Kevin O’Leary in a car <\/p>\n
Former Dragon\u2019s Den panelist Kevin O\u2019Leary delivered often harsh and blunt criticisms to entrepreneurs appearing on the show, backing everything from guitars and gloves, to storage solutions and even an unusual underwear line. But when it comes to teaching his own kids about money, his advice is surprisingly simple.<\/p>\n
\u201cWhat piece of advice do I give my kids over and over and over again about money? Don\u2019t spend it, save it, invest it, let it compound \u2014 that\u2019s the gift the market gives you,\u201d O\u2019Leary said in a recent YouTube video<\/a>.<\/p>\n \u201cTake 15% of all your paycheques, all your side hustle, any cash granny gives you, and put it in the market and just let it compound.\u201d Saving 15% might not sound like a fast track to riches, but O\u2019Leary says the payoff can be enormous \u2014 even on a modest income.<\/p>\n \u201cIf you make US$68,000 a year, the average salary, and you [save] your entire life \u2014 just 15% of your paycheck \u2014 you\u2019ll end up a millionaire at retirement at 65.\u201d<\/p>\n It\u2019s a compelling idea. But how realistic is it?<\/p>\n Historically, the Canadian stock market has delivered strong long-term returns, making these savings seem possible. The benchmark S&P\/TSX Composite Index\u2019s average annual return has hovered around 9.6%, though of course, past performance is no guarantee of future results.<\/p>\n Still, O\u2019Leary\u2019s core message is timeless: The earlier and more consistently you invest, the better your chances of growth. \u201cBest piece of advice I can give anybody,\u201d he said. \u201cDon\u2019t buy stuff you don\u2019t need \u2014 invest it instead.\u201d<\/p>\n Here\u2019s a look at a few simple ways to apply that advice in your own life.<\/p>\n O\u2019Leary\u2019s advice to \u201cput it in the market and just let it compound\u201d echoes the philosophy of legendary investor Warren Buffett. \u201cIn my view, for most people, the best thing to do is own the S&P 500 index fund,\u201d Buffett has famously stated.<\/p>\n Our Canadian version, the S&P\/TSX 60 Index, which focuses on large-cap Canadian stocks, offers market-cap weighted exposure to the large- and mid-cap Canadian market at a low price. Using Buffet\u2019s approach, the S&P\/TSX 60 Index gives investors exposure to 60 of the largest and most heavily traded stocks on the Toronto Stock Exchange (TSX), providing broad market exposure for instant diversification without the need for constant monitoring or active management.<\/p>\n Story Continues <\/p>\n Still, setting aside 15% of every paycheque may feel out of reach for many. According to the latest data from Statistics Canada<\/a>, Canada\u2019s current personal savings rate is just 5.7%.<\/p>\n The good news is, you don\u2019t have to start big. The beauty of this strategy is its accessibility \u2014 anyone, regardless of wealth, can take advantage of it.<\/p>\n Beyond stocks, real estate<\/a> has long been a favorite asset class for building wealth \u2014 especially among income-focused investors.<\/p>\n While stock markets can swing wildly on headlines, high-quality properties often continue to generate stable rental income.<\/p>\n 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 \u201c1% of all the apartment houses in [the U.S.]\u201d for US$25 billion, he would \u201cwrite you a cheque.\u201d<\/p>\n Why? Because regardless of what\u2019s happening in the broader economy, people still need housing, and apartments can consistently produce rent money.<\/p>\n The best part? You don\u2019t need to be a billionaire investor to get in the game. One way to invest in real estate is by purchasing rental properties and becoming a landlord. But for the average Canadian who wants to avoid the need for a capital deposit or the burden of property management, crowdfunding platforms<\/a> make it easier to slice yourself up a piece of that pie.<\/p>\n Read more: Here\u2019s how to retire in 10 short years<\/a> no matter where you live in Canada \u2014 even if you\u2019re starting with $0 savings<\/strong><\/p>\n At the end of the day, everyone\u2019s financial situation is different \u2014 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<\/p>\n Building an investment portfolio from the ground up can feel overwhelming, especially if you\u2019re unsure where to start amid a sea of unfamiliar information. What is best for anyone depends on your circumstances. Research, education and being clear and honest about your own situation is key when making these decisions. It\u2019s wise to get professional advice from an accountant or financial advisor<\/a> to help you understand what options are best for you, and how to begin.<\/p>\n 1. YouTube: <\/a>The money advice I drill into my kids (June 7, 2025)<\/p>\n