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%13.9%
1 years$1,032,238$1,023,044$1,014,073$1,005,317$996,768$980,658
2 years$511,009$501,492$492,268$483,326$474,651$458,466
3 years$337,289$327,731$318,530$309,671$301,138$285,380
4 years$250,446$240,917$231,808$223,101$214,774$199,565
5 years$198,353$188,882$179,893$171,363$163,268$148,652
6 years$163,636$154,236$145,380$137,040$129,188$115,182
7 years$138,848$129,527$120,812$112,668$105,065$91,672
8 years$120,266$111,029$102,458$94,515$87,161$74,380
9 years$105,820$96,670$88,247$80,506$73,402$61,226
10 years$94,271$85,210$76,936$69,397$62,543$50,961
11 years$84,827$75,858$67,733$60,396$53,789$42,789
12 years$76,963$68,086$60,111$52,975$46,612$36,182
13 years$70,314$61,530$53,705$46,769$40,647$30,769
14 years$64,620$55,929$48,255$41,516$35,631$26,290
15 years$59,690$51,092$43,567$37,025$31,372$22,551
16 years$55,380$46,876$39,500$33,152$27,727$19,407
17 years$51,581$43,171$35,944$29,787$24,584$16,748
18 years$48,208$39,892$32,812$26,844$21,859$14,487
19 years$45,193$36,971$30,038$24,256$19,484$12,556
20 years$42,484$34,356$27,567$21,968$17,403$10,901
21 years$40,035$32,001$25,356$19,938$15,574$9,478
22 years$37,812$29,872$23,370$18,128$13,960$8,252
23 years$35,786$27,938$21,578$16,509$12,531$7,191
24 years$33,931$26,176$19,956$15,058$11,263$6,273
25 years$32,227$24,565$18,483$13,752$10,135$5,477
26 years$30,657$23,087$17,142$12,574$9,129$4,785
27 years$29,205$21,728$15,918$11,509$8,231$4,183
28 years$27,860$20,474$14,798$10,545$7,427$3,659
29 years$26,609$19,315$13,771$9,670$6,706$3,202
30 years$25,445$18,241$12,827$8,874$6,060$2,803
31 years$24,357$17,244$11,958$8,150$5,478$2,455
32 years$23,340$16,316$11,157$7,490$4,956$2,151
33 years$22,386$15,452$10,418$6,888$4,485$1,885
34 years$21,490$14,645$9,734$6,338$4,061$1,652
35 years$20,647$13,890$9,100$5,834$3,678$1,448
36 years$19,853$13,184$8,513$5,373$3,332$1,270
37 years$19,103$12,522$7,968$4,951$3,020$1,113
38 years$18,395$11,900$7,462$4,563$2,738$977
39 years$17,725$11,316$6,991$4,207$2,483$857
40 years$17,089$10,766$6,552$3,881$2,252$752
41 years$16,487$10,248$6,144$3,580$2,043$659
42 years$15,914$9,760$5,763$3,304$1,854$579
43 years$15,370$9,299$5,408$3,050$1,683$508
44 years$14,852$8,864$5,077$2,816$1,527$446
45 years$14,358$8,453$4,767$2,601$1,387$391
46 years$13,887$8,064$4,477$2,403$1,259$343
47 years$13,438$7,695$4,206$2,220$1,143$301
48 years$13,008$7,346$3,953$2,051$1,038$264
49 years$12,597$7,015$3,715$1,896$943$232
50 years$12,204$6,701$3,493$1,752$856$204

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 $6,671 every year, while hoping to spend $39,849 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: 68/12/20 Blend
39$12,500,000$12,500,000$12,500,000$12,500,000
40$13,781,881$13,119,381$12,925,631$14,650,222
41$15,145,234$13,719,832$13,316,241$15,832,226
42$16,646,313$14,348,369$13,718,600$17,119,472
