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Shark Tank investor Kevin O'Leary shared a clip on Instagram on April 13, 2024, emphasizing the necessity of using medical school signing bonuses for immediate debt repayment. The video showed him during a phone interview, revealing his stance on managing student loans versus market investments, particularly for medical professionals starting their careers.
In the caption, he wrote that students should pay down their debt after they get a signing bonus.
"That spine surgeon's education is what earned the bonus, and the debt is the bill. Don’t kid yourself thinking the market’s going to bail you out at 8% returns — it won’t,” he said.
Shark Tank investor continued to say that "for the love of money," the students should "protect [their] financial identity, especially in a marriage." He added that while "romance fades, debt doesn't," as he noted that his advice won't just save their wallet but their relationship as well.
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The Shark Tank investor went on to say that currently the student loan interest rates range between 7.5% to 8%, making debt elimination a financial priority. O'Leary cautioned against using signing bonuses for vacations, watches, or other personal purchases, stressing that the bonus represents a return on educational investment.
Medical graduates should clear debt first, says Shark Tank's Kevin O'Leary
The conversation Kevin O'Leary shared on Instagram began with a person asking him about allocating medical school signing bonuses. The person on call asked him whether new graduates should split their funds between student loan payments and market investments.
The Shark Tank investor responded with direct guidance against market participation while carrying student debt. He said that students should "take 100% of advance to pay down the loans," adding that they wouldn't be able to build wealth while they were in debt.
O'Leary connected this advice to broader financial planning strategies for young professionals. The investor mentioned potential changes to student loan forgiveness programs under the Trump administration. He also suggested that graduates should plan their finances without relying on potential debt relief.
He emphasized the significance of early career financial decisions, particularly regarding bonus allocation and debt management strategies.
The discussion then went into the marital finance territory as O'Leary shared insights from his book Men, Women and Money. According to his research, financial stress contributes more significantly to marriage challenges than infidelity, with a 50% divorce rate occurring within seven years.
He noted that "great relationships are built on financial pillars," adding that if people were looking to get married, they needed to take care of the money. He said that they should "almost treat it like a child," and keep their own personal accounts without merging everything with their partner.
Shark Tank investor continued to say that while their partner could be a "great guy and all that," and they are married, they would want to keep their financial identity their entire life.
“You want to keep your financial identity your whole life because if you come go out of the system, you don't have your own credit card…and something could happen and you need to reestablish your life as an independent woman." O'Leary stated.
He outlined recommendations for couples, suggesting a structured system where partners maintain individual accounts while contributing fixed amounts to shared expenses.
The financial advice extended to practical monthly budgeting. O'Leary mentioned specific amounts for joint account contributions, suggesting each partner could deposit $2,500 monthly for shared expenses such as rent and utilities. He explained that this arrangement would allow couples to manage common financial obligations while preserving individual financial control.
Shark Tank investor's recent student debt advice aligns with his long-held financial philosophies. During a September 2020 conversation with YouTuber Graham Stephan, Kevin O'Leary stated that he didn't have any debt. He added that he had reached a point in his life where he "just [didn't] like debt," which was why he bought things for cash.
When finance creator Graham Stephan challenged his all-cash approach, the investor pointed to market downturns he witnessed. He warned about friends who faced bankruptcy due to excessive borrowing.
Fans can follow Shark Tank star on Instagram - @kevinolearytv.
