Can I retire at age 40 with 12,500,000?

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 $12,500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$1,032,238$1,023,044$1,014,073$1,005,317$996,768$980,255
2 years$511,009$501,492$492,268$483,326$474,651$458,063
3 years$337,289$327,731$318,530$309,671$301,138$284,991
4 years$250,446$240,917$231,808$223,101$214,774$199,192
5 years$198,353$188,882$179,893$171,363$163,268$148,296
6 years$163,636$154,236$145,380$137,040$129,188$114,844
7 years$138,848$129,527$120,812$112,668$105,065$91,352
8 years$120,266$111,029$102,458$94,515$87,161$74,078
9 years$105,820$96,670$88,247$80,506$73,402$60,941
10 years$94,271$85,210$76,936$69,397$62,543$50,692
11 years$84,827$75,858$67,733$60,396$53,789$42,537
12 years$76,963$68,086$60,111$52,975$46,612$35,945
13 years$70,314$61,530$53,705$46,769$40,647$30,548
14 years$64,620$55,929$48,255$41,516$35,631$26,084
15 years$59,690$51,092$43,567$37,025$31,372$22,359
16 years$55,380$46,876$39,500$33,152$27,727$19,228
17 years$51,581$43,171$35,944$29,787$24,584$16,581
18 years$48,208$39,892$32,812$26,844$21,859$14,332
19 years$45,193$36,971$30,038$24,256$19,484$12,413
20 years$42,484$34,356$27,567$21,968$17,403$10,769
21 years$40,035$32,001$25,356$19,938$15,574$9,356
22 years$37,812$29,872$23,370$18,128$13,960$8,139
23 years$35,786$27,938$21,578$16,509$12,531$7,088
24 years$33,931$26,176$19,956$15,058$11,263$6,178
25 years$32,227$24,565$18,483$13,752$10,135$5,390
26 years$30,657$23,087$17,142$12,574$9,129$4,705
27 years$29,205$21,728$15,918$11,509$8,231$4,110
28 years$27,860$20,474$14,798$10,545$7,427$3,592
29 years$26,609$19,315$13,771$9,670$6,706$3,141
30 years$25,445$18,241$12,827$8,874$6,060$2,747
31 years$24,357$17,244$11,958$8,150$5,478$2,404
32 years$23,340$16,316$11,157$7,490$4,956$2,104
33 years$22,386$15,452$10,418$6,888$4,485$1,842
34 years$21,490$14,645$9,734$6,338$4,061$1,614
35 years$20,647$13,890$9,100$5,834$3,678$1,413
36 years$19,853$13,184$8,513$5,373$3,332$1,238
37 years$19,103$12,522$7,968$4,951$3,020$1,085
38 years$18,395$11,900$7,462$4,563$2,738$951
39 years$17,725$11,316$6,991$4,207$2,483$833
40 years$17,089$10,766$6,552$3,881$2,252$730
41 years$16,487$10,248$6,144$3,580$2,043$640
42 years$15,914$9,760$5,763$3,304$1,854$561
43 years$15,370$9,299$5,408$3,050$1,683$492
44 years$14,852$8,864$5,077$2,816$1,527$432
45 years$14,358$8,453$4,767$2,601$1,387$378
46 years$13,887$8,064$4,477$2,403$1,259$332
47 years$13,438$7,695$4,206$2,220$1,143$291
48 years$13,008$7,346$3,953$2,051$1,038$255
49 years$12,597$7,015$3,715$1,896$943$224
50 years$12,204$6,701$3,493$1,752$856$196

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $12,500,000, adding $3,130 every year, while hoping to spend $49,310 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: 62/8/30 Blend
39$12,500,000$12,500,000$12,500,000$12,500,000
40$13,778,229$13,115,729$12,921,979$14,520,719
41$15,131,142$13,705,934$13,302,399$15,616,864
