It’s attainable to retire a millionaire on a median revenue, nevertheless it requires self-discipline. Whereas showing on an episode of “Good Morning America,” some time again, “Shark Tank” star Kevin O’Leary answered a query about how a lot to dedicate to retirement financial savings.

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A girl named Twyla from New York requested, “What percentage of my salary should I invest in a 401(k)? I’m not sure if I can comfortably hit the recommended amount with my other living expenses.” Right here’s what O’Leary suggested.

Contribute 15%, No Matter What

The “magic number” with regards to retirement contributions is 15% of your revenue, O’Leary mentioned. And whereas the lady posing the query mentioned she wasn’t certain she might contribute the advisable quantity, O’Leary posited that she might if she prioritized it.

“The number is 15%, and yes, you can [contribute that amount] by [stopping] buying all that crap you don’t need,” he mentioned. “You have to adjust your lifestyle to make sure you put 15% away.”

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The Common American Will Retire a Millionaire by Saving 15%

O’Leary’s recommendation will make somebody incomes the typical wage a millionaire by the point they retire.

“The average salary in America is $60,000,” he mentioned. “If you invest 15%, you’ll end up with $1.5 million in the bank after a career, because it compounds with market returns of 6% to 8%. And you can do it with anything — all these apps you’ve got that are available out there, fintech apps, you could download and do this. You must invest 15% — minimum.”

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Kevin O’Leary: Contribute This A lot To Your 401(okay) To Retire a Millionaire

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