43$18,299,125$15,006,327$14,133,061$18,526,629
44$20,119,102$15,695,104$14,559,985$20,065,512
45$22,123,252$16,416,165$14,999,746$21,749,127
46$24,330,312$17,171,046$15,452,726$23,591,790
47$26,760,934$17,961,356$15,919,322$25,609,257
48$29,437,870$18,788,783$16,399,940$27,818,878
49$32,386,194$19,655,095$16,894,999$30,239,750
50$35,633,535$20,562,144$17,404,931$32,892,900
51$39,210,339$21,511,873$17,930,180$35,801,480
52$43,150,157$22,506,318$18,471,204$38,990,981
53$47,489,957$23,547,611$19,028,474$42,489,474
54$52,270,479$24,637,991$19,602,474$46,327,867
55$57,536,615$25,779,800$20,193,705$50,540,201
56$63,337,836$26,975,496$20,802,680$55,163,962
57$69,728,655$28,227,655$21,429,929$60,240,434
58$76,769,143$29,538,975$22,075,997$65,815,086
59$84,525,498$30,912,288$22,741,445$71,937,995
60$93,070,668$32,350,559$23,426,852$78,664,317
61$102,485,037$33,856,897$24,132,813$86,054,806
62$112,857,189$35,434,563$24,859,940$94,176,379
63$124,284,738$37,086,972$25,608,864$103,102,745
64$136,875,255$38,817,708$26,380,235$112,915,098
65$150,747,279$40,630,523$27,174,721$123,702,879
66$166,031,438$42,529,356$27,993,010$135,564,613
67$182,871,681$44,518,331$28,835,813$148,608,834
68$201,426,638$46,601,774$29,703,858$162,955,111
69$221,871,115$48,784,221$30,597,897$178,735,161
70$244,397,746$51,070,425$31,518,703$196,094,096
71$269,218,810$53,465,370$32,467,074$215,191,781
72$296,568,236$55,974,280$33,443,829$236,204,342
73$326,703,810$58,602,635$34,449,811$259,325,816
74$359,909,610$61,356,175$35,485,891$284,769,982
75$396,498,685$64,240,922$36,552,963$312,772,372
76$436,816,012$67,263,188$37,651,948$343,592,481
77$481,241,751$70,429,591$38,783,795$377,516,217
78$530,194,837$73,747,068$39,949,479$414,858,587
79$584,136,931$77,222,894$41,150,007$455,966,664
80$643,576,777$80,864,696$42,386,412$501,222,858
81$709,075,012$84,680,469$43,659,760$551,048,513
82$781,249,448$88,678,597$44,971,147$605,907,875
83$860,780,914$92,867,870$46,321,702$666,312,470
84$948,419,675$97,257,504$47,712,588$732,825,918
85$1,044,992,523$101,857,163$49,145,000$806,069,247
86$1,151,410,573$106,676,976$50,620,170$886,726,741
87$1,268,677,872$111,727,569$52,139,366$975,552,392
88$1,397,900,873$117,020,078$53,703,893$1,073,377,005
89$1,540,298,882$122,566,182$55,315,094$1,181,116,026
90$1,697,215,571$128,378,127$56,974,352$1,299,778,177
91$1,870,131,657$134,468,753$58,683,091$1,430,474,960
92$2,060,678,887$140,851,523$60,442,775$1,574,431,138
93$2,270,655,439$147,540,554$62,254,914$1,732,996,284
94$2,502,042,900$154,550,646$64,121,059$1,907,657,503
95$2,757,024,970$161,897,323$66,042,810$2,100,053,459
96$3,038,008,083$169,596,858$68,021,810$2,311,989,825
97$3,347,644,121$177,666,317$70,059,754$2,545,456,316
98$3,688,855,450$186,123,595$72,158,384$2,802,645,447
99$4,064,862,510$194,987,456$74,319,494$3,085,973,223
100$4,479,214,220$204,277,575$76,544,932$3,398,101,921