Dreams of a comfortable retirement feel increasingly out of reach for young people—especially as even boomers, who spent decades saving, are now being forced back into the workforce. For Gen Z, it’s easy to feel hopeless and turn to bad financial habits like doom spending as a coping mechanism.
But the possibility of Gen Z retiring as millionaires may not be as complicated as the generation thinks it is. With proper financial planning, Gen Z can easily have seven figures to their name, according to Rashaun Williams, a multimillionaire venture capitalist returning as a guest judge on Shark Tank this upcoming season.
The secret, he tells Fortune, relies on just following three simple steps: establishing an emergency fund, maxing out retirement accounts, and keeping investments simple.
The ‘Shark Tank’ investor’s 3 steps for Gen Z wanting to become millionaires: 1. Create an emergency fund
The path toward million-dollar wealth can’t begin without planning for the unexpected, such as a job loss or medical emergency. Williams says an emergency fund should start with saving up three months worth of expenses into your savings account.
“Make sure you have enough cash for a rainy day, so you’re not pulling from your 401(k) prematurely,” Williams tells Fortune.
For those who want to be a little extra careful—or are unlucky enough to have life throw wrenches their way—many financial institutions, like Wells Fargo, suggest that up to six months’ worth of expenses could be worth it.
2. Maxing out your 401(k) and Roth IRA
Saving money using tax-advantaged accounts, like a 401(k) or Roth IRA, remains one of the most efficient ways to grow your wealth. Williams says Gen Z should try to put as much money within their budgets into retirement accounts.
“If you just do that from 25 to 50 years old, you’re going to retire a millionaire,” Williams says. “…Just by maxing out your 401(k), it grows tax deferred, and it goes in tax-free. There’s no better return than to get your returns without taxes.”
The standard 401(k) limit for employee salary deferrals is about $23,500 in 2025. The maximum amount you can contribute each year to a Roth IRA is $7,000 for those under 50 (though your income must be below a certain adjusted income threshold).
Fidelity recommends individuals save at least 15% of their annual income for retirement—something that can be a tough ask for those Gen Z early in their career.
But, it’s a number that fellow Shark Tank star Kevin O’Leary has echoed: “Take 15% of your salary each week, or every two weeks when you get paid, and put it into an investment account, and never touch it until you turn 65,” O’Leary told Us Weekly in 2023. “That’s how you will retire a multimillionaire.”
In reality, the average savings rate is about 14.1%, according to Fidelity. Taking advantage of any employer match program is also important.
3. Keep investments simple
While there are many ways to invest money—including seemingly fun opportunities like individual stocks or cryptocurrencies—Williams encourages people to keep their choices simple. He specifically called out S&P 500 indexes as one of the best places to invest, with a long history of sustained growth. After all, it delivered an average return of about 10% over the last century, helping usher an unprecedented level of millionaires and billionaires.
“You don’t have to get cute, you don’t need international, you don’t need bonds. You’re not 90 years old. Just do S&P,” Williams tells Fortune.
4. A bonus tip for Gen Z wanting to become millionaires before retirement
For many young people, becoming a millionaire is more than just a retirement dream—it’s an aspiration they want to hit as soon as possible. And while for some, hitting financial goals will mean temporarily saying goodbye to expensive lattes or a vacation to Europe, one of the best ways to build wealth is to simply create your own venture.
“Start something that you can invest in, that you can grow, and start your own business,” said multimillionaire Shark Tank investor Robert Herjavec. “It’s the only path to wealth.”
