Kevin O’Leary in a car
Former Dragon’s Den panelist Kevin O’Leary delivered often harsh and blunt criticisms to entrepreneurs appearing on the show, backing everything from guitars and gloves, to storage solutions and even an unusual underwear line. But when it comes to teaching his own kids about money, his advice is surprisingly simple.
“What piece of advice do I give my kids over and over and over again about money? Don’t spend it, save it, invest it, let it compound — that’s the gift the market gives you,” O’Leary said in a recent YouTube video.
“Take 15% of all your paycheques, all your side hustle, any cash granny gives you, and put it in the market and just let it compound.” Saving 15% might not sound like a fast track to riches, but O’Leary says the payoff can be enormous — even on a modest income.
“If you make US$68,000 a year, the average salary, and you [save] your entire life — just 15% of your paycheck — you’ll end up a millionaire at retirement at 65.”
It’s a compelling idea. But how realistic is it?
Historically, the Canadian stock market has delivered strong long-term returns, making these savings seem possible. The benchmark S&P/TSX Composite Index’s average annual return has hovered around 9.6%, though of course, past performance is no guarantee of future results.
Still, O’Leary’s core message is timeless: The earlier and more consistently you invest, the better your chances of growth. “Best piece of advice I can give anybody,” he said. “Don’t buy stuff you don’t need — invest it instead.”
Here’s a look at a few simple ways to apply that advice in your own life.
O’Leary’s advice to “put it in the market and just let it compound” echoes the philosophy of legendary investor Warren Buffett. “In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated.
Our Canadian version, the S&P/TSX 60 Index, which focuses on large-cap Canadian stocks, offers market-cap weighted exposure to the large- and mid-cap Canadian market at a low price. Using Buffet’s approach, the S&P/TSX 60 Index gives investors exposure to 60 of the largest and most heavily traded stocks on the Toronto Stock Exchange (TSX), providing broad market exposure for instant diversification without the need for constant monitoring or active management.
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Still, setting aside 15% of every paycheque may feel out of reach for many. According to the latest data from Statistics Canada, Canada’s current personal savings rate is just 5.7%.
The good news is, you don’t have to start big. The beauty of this strategy is its accessibility — anyone, regardless of wealth, can take advantage of it.
Beyond stocks, real estate has long been a favorite asset class for building wealth — especially among income-focused investors.
While stock markets can swing wildly on headlines, high-quality properties often continue to generate stable rental income.
In fact, Buffett often uses real estate to illustrate what a productive, income-generating asset looks like. In 2022, he stated that if you offered him “1% of all the apartment houses in [the U.S.]” for US$25 billion, he would “write you a cheque.”
Why? Because regardless of what’s happening in the broader economy, people still need housing, and apartments can consistently produce rent money.
The best part? You don’t need to be a billionaire investor to get in the game. One way to invest in real estate is by purchasing rental properties and becoming a landlord. But for the average Canadian who wants to avoid the need for a capital deposit or the burden of property management, crowdfunding platforms make it easier to slice yourself up a piece of that pie.
Read more: Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
At the end of the day, everyone’s financial situation is different — from income levels and investment goals to debt obligations and risk tolerance. Some may be juggling student loans or credit card debt, which can make it difficult to jump straight into investing. Others might feel uneasy about market volatility
Building an investment portfolio from the ground up can feel overwhelming, especially if you’re unsure where to start amid a sea of unfamiliar information. What is best for anyone depends on your circumstances. Research, education and being clear and honest about your own situation is key when making these decisions. It’s wise to get professional advice from an accountant or financial advisor to help you understand what options are best for you, and how to begin.
1. YouTube: The money advice I drill into my kids (June 7, 2025)
2. Statistics Canada: Current and capital accounts – Households, Canada, quarterly (May 30, 2025)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.