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%16.3%
1 years$1,032,238$1,023,044$1,014,073$1,005,317$996,768$971,095
2 years$511,009$501,492$492,268$483,326$474,651$448,957
3 years$337,289$327,731$318,530$309,671$301,138$276,227
4 years$250,446$240,917$231,808$223,101$214,774$190,837
5 years$198,353$188,882$179,893$171,363$163,268$140,371
6 years$163,636$154,236$145,380$137,040$129,188$107,354
7 years$138,848$129,527$120,812$112,668$105,065$84,295
8 years$120,266$111,029$102,458$94,515$87,161$67,447
9 years$105,820$96,670$88,247$80,506$73,402$54,726
10 years$94,271$85,210$76,936$69,397$62,543$44,881
11 years$84,827$75,858$67,733$60,396$53,789$37,116
12 years$76,963$68,086$60,111$52,975$46,612$30,898
13 years$70,314$61,530$53,705$46,769$40,647$25,860
14 years$64,620$55,929$48,255$41,516$35,631$21,738
15 years$59,690$51,092$43,567$37,025$31,372$18,338
16 years$55,380$46,876$39,500$33,152$27,727$15,516
17 years$51,581$43,171$35,944$29,787$24,584$13,161
18 years$48,208$39,892$32,812$26,844$21,859$11,186
19 years$45,193$36,971$30,038$24,256$19,484$9,524
20 years$42,484$34,356$27,567$21,968$17,403$8,120
21 years$40,035$32,001$25,356$19,938$15,574$6,933
22 years$37,812$29,872$23,370$18,128$13,960$5,925
23 years$35,786$27,938$21,578$16,509$12,531$5,068
24 years$33,931$26,176$19,956$15,058$11,263$4,338
25 years$32,227$24,565$18,483$13,752$10,135$3,716
26 years$30,657$23,087$17,142$12,574$9,129$3,184
27 years$29,205$21,728$15,918$11,509$8,231$2,730
28 years$27,860$20,474$14,798$10,545$7,427$2,342
29 years$26,609$19,315$13,771$9,670$6,706$2,010
30 years$25,445$18,241$12,827$8,874$6,060$1,725
31 years$24,357$17,244$11,958$8,150$5,478$1,481
32 years$23,340$16,316$11,157$7,490$4,956$1,272
33 years$22,386$15,452$10,418$6,888$4,485$1,092
34 years$21,490$14,645$9,734$6,338$4,061$938
35 years$20,647$13,890$9,100$5,834$3,678$806
36 years$19,853$13,184$8,513$5,373$3,332$693
37 years$19,103$12,522$7,968$4,951$3,020$595
38 years$18,395$11,900$7,462$4,563$2,738$511
39 years$17,725$11,316$6,991$4,207$2,483$440
40 years$17,089$10,766$6,552$3,881$2,252$378
41 years$16,487$10,248$6,144$3,580$2,043$325
42 years$15,914$9,760$5,763$3,304$1,854$279
43 years$15,370$9,299$5,408$3,050$1,683$240
44 years$14,852$8,864$5,077$2,816$1,527$206
45 years$14,358$8,453$4,767$2,601$1,387$177
46 years$13,887$8,064$4,477$2,403$1,259$152
47 years$13,438$7,695$4,206$2,220$1,143$131
48 years$13,008$7,346$3,953$2,051$1,038$113
49 years$12,597$7,015$3,715$1,896$943$97
50 years$12,204$6,701$3,493$1,752$856$83

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 $3,475 every year, while hoping to spend $33,095 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: 61/27/12 Blend
39$12,500,000$12,500,000$12,500,000$12,500,000
40$13,778,584$13,116,084$12,922,334$14,579,452
41$15,148,787$13,723,560$13,320,020$15,724,989
42$16,657,642$14,359,692$13,729,918$16,970,366
