Many Americans worry about running out of money in retirement more than dying, with the average perceived retirement goal at $1.26 million. However, money expert Kevin O’Leary suggests you could retire with just $500,000 by carefully investing and aiming for a 5% return through high-yield savings accounts or index funds.

To achieve a $25,000 annual income through a 5% return on $500,000, it may seem modest compared to the U.S. median salary of $62,192. O’Leary advises that investing in riskier securities like an index fund could yield better returns, but inflation may impact long-term gains.

The S&P 500 index fund, which has historically returned 10.47%, could provide an annual income of $52,350 before inflation adjustments, making it a potentially more lucrative option than high-yield savings accounts. However, with inflation averaging 2.1% over the past 20 years, the actual annual income may be closer to $41,850, making it a challenging but viable retirement strategy.

Read more at Yahoo Finance: How Kevin O’Leary’s $500K Retirement Plan Works