Can I retire at age 40 with 12,400,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $12,400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.2%
1 years$1,023,980$1,014,859$1,005,960$997,275$988,793$955,994
2 years$506,921$497,480$488,330$479,459$470,854$438,127
3 years$334,590$325,109$315,982$307,194$298,729$267,103
4 years$248,442$238,989$229,954$221,316$213,056$182,772
5 years$196,766$187,371$178,454$169,992$161,962$133,101
6 years$162,327$153,002$144,217$135,944$128,155$100,740
7 years$137,738$128,491$119,845$111,767$104,224$78,252
8 years$119,304$110,140$101,638$93,759$86,464$61,916
9 years$104,974$95,897$87,541$79,861$72,815$49,661
10 years$93,517$84,529$76,320$68,841$62,042$40,246
11 years$84,149$75,251$67,191$59,913$53,358$32,878
12 years$76,348$67,541$59,630$52,551$46,239$27,029
13 years$69,752$61,037$53,276$46,395$40,322$22,333
14 years$64,103$55,481$47,869$41,184$35,346$18,528
15 years$59,212$50,683$43,219$36,729$31,121$15,422
16 years$54,937$46,501$39,184$32,887$27,505$12,872
17 years$51,168$42,826$35,656$29,549$24,388$10,767
18 years$47,822$39,573$32,549$26,629$21,684$9,023
19 years$44,832$36,676$29,797$24,062$19,328$7,574
20 years$42,144$34,081$27,347$21,793$17,264$6,365
21 years$39,715$31,745$25,154$19,778$15,449$5,355
22 years$37,510$29,633$23,183$17,983$13,848$4,509
23 years$35,499$27,715$21,405$16,377$12,431$3,799
24 years$33,659$25,967$19,796$14,937$11,173$3,204
25 years$31,969$24,369$18,335$13,641$10,054$2,703
26 years$30,411$22,903$17,005$12,473$9,056$2,281
27 years$28,972$21,554$15,791$11,417$8,165$1,926
28 years$27,637$20,310$14,680$10,460$7,368$1,627
29 years$26,397$19,160$13,661$9,592$6,653$1,374
30 years$25,241$18,095$12,724$8,803$6,011$1,161
31 years$24,162$17,106$11,863$8,085$5,435$981
32 years$23,153$16,186$11,068$7,431$4,916$830
33 years$22,207$15,328$10,334$6,833$4,449$701
34 years$21,318$14,527$9,656$6,287$4,028$593
35 years$20,482$13,779$9,027$5,787$3,648$501
36 years$19,694$13,078$8,445$5,330$3,306$424
37 years$18,951$12,421$7,904$4,911$2,996$359
38 years$18,248$11,805$7,402$4,527$2,716$303
39 years$17,583$11,225$6,935$4,174$2,463$256
40 years$16,953$10,680$6,500$3,850$2,234$217
41 years$16,355$10,166$6,095$3,552$2,027$184
42 years$15,787$9,682$5,717$3,278$1,839$155
43 years$15,247$9,225$5,365$3,026$1,669$131
44 years$14,733$8,793$5,036$2,794$1,515$111
45 years$14,243$8,385$4,729$2,580$1,375$94
46 years$13,776$7,999$4,441$2,383$1,249$79
47 years$13,330$7,634$4,172$2,202$1,134$67
48 years$12,904$7,287$3,921$2,035$1,030$57
49 years$12,497$6,959$3,685$1,880$935$48
50 years$12,107$6,648$3,465$1,738$850$41

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $12,400,000, adding $4,356 every year, while hoping to spend $56,352 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 82/7/11 Blend
39$12,400,000$12,400,000$12,400,000$12,400,000
40$13,669,293$13,012,093$12,819,893$14,764,620
41$15,003,603$13,589,728$13,189,402$16,060,628
