term interest rates are being lowered this is simply not true.
Isn’t it something like over 30% of Americans live paycheck to paycheck and have absolutely zero savings?
In some countries you can.
Risk free interest is 4%, and declining
Inflation is 3%, and rising
Taxes on interest will be around 1.5% for most people
???
Maths don’t check out.
The interest on 500K at 5% would only be 25k a year
$25k ? As if
Is he assuming people will claim unemployment benefits when they retire early?
Maybe he can buy another watch for $$500,000
He has a whole lot of them
I’d like to see this multi-millionaire do it. Go for it Kevin
After tax that’s like $2,200 per month assuming 7% annual return. Seems a little conservative for this economy. Double that at least.
Kevin O’Leary is a dipshit.
So…what im hearing is “Tax all income above 500k at 90%”
25,000 a year. That’s how much interest we are talking about.
Where in America can you live off that?!?!
$1,500/mo is enough to live on?
American healthcare alone falsifies this statement. Unless the assumption is that you will never get hurt, sick, or require medical care in any real facet.
Kevin O’Leary’s a fucking clown
That’s 30K a year GENEROUSLY.
Maybe if you were also retired and had a 401K and social security sure
O’Leary is pretty much a clueless dick
Not with my lifestyle
I mean once the house is paid off in a smaller city… yeah that’ll be quite awesome.
Kevin O’Leary is bad at math. It’s roughly $330 per month per $100k right now before taxes, so $1700 a month? That won’t even pay rent in most places.
What an idiot even if had a Bernie Maddoff investment (10% return, every year, no matter the economy or market) – you still would be earning only $50K a year – and every year that will be worth less due to inflation.
Do you think that jerk is living on $50K a year?
I don’t see him leading by example.
Hypocrite.
According to a 2022 survey, only 9% of Americans manage to save $500k for retirement, so that seems unrealistic. Is he planning to bankroll the other 91%?
He seems very disconnected from the average American in terms of wealth, and perhaps no one should be taking advice from him, or listening to him.
If that is the case, cap every one’s income at $500,000.00 dollars. This way everyone can save that $500,000.00 for retirement.
Risk-free interest is like 4%. That leaves you 20k/yr.
Even if your house is paid off, thats gonna be tight.
I don’t know who Kevin O’Leary is. But I know he doesn’t live in California.
he’s completely out of touch and another millionaire (billionaire?) who thinks tRump is awesome.
Since the SP500 goes up 20% per year guaranteed nowadays….it should be NO problem.
What a joke!
I mean whatever. Yes it is possible to live off of $25k per year but who wants to?
And he’s probably fine with someone with $500k doing nothing, but heaven forbid we do universal basic income and someone does that.
A billionaire from Canada was named in the epstein files. I w9nder who a famous Canadian billionaire is. Ummmmmmmm.
Please point to the bank that will kick out enough interest in which you can live on $500,000 deposit.
I am 56 and have been living 6 years now off of $350k after selling my house at a fat profit and I still have that principal. I simply invested that money in large- and mid-cap US tech companies and cash in when I need it.
Today I live on 20 acres in the forest near a snow-capped volcano, got a puppy, hike every morning on beautiful trails, eat at the local taco stand 5 days/week, and just bought a 2025 Mustang Mach E to go with my Jeep and my solar-powered van. I generally live frugally but I got drunk one night and bought $30,000 worth of silver which is now in a hole and worth twice as much! I hang beautiful art on my walls and give to charity sometimes…
I love my life. You do you and keep working if you want to afford “more” – but nothing is worth more to me than a treehouse and a puppy and free time. A NYC apt, a SF or Miami condo, a house in Atlanta with big white pillars on the porch? I don’t want those things.
And to head off some replies… I am not going to regret these years even if I have no savings at 70. A lot of things change over 15 years, disasters and opportunities happen all the time but they are out of my control and I am not going to worry. But TBH between Trump and climate change none of us have 20 years left.
Kevin O’Leary is a notorious scam artist and not a good investor.
Even at 4% apy the interest yield would be $20,000 per year. Maybe if you live in the lowest cost of living areas in other countries
What happens when the Fed insists on lowering the Fed funds rate to practically 0-2% over time? We can now get a little over 4%, but I expect that to change with Fed funds rate being lowered.
Standing, evergreen opinion of Kevin oLeary:
Would love to see this billionaire live on 20k a year lol
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