43$18,319,255$15,025,851$14,152,405$18,328,500
44$20,149,172$15,723,471$14,587,864$19,810,294
45$22,164,524$16,454,058$15,036,693$21,427,738
46$24,384,186$17,219,187$15,499,303$23,194,019
47$26,828,959$18,020,513$15,976,115$25,123,641
48$29,521,762$18,859,767$16,467,564$27,232,555
49$32,487,853$19,738,767$16,974,099$29,538,309
50$35,755,063$20,659,416$17,496,181$32,060,210
51$39,354,063$21,623,710$18,034,286$34,819,499
52$43,318,648$22,633,743$18,588,905$37,839,548
53$47,686,060$23,691,707$19,160,544$41,146,076
54$52,497,340$24,799,901$19,749,724$44,767,386
55$57,797,709$25,960,738$20,356,980$48,734,629
56$63,637,005$27,176,743$20,982,868$53,082,087
57$70,070,142$28,450,566$21,627,957$57,847,500
58$77,157,637$29,784,984$22,292,834$63,072,406
59$84,966,177$31,182,910$22,978,106$68,802,534
60$93,569,251$32,647,396$23,684,395$75,088,227
61$103,047,838$34,181,641$24,412,346$81,984,906
62$113,491,178$35,789,003$25,162,620$89,553,594
63$124,997,612$37,472,998$25,935,902$97,861,479
64$137,675,507$39,237,313$26,732,893$106,982,538
65$151,644,284$41,085,817$27,554,321$116,998,234
66$167,035,542$43,022,563$28,400,931$127,998,272
67$183,994,299$45,051,800$29,273,494$140,081,435
68$202,680,365$47,177,986$30,172,804$153,356,512
69$223,269,847$49,405,792$31,099,678$167,943,310
70$245,956,813$51,740,118$32,054,959$183,973,777
71$270,955,123$54,186,099$33,039,515$201,593,238
72$298,500,449$56,749,120$34,054,241$220,961,751
73$328,852,496$59,434,829$35,100,060$242,255,610
74$362,297,460$62,249,145$36,177,921$265,668,997
75$399,150,723$65,198,275$37,288,804$291,415,797
76$439,759,835$68,288,729$38,433,718$319,731,609
77$484,507,793$71,527,331$39,613,701$350,875,952
78$533,816,654$74,921,237$40,829,827$385,134,704
79$588,151,525$78,477,950$42,083,198$422,822,780
80$648,024,949$82,205,337$43,374,953$464,287,090
81$714,001,743$86,111,648$44,706,264$509,909,800
82$786,704,335$90,205,534$46,078,338$560,111,917
83$866,818,636$94,496,063$47,492,421$615,357,248
84$955,100,515$98,992,748$48,949,795$676,156,757
85$1,052,382,936$103,705,562$50,451,782$743,073,367
86$1,159,583,823$108,644,962$51,999,744$816,727,257
87$1,277,714,722$113,821,914$53,595,084$897,801,688
88$1,407,890,353$119,247,917$55,239,249$987,049,434
89$1,551,339,133$124,935,029$56,933,728$1,085,299,862
90$1,709,414,774$130,895,895$58,680,057$1,193,466,735
91$1,883,609,060$137,143,773$60,479,818$1,312,556,814
92$2,075,565,934$143,692,567$62,334,642$1,443,679,329
93$2,287,097,014$150,556,858$64,246,208$1,588,056,427
94$2,520,198,701$157,751,935$66,216,246$1,747,034,670
95$2,777,071,019$165,293,831$68,246,542$1,922,097,725
96$3,060,138,394$173,199,360$70,338,932$2,114,880,327
97$3,372,072,534$181,486,152$72,495,310$2,327,183,682
98$3,715,817,658$190,172,699$74,717,628$2,560,992,432
99$4,094,618,286$199,278,388$77,007,895$2,818,493,350
100$4,512,049,876$208,823,554$79,368,185$3,102,095,947