Shark Tank’s Kevin O’Leary reveals EXACTLY how much of your salary you should be putting into a 401(K) each year – and how you can end up with over one and a half MILLION in retirement

Shark Tank’s Kevin O’Leary revealed how much of your paycheck you should invest in your 401(K) each year for a comfortable retirement.

According to O’Leary, the average American with a salary of about $60,000 a year would save 15 percent of his income in retirement.

“The number is 15 percent,” he said during an appearance on Good morning America is swimming with sharks.

And for those who think they don’t have enough cash, O’Leary had a message: “Stop buying all that crap you don’t need.” You have to adjust your lifestyle so that you put fifteen percent aside.’

The Canadian investor, also known as Mr Wonderful, gave the advice ahead of the premiere of the fifteenth season of the hit show Shark Tank, which airs tonight.

During the segment, a viewer asked whether he should prioritize paying off his student loans or saving for retirement.

‘The amazing thing is that I always said pay your loans first, but I learned something from my students. You have to do both: pay off your loans and invest some of your income every year,” O’Leary said.

‘That’s the only way to have the discipline to do this every month. This is how you reach retirement,” he added.

And to organize these savings, the investor encouraged the use of new financial planning apps.

He said that if an American with an average salary of $60,000 saves 15 percent of his income, he will end up with ‘one and a half million in the bank after a career.’

“Because it correlates with market returns of 6 to 8 percent,” he added. ‘You have to invest at least 15 percent.’

The Canadian investor, also known as Mr Wonderful, gave the advice ahead of the premiere of the 15th season of the hit series Shark Tank, which airs tonight.

According to NerdWallet’s retirement calculatorIf a 30-year-old with no savings were to put 15 percent of a $60,000 pretax salary into a 401(K) plan, that would leave him with more than $1.9 million at the average retirement age of 67. deliver.

This also assumes a salary increase of 2 percent per year, an average annual inflation of 3 percent and a life expectancy of 95 years.

A 401(K) is a private plan to which both an individual and their employer contribute – and is typically responsible for the majority of a retiree’s income.

The current contribution limit is $22,500 per year – and consultancy Mercer predicts the limit will rise to $23,000 by 2024, in line with the cost of living.

Consulting firm Mercer expects next year’s contribution limit to be $23,000 – up from $22,500 this year

O’Leary’s comments come from a recent study by Bank rate found that more than half of American workers felt they were not meeting their retirement goals.

About 56 percent of U.S. workers say they feel like they’re behind on their retirement savings — and 37 percent say they feel “significantly behind.”

The research shows that older employees often feel this way.

Nearly 70 percent of workers aged 43 to 58, and 60 percent of workers aged 59 to 77, said they felt left behind.

By comparison, fewer than 50 percent of people aged 42 or younger had these concerns.