‘Shark Tank’ Star Kevin O’Leary Says These Are the 3 Things You Must Do Now for Financial Security
Many young adults — and even older adults — have failed to invest in their retirement, and Kevin O’Leary wants to change that.
“I had known for a couple of years now that a lot of people in their late 20s and early 30s don’t have any strategy to invest long-term. They don’t put anything aside,” he told GOBankingRates. “I realized how bad it was, actually, when lots of them were going through our PPP loans and filling records out. I found out that most of my employees only had two weeks of salary set aside. They had nothing set aside in the long-term.”
And they’re not alone. According to O’Leary, there are 100 million Americans who don’t have anything set aside in any investment accounts. If you’re one of the millions with no long-term savings, here’s what O’Leary said you need to do now to ensure your financial security.
1. Start Investing
Investing is the key to long-term security. But if you want to invest, you might not even know how to begin. Mr. Wonderful is trying to make it easier through his new investing app, Beanstox.
“I learned that the majority of my employees don’t know how to (invest),” he said. “They’re very early in their investment careers and they need something incredibly simple that gives them diversification. Beanstox is incredibly simple to use. You don’t have to know how to invest. You may have never invested before.”
Set a long-term (or short-term) investing goal in the app, and the Beanstox platform automatically creates a diversified portfolio for you based on your goal and your risk profile. You can connect a bank account to the app to seamlessly invest weekly or monthly, and the app does all the rest.
Take a Look: 26 Smartest Ways To Invest Your Money Right Now
2. Commit To Investing a Set Amount Every Week
O’Leary recommends young investors commit to putting $100 a week into an investment account or an app like Beanstox. He’s personally a fan of long-term investments in ETFs and advises against day trading.
“I try to put aside a little bit every week, and I put that into the market for the long-term because I know that for the last 100 years, the market has provided a 6-8% return on an annual basis,” he said. “The discipline aspect of it is that you give $100 a week and put it aside, and then it grows over time and you can watch it.”
3. Make Sure You and Your Partner Are Financially Aligned
You might not make an immediate connection between your financial security and your romantic life, but O’Leary said that not discussing finances can sabotage your long-term money goals — and your relationship.
“One thing that really matters is whether your significant other shares your long-term financial goals,” he said. “That’s the reason things fall apart. I learned that 50% of marriages fall apart after seven years, not because of infidelity — it’s because of financial stress. If, before you get married, you don’t express your goals and one outspends the other, it puts the union under terrible financial pressure with the debt, and that causes a breakdown eventually because you can’t live your life under that stress and the marriage falls apart.”
The “Shark Tank” investor encourages talking about finances as early as your third date.
“By the time you’re going out on your third date, you must be interested,” he said. “Why not bring it up? Say, ‘How do you deal with money?’ You want to find out if there’s bankruptcy in their family, if they’ve been bankrupt, if they overspend. You want to find those things out. Because if you’re going out on a fourth or fifth date and you want to start exploring the long-term, you want to make sure that it’s not going to go awry.”
More From GOBankingRates