42$16,620,401$14,323,406$13,693,912$16,807,719
43$18,259,859$14,969,431$14,096,835$18,107,134
44$20,064,783$15,645,351$14,511,498$19,525,756
45$22,051,996$16,352,579$14,938,238$21,075,301
46$24,240,034$17,092,589$15,377,403$22,768,665
47$26,649,321$17,866,930$15,829,350$24,620,044
48$29,302,365$18,677,223$16,294,446$26,645,067
49$32,223,967$19,525,167$16,773,070$28,860,937
50$35,441,453$20,412,542$17,265,610$31,286,597
51$38,984,939$21,341,214$17,772,465$33,942,901
52$42,887,606$22,313,137$18,294,047$36,852,813
53$47,186,021$23,330,360$18,830,776$40,041,620
54$51,920,476$24,395,028$19,383,088$43,537,166
55$57,135,373$25,509,393$19,951,430$47,370,115
56$62,879,638$26,675,810$20,536,259$51,574,235
57$69,207,186$27,896,749$21,138,049$56,186,718
58$76,177,429$29,174,801$21,757,284$61,248,525
59$83,855,837$30,512,676$22,394,464$66,804,769
60$92,314,555$31,913,220$23,050,101$72,905,140
61$101,633,083$33,379,411$23,724,722$79,604,370
62$111,899,027$34,914,372$24,418,870$86,962,746
63$123,208,928$36,521,376$25,133,103$95,046,675
64$135,669,169$38,203,854$25,867,992$103,929,308
65$149,396,982$39,965,401$26,624,128$113,691,229
66$164,521,554$41,809,784$27,402,115$124,421,205
67$181,185,242$43,740,954$28,202,576$136,217,027
68$199,544,926$45,763,049$29,026,151$149,186,427
69$219,773,479$47,880,410$29,873,498$163,448,087
70$242,061,406$50,097,582$30,745,292$179,132,760
71$266,618,639$52,419,333$31,642,229$196,384,494
72$293,676,520$54,850,660$32,565,023$215,361,993
73$323,489,981$57,396,799$33,514,408$236,240,105
74$356,339,958$60,063,240$34,491,139$259,211,470
75$392,536,033$62,855,738$35,495,991$284,488,333
76$432,419,363$65,780,325$36,529,762$312,304,538
77$476,365,900$68,843,322$37,593,271$342,917,735
78$524,789,936$72,051,360$38,687,360$376,611,804
79$578,148,018$75,411,384$39,812,895$413,699,527
80$636,943,253$78,930,679$40,970,764$454,525,535
81$701,730,063$82,616,880$42,161,882$499,469,554
82$773,119,412$86,477,991$43,387,189$548,949,986
83$851,784,582$90,522,402$44,647,649$603,427,844
84$938,467,519$94,758,909$45,944,255$663,411,103
85$1,033,985,844$99,196,734$47,278,026$729,459,486
86$1,139,240,569$103,845,543$48,650,009$802,189,735
87$1,255,224,604$108,715,471$50,061,281$882,281,431
88$1,383,032,127$113,817,143$51,512,947$970,483,397
89$1,523,868,918$119,161,697$53,006,145$1,067,620,755
90$1,679,063,739$124,760,811$54,542,042$1,174,602,712
91$1,850,080,877$130,626,728$56,121,837$1,292,431,128
92$2,038,533,971$136,772,282$57,746,763$1,422,209,965
93$2,246,201,244$143,210,932$59,418,088$1,565,155,698
94$2,475,042,288$149,956,784$61,137,110$1,722,608,788
95$2,727,216,566$157,024,632$62,905,169$1,896,046,323
96$3,005,103,800$164,429,983$64,723,636$2,087,095,950
97$3,311,326,433$172,189,097$66,593,923$2,297,551,232
98$3,648,774,389$180,319,022$68,517,479$2,529,388,560
99$4,020,632,354$188,837,633$70,495,793$2,784,785,802
100$4,430,409,847$197,763,669$72,530,394$3,066,142,848