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If you've believed that you need a high six-figure salary to retire with millions, you may be surprised to hear what Kevin O'Leary has to say about it. The money guru disagrees with this generalization and argues that one simple habit can get the job done.
Of your cash, O'Leary says, "Don't spend it. Save it. Invest it. Let it compound." But what else does it take to retire with a million? Learn about the magic number that makes all the difference and how to start investing with even a modest budget.
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Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.
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O'Leary's magic number
If you set aside 15% of each and every paycheck, as well as side hustles, gifts, and bonuses, you are on the right track, says O'Leary. He recommends you take this allotment to put into low-cost index funds.
Does this mean that a $65,000 annual salary could turn into millions? The math checks out if you start early and stay consistent.
What the 15% rule does
It's not enough to plan to set aside 15%. You need to make the investment of it frictionless and automatic. We are not talking about putting it into a savings account with one transaction at the end of the month. We're talking automated transfers from your various pay sources to those diversified, low-cost index funds that track the stock market.
So, 15% of a $65,000 salary is $9,750 a year, or around $812 a month. This is before any side hustle income, freelance, work, or gifts (which should follow the same rule). The power of this method is in the consistency you build over the decades, not on the salary amount or big windfalls.
Why choose index funds?
Low-cost index funds, as O'Leary recommends, are a basket of stocks designed to mirror a market index like the S&P 500, but with little to no trading and low fees. Instead of picking individual stocks, you buy tiny pieces of hundreds of companies at once. This spreads risks across several industries and tracks with overall market performance.
Warren Buffett is also a fan, having said, "A very low‑cost index is going to beat a majority of the amateur‑managed money or professionally‑managed money." The long-term track record of the broad U.S. market indexes works well for this 15% approach and for regular investors, too.
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Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan.
That is exactly what The Definitive Guide to Retirement Income helps answer.1 <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn More Here ›
The actual market returns
There's more to this strategy than wishful thinking about the market. Even with ups and downs, the S&P 500 delivered unusually strong double‑digit annualized returns over the decade leading up to early 2026, with several big bull‑market years.
Even with more conservative return numbers of 8-10% a year, closer to O'Leary's averages, you'll see good movement of your portfolio.
How the numbers work out
You admittedly need a 40‑year plan and an annual return of around 9% to turn a $65,000 annual salary into millions. You'll end up with around $3.3 million when you retire, even though you've only contributed about $390,000 of your own money.
Note that 40 years is a long time, a full career history for some people. Earning $65,000 at age 20 isn't easy, but it's likely your income will rise later in life, which can help balance things out.
What it costs to wait
If you put this plan off until 35, you'll lose a good chunk of your nest egg. With the same $65,000 salary, investing the same 15%, with the same 9%, you'll only have $1.3 million. It's a loss of $2 million, even though you still contribute $292,500 of your own cash.
All things being equal, the price tag for waiting is huge. Think of how far that $2 million would go in retirement.
Rules to make it happen
It can be hard for some to spare 15%, especially when dealing with mortgages, student loans, and caring for a family. But many find the wiggle room with these two O'Leary-inspired rules:
Don't buy stuff you don't need. Be frugal when you can and only spend on what truly matters. Trimming non-essentials can free up cash in ways you've never considered.
Get out of debt. Higher-interest loans and credit cards earn you negative interest and can work against the 9% you would see from the markets. All the time you spend digging out of debt is time you could be watching that compounding interest at work for your benefit (not the credit card's).
Bottom line
The math is clear. Putting away 15% and letting the market work for you can help you build wealth in a consistent and relatively worry-free way. So, what happens if you can't part with that much cash?
Start small, with just 5% a month, especially if you need to get out of debt. This builds the habit and puts the processes in place, so when you do have more cash, it's easy to pivot. Even one automated transfer puts the power of compounding back into your hands.
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