42$16,472,124$14,193,778$13,569,400$17,475,369
43$18,088,485$14,825,478$13,960,180$19,026,967
44$19,867,706$15,486,122$14,362,041$20,729,121
45$21,826,335$16,177,064$14,775,292$22,596,921
46$23,982,606$16,899,725$15,200,249$24,646,983
47$26,356,611$17,655,591$15,637,236$26,897,611
48$28,970,489$18,446,219$16,086,588$29,368,963
49$31,848,637$19,273,241$16,548,646$32,083,243
50$35,017,934$20,138,366$17,023,763$35,064,906
51$38,508,004$21,043,387$17,512,299$38,340,894
52$42,351,485$21,990,177$18,014,626$41,940,881
53$46,584,345$22,980,704$18,531,124$45,897,556
54$51,246,216$24,017,026$19,062,184$50,246,929
55$56,380,771$25,101,302$19,608,209$55,028,668
56$62,036,135$26,235,792$20,169,610$60,286,474
57$68,265,339$27,422,864$20,746,810$66,068,491
58$75,126,820$28,665,000$21,340,244$72,427,756
59$82,684,972$29,964,801$21,950,358$79,422,700
60$91,010,755$31,324,992$22,577,611$87,117,698
61$100,182,363$32,748,428$23,222,472$95,583,672
62$110,285,963$34,238,100$23,885,424$104,898,762
63$121,416,507$35,797,143$24,566,962$115,149,058
64$133,678,631$37,428,843$25,267,595$126,429,409
65$147,187,637$39,136,642$25,987,845$138,844,322
66$162,070,585$40,924,147$26,728,247$152,508,940
67$178,467,494$42,795,139$27,489,352$167,550,128
68$196,532,657$44,753,579$28,271,724$184,107,668
69$216,436,103$46,803,620$29,075,942$202,335,576
70$238,365,200$48,949,611$29,902,600$222,403,552
71$262,526,421$51,196,114$30,752,309$244,498,580
72$289,147,299$53,547,906$31,625,694$268,826,687
73$318,478,567$56,009,996$32,523,398$295,614,889
74$350,796,528$58,587,634$33,446,079$325,113,325
75$386,405,666$61,286,319$34,394,414$357,597,619
76$425,641,514$64,111,819$35,369,098$393,371,476
77$468,873,826$67,070,177$36,370,841$432,769,546
78$516,510,066$70,167,725$37,400,374$476,160,577
79$568,999,253$73,411,104$38,458,446$523,950,893
80$626,836,199$76,807,270$39,545,826$576,588,228
81$690,566,183$80,363,518$40,663,303$634,565,941
82$760,790,095$84,087,491$41,811,685$698,427,674
83$838,170,110$87,987,204$42,991,802$768,772,480
84$923,435,938$92,071,054$44,204,504$846,260,467
85$1,017,391,715$96,347,846$45,450,665$931,619,029
86$1,120,923,587$100,826,808$46,731,180$1,025,649,707
87$1,235,008,085$105,517,614$48,046,967$1,129,235,746
88$1,360,721,336$110,430,403$49,398,966$1,243,350,430
89$1,499,249,224$115,575,805$50,788,144$1,369,066,263
90$1,651,898,589$120,964,963$52,215,491$1,507,565,088
91$1,820,109,556$126,609,557$53,682,020$1,660,149,235
92$2,005,469,136$132,521,831$55,188,774$1,828,253,808
93$2,209,726,209$138,714,622$56,736,819$2,013,460,228
94$2,434,808,028$145,201,384$58,327,248$2,217,511,155
95$2,682,838,420$151,996,225$59,961,184$2,442,326,924
96$2,956,157,832$159,113,933$61,639,776$2,690,023,676
97$3,257,345,424$166,570,009$63,364,203$2,962,933,317
98$3,589,243,426$174,380,708$65,135,671$3,263,625,530
99$3,954,983,959$182,563,067$66,955,421$3,594,932,018
100$4,358,018,615$191,134,949$68,824,719$3,959,973,235