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For a generation bombarded with headlines about needing $1.5 million to retire, Kevin O’Leary’s number sounds suspiciously low.
When asked, “What amount of money would you say it takes for someone to be wealthy or at least comfortable?” Shark Tank’s Kevin O’Leary didn’t miss a beat.
“It depends on what you want out of life. It’s all about lifestyle,” he said in a 2023 YouTube short. “You can live off $500,000 in the bank and do nothing else to make money, because you can make off that about 5% in fixed income with very little risk. Or you can make 8.5 to 9% in equities too, if you’re willing to ride the volatility.”
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That’s roughly $25,000 to $45,000 a year in passive income, assuming you don’t touch the principal. Not enough for a Manhattan penthouse, but plenty for someone with low expenses and a paid-off home. The catch? You have to be smart about how you use it.
“Do not invest in your brother’s restaurant or a bowling alley or a bar or all that other crap,” O’Leary added. “You’ll lose your money.”
Translation: $500K can buy you freedom, but only if you resist blowing it on emotional decisions, high-risk side gigs, or someone else’s dream business with no track record.
For people who want to grow their money without swinging for the fences, options like Arrived let investors buy shares of single-family rental homes and collect income—without being a landlord, fixing toilets, or chasing tenants. It’s passive investing without betting everything on the stock market, and without handing your life savings to a cousin with a business plan on a napkin.
Still, the idea that $500,000 is enough to “do nothing else” doesn’t line up with how most Americans are planning—or not planning—for retirement. According to the 2025 Northwestern Mutual Planning & Progress Study, the average American believes they’ll need $1.26 million to retire comfortably. That’s down from the year before, but it still dwarfs O’Leary’s figure.
Worse, most people aren’t anywhere near either number. The Federal Reserve’s latest data shows that among households who even have retirement accounts, the median savings for those aged 55 to 64 is just $185,000. For those 65 to 74, it’s around $200,000. Households aged 35 to 44 hold a median of $45,000, and those under 35 barely crack $19,000.
Even the average across all age groups is misleading—it hovers around $333,000, but that number is heavily skewed by wealthier households. The more honest view comes from the overall median retirement balance, which sits at just $87,000. And that’s only among households with any retirement savings at all. Roughly half of Americans don’t have a retirement account to begin with.
So, yes—Kevin O’Leary’s math is technically sound. If you’ve got $500K sitting in the right place, and you’re not tempted by a food truck franchise or boutique hotel idea, you could coast on interest. But it takes discipline, strategy, and a lifestyle that doesn’t demand six figures a year.
Because if you treat that $500,000 like monopoly money, it’ll disappear faster than your cousin’s vape-themed bowling lounge.
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Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.
For those seeking fixed-income style returns without Wall Street complexity, Worthy Bonds offers SEC-qualified, interest-bearing bonds starting at just $10. Investors earn a fixed 7% annual return, with funds deployed to small U.S. businesses. The bonds are fully liquid, meaning you can cash out anytime, making them attractive for conservative investors looking for steady, passive income.
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For investors concerned about inflation or seeking portfolio protection, American Hartford Gold provides a simple way to buy and hold physical gold and silver within an IRA or direct delivery. With a minimum investment of $10,000, the platform caters to those looking to preserve wealth through precious metals while maintaining the option to diversify retirement accounts. It’s a favored choice for conservative investors who want tangible assets that historically hold value during uncertain markets.
This article 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 originally appeared on Benzinga.com
