“Shark Tank” star and multi-millionaire investor Kevin O’Leary is understood for his cut-and-dry, typically blunt strategy to giving monetary recommendation.

So when he instructed his YouTube viewers what he believes is the magic quantity folks want of their financial institution accounts to “survive the remainder of your life,” some followers had been shocked.

The quantity in query? $5 million.

“You possibly can maintain lots of people making six or seven p.c of $5 million,” O’Leary defined. “If you make that you must set that apart and you do not threat it.”

By setting apart the $5 million and never touching it, O’Leary suggests, the remainder of any revenue that you simply make can then be used as “threat capital” to take a position or spend on much less secure ventures with out having to fret about it affecting your total monetary safety.

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O’Leary’s idea relies on the concept that gaining curiosity on cash invested will produce passive revenue that may create a security internet for people and their households.

For instance, on the excessive finish of the investor’s estimate, a seven p.c annual curiosity on $5 million is $350,000 of passive revenue.

Nevertheless, followers within the remark part slammed O’Leary for being tone-deaf, with many saying they reside “paycheck to paycheck” and that the one individuals who can take his recommendation would want to “be rich first.” Others thought it was “affordable.”

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“No drawback. I am going to simply go to my cash tree within the yard,” one particular person joked.

“Everybody right here is lacking the purpose,” one other provided. “Do not take loopy dangers till you might have loads of reserves. That is it.”

O’Leary and his portfolio of corporations at O’Leary Ventures had been impacted by the collapse of Silicon Valley Financial institution earlier this yr, which pressured him to maneuver his monetary belongings into a number of totally different monetary establishments following the failure.

“Going ahead, I believe a variety of financial institution managers are going to say, ‘Wait a second, I’ve no threat … as a result of if something goes incorrect, so long as I keep throughout the baseball guidelines of banking, nothing can occur to me as a result of the Fed covers all my depositors,” he stated at the time.

O’Leary’s internet value as of Wednesday afternoon was an estimated $400 million.

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