Shark Tank's Rashaun Williams outlines 3 wealth-building steps for Gen Z

Multimillionaire venture capitalist and Shark Tank guest judge Rashaun Williams has laid out a clear, actionable strategy for Gen Z to achieve millionaire status by retirement. According to Williams, the approach centers on three core principles: establishing an emergency fund, maximizing retirement account contributions, and maintaining a simple, low-risk investment strategy. He argues that these steps, if followed consistently, can lead young professionals to substantial wealth without the need for complex financial engineering [1].

The first step Williams emphasizes is the creation of an emergency fund. He recommends that individuals save at least three months’ worth of expenses to cover unforeseen events like job loss or medical emergencies. This approach helps avoid premature withdrawals from retirement accounts, which can derail long-term savings goals. For those with higher risk exposure, Williams acknowledges that some financial institutions, such as Wells Fargo, suggest saving up to six months’ worth of expenses [1].

The second step is to take full advantage of tax-advantaged retirement accounts, particularly 401(k)s and Roth IRAs. Williams encourages Gen Z to maximize contributions to these accounts, highlighting that consistent savings over time, especially when compounded, can lead to significant wealth accumulation. For 2025, the 401(k) contribution limit stands at $23,500, while Roth IRA contributions for those under 50 can reach up to $7,000 annually, subject to income limits [1]. Fellow Shark Tank investor Kevin O’Leary has echoed this sentiment, advising young investors to set aside 15% of their income for retirement. According to Fidelity, the average savings rate is about 14.1%, suggesting that this target is not out of reach. Williams also underscores the importance of employer-matching programs, which can provide immediate returns on contributions [1].

On the investment front, Williams advocates for simplicity. He favors the S&P 500 index, citing its long-term average return of about 10% over the past century. He argues that young investors don’t need to complicate their portfolios with international assets or bonds unless they are significantly older. By sticking with a low-cost, broad-market index, investors can benefit from steady growth without the added risk or complexity [1].

In addition to these steps, Williams offers a bonus piece of advice: entrepreneurship. Robert Herjavec, another Shark Tank investor, encourages Gen Z to pursue their own ventures as a path to wealth. Starting a business, he argues, offers the potential for exponential growth and financial independence, especially for those with a viable idea and willingness to take calculated risks [1].

Williams’ approach is grounded in practicality and long-term planning, offering Gen Z a realistic roadmap to millionaire status. By focusing on liquidity, tax efficiency, and low-risk investments, young professionals can build substantial wealth without the need for high-stakes financial gambles. His framework aligns with broader financial best practices while presenting a streamlined, accessible model tailored to today’s economic realities [1].

Source: [1] "Shark Tank" star Rashaun Williams says Gen Z can retire as millionaires if they follow these 3 steps (https://fortune.com/2025/07/30/shark-tank-shark-rashaun-williams-gen-z-can-retire-millionaires-3-simple-personal-finance-steps-investing/)