Kevin O'Leary: The Age You Should Have Your Debt Paid Off By

Kevin O'Leary explains why debt is evil and it's crucial to be debt-free by the time you hit this milestone.

For many people just beginning their careers, retirement seems too far away to start planning.

But in order to retire in your 60s, you need to get started down the right financial path early by saving and minimizing unnecessary debt, according to Kevin O'Leary, an investor on ABC's "Shark Tank" and personal finance author.

"People today don't spend enough time thinking about the future and what they've got to save for when they get old," O'Leary tells CNBC Make It. "It's not easier when you're older to make money — it's easy to make money when you're younger.

"You've got to save it while you're making it — that's the whole idea of financial freedom," says O'Leary.

That's because your spending, responsibilities and likelihood to take on debt only increase as you get older.

So start planning as early as possible for how to pay off that debt throughout your life, O'Leary suggests. That way, you can be financially secure by the time you retire.

When should you aim to have it all paid off? Age 45, O'Leary says.

"The reason I say 45 is the turning point, or in your 40s, is because think about a career: Most careers start in early 20s and end in the mid-60s," O'Leary says. "So, when you're 45 years old, the game is more than half over, and you better be out of debt, because you're going to use the rest of the innings in that game to accrue capital."

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Kevin O'Leary: The Age You Should Have Your Debt Paid Off By | CNBC Make It.

[jeromeleoterry]

I paid off my mortgage in April, at the age of 43. I’m now 100% debt free, I have a 6 month emergency fund. Now that extra debt payment is going into my retirement fund!

[brent]

I'm working Dave Ramsey plan and should be debt free including the house at 32. 42 sounds so late to finally get out of debt

[JesbaamSanchez]

23 yrs old rn, I attended a Community College (at first I didn't want to but oh boy it was such a great thing to do). Currently attending at a University and I have one year left with no debt. Going into the engineering profession and I've started to invest at the age of 20 with well over 30K (from Tesla and I'm still putting more in).

Any young individual out there, if you are starting college go to a CC the university will always be there. And also you, if you are active in academics and also do a lot of projects and clubs you will be the BIG fish of the pond.

[nickraja]

I am 32 and half of my debt has paid. this the best advice by Mr. Wonderful

[VerySelena]

This video and his book Cold Hard Truth really woke me up and helped me get out of debt. Thanks Mr. Wonderful

[samsungtv]

Great advice, we paid off our mortgage in our 30s best thing we ever did!

[devchatterjee]

what if you just don't have interest in buying a house? Does that make it even easier?

[realitybytez]

i totally disagree with o'leary on this one. we paid off our mortgage back in 2007, then the market tanked and has never recovered in my area. we ended up paying $100k more than the house is worth today. the only good thing about paying it off early was that we were able to take a bunch of the equity and use it to buy a couple of investment properties while the market was depressed and get back the money we lost with the appreciation on the investment properties. we recently sold one of them for a $230k gain that we rolled into a better place to live and turned our old home into a rental. so the best thing about paying off the mortgage early was that it allowed us to take on more debt. hmm . . . maybe i don't totally disagree with o'leary after all.

[carmikereid]

I'm debt free by 29 by working a jobs that paid no more that $20 an hour!

[GubeTube]

Hard to be dept free when ur paying 20k for post secondary education ( x6 years most likely) then once you finally graduate and get a reasonable priced home and havr kids, you gotta pay even more due to inflation (most likely 40k - 50k CAD/yr) for your kids education by the year 2050. Gotta love how much our universities cost and not getting financial aid because of being middle class.
P. S. Almost half of income gets rekt by taxes anyway so how are kids and their parents supposed to live dept free with schooling so expensive these days... Smh

[exopss]

Totally agree. Was debt free just before turning 40 (now we are 55 turning 56 this year) and well on our way to an early retirement.

[theninedivides]

Don't get into debt and if you do make sure its good debt and use it as leverage if not, don't even touch the flame because you will get burned if you dont know what you are doing

[CryptoChanakya]

I know its sound advice. But I want to retire by the time I am 42, not 65!

[w]

But Kevin, the fed says 0% rates are good for the economy and consumption drives production.

[tomcarrow]

Interesting that a lot of his deals on Shark Tank include some sort of debt.

[bartmilatz]

The personal development industry is so scattered. Ive reads hundreds of books on money and finance. Some say “get in debt” and “savers are losers” others, like Kevin say to get out of debt. I resonate more with getting out of debt. Debt just makes you a slave. My brother bought a house for €150, 000. What he doesn’t know is that with the mortgage and cost it will cost him more like €300, 000 in 30 years....

[mikenelson]

I became debt-free almost two years ago. I’m now 35 and stacking cash like it’s nothing

[nomadben]

24 years old, no debt, and growing savings! Oh yeah!

[jonathanbrotto]

People debt free by 42! Ha like that is going to happen. Have you heard about No Prime Mortgages. Buy a house with less than a 600 credit score. Then when you have the house let's refinance it cause house process go up. Good way to get that flat screen TV and SUV.

[CommandoMaster]

Debt is what makes the rich get richer. Getting out of debt is a struggle for the poor and middle class.