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

Use the below retirement simulation to view the chances of a successful retirement.
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%20%
1 years$1,032,238$1,023,044$1,014,073$1,005,317$996,768$956,842
2 years$511,009$501,492$492,268$483,326$474,651$434,928
3 years$337,289$327,731$318,530$309,671$301,138$262,869
4 years$250,446$240,917$231,808$223,101$214,774$178,249
5 years$198,353$188,882$179,893$171,363$163,268$128,580
6 years$163,636$154,236$145,380$137,040$129,188$96,359
7 years$138,848$129,527$120,812$112,668$105,065$74,082
8 years$120,266$111,029$102,458$94,515$87,161$57,994
9 years$105,820$96,670$88,247$80,506$73,402$46,004
10 years$94,271$85,210$76,936$69,397$62,543$36,860
11 years$84,827$75,858$67,733$60,396$53,789$29,761
12 years$76,963$68,086$60,111$52,975$46,612$24,175
13 years$70,314$61,530$53,705$46,769$40,647$19,730
14 years$64,620$55,929$48,255$41,516$35,631$16,164
15 years$59,690$51,092$43,567$37,025$31,372$13,283
16 years$55,380$46,876$39,500$33,152$27,727$10,943
17 years$51,581$43,171$35,944$29,787$24,584$9,033
18 years$48,208$39,892$32,812$26,844$21,859$7,469
19 years$45,193$36,971$30,038$24,256$19,484$6,184
20 years$42,484$34,356$27,567$21,968$17,403$5,125
21 years$40,035$32,001$25,356$19,938$15,574$4,252
22 years$37,812$29,872$23,370$18,128$13,960$3,530
23 years$35,786$27,938$21,578$16,509$12,531$2,933
24 years$33,931$26,176$19,956$15,058$11,263$2,438
25 years$32,227$24,565$18,483$13,752$10,135$2,027
26 years$30,657$23,087$17,142$12,574$9,129$1,686
27 years$29,205$21,728$15,918$11,509$8,231$1,403
28 years$27,860$20,474$14,798$10,545$7,427$1,168
29 years$26,609$19,315$13,771$9,670$6,706$972
30 years$25,445$18,241$12,827$8,874$6,060$810
31 years$24,357$17,244$11,958$8,150$5,478$674
32 years$23,340$16,316$11,157$7,490$4,956$561
33 years$22,386$15,452$10,418$6,888$4,485$468
34 years$21,490$14,645$9,734$6,338$4,061$390
35 years$20,647$13,890$9,100$5,834$3,678$325
36 years$19,853$13,184$8,513$5,373$3,332$270
37 years$19,103$12,522$7,968$4,951$3,020$225
38 years$18,395$11,900$7,462$4,563$2,738$188
39 years$17,725$11,316$6,991$4,207$2,483$156
40 years$17,089$10,766$6,552$3,881$2,252$130
41 years$16,487$10,248$6,144$3,580$2,043$109
42 years$15,914$9,760$5,763$3,304$1,854$90
43 years$15,370$9,299$5,408$3,050$1,683$75
44 years$14,852$8,864$5,077$2,816$1,527$63
45 years$14,358$8,453$4,767$2,601$1,387$52
46 years$13,887$8,064$4,477$2,403$1,259$44
47 years$13,438$7,695$4,206$2,220$1,143$36
48 years$13,008$7,346$3,953$2,051$1,038$30
49 years$12,597$7,015$3,715$1,896$943$25
50 years$12,204$6,701$3,493$1,752$856$21

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 $3,133 every year, while hoping to spend $46,202 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: 36/40/24 Blend
39$12,500,000$12,500,000$12,500,000$12,500,000
40$13,778,232$13,115,732$12,921,982$14,174,421
41$15,134,453$13,709,244$13,305,710$15,060,051
42$16,627,460$14,330,290$13,700,744$16,011,031
43$18,271,156$14,980,170$14,107,414$17,036,782
44$20,080,862$15,660,246$14,526,061$18,144,035
45$22,073,459$16,371,947$14,957,032$19,340,176
46$24,267,547$17,116,768$15,400,689$20,633,298
47$26,683,625$17,896,277$15,857,399$22,032,285
48$29,344,276$18,712,116$16,327,544$23,546,880
49$32,274,391$19,566,008$16,811,515$25,187,776
50$35,501,392$20,459,756$17,309,714$26,966,710
51$39,055,501$21,395,251$17,822,556$28,896,567
52$42,970,017$22,374,473$18,350,467$30,991,494
53$47,281,636$23,399,499$18,893,884$33,267,030
54$52,030,793$24,472,505$19,453,260$35,740,241
55$57,262,046$25,595,771$20,029,057$38,429,876
56$63,024,497$26,771,686$20,621,753$41,356,535
57$69,372,253$28,002,755$21,231,838$44,542,858
58$76,364,936$29,291,603$21,859,818$48,013,723
59$84,068,249$30,640,981$22,506,211$51,796,481
60$92,554,594$32,053,773$23,171,553$55,921,197
61$101,903,754$33,533,000$23,856,392$60,420,927
62$112,203,650$35,081,830$24,561,294$65,332,019
63$123,551,165$36,703,582$25,286,840$70,694,448
64$136,053,063$38,401,736$26,033,628$76,552,177
65$149,826,994$40,179,940$26,802,273$82,953,564
66$165,002,607$42,042,017$27,593,409$89,951,803
67$181,722,770$43,991,973$28,407,685$97,605,417
68$200,144,921$46,034,008$29,245,771$105,978,793
69$220,442,554$48,172,526$30,108,356$115,142,778
70$242,806,856$50,412,140$30,996,147$125,175,331
71$267,448,510$52,757,690$31,909,872$136,162,246
72$294,599,686$55,214,245$32,850,281$148,197,943
73$324,516,232$57,787,121$33,818,144$161,386,344
74$357,480,089$60,481,891$34,814,252$175,841,834
75$393,801,949$63,304,395$35,839,421$191,690,325
76$433,824,195$66,260,757$36,894,489$209,070,425
77$477,924,124$69,357,396$37,980,316$228,134,722
78$526,517,517$72,601,040$39,097,788$249,051,209
79$580,062,558$75,998,745$40,247,818$272,004,842
80$639,064,161$79,557,906$41,431,342$297,199,266
81$704,078,737$83,286,275$42,649,324$324,858,715
82$775,719,445$87,191,980$43,902,753$355,230,096
83$854,661,984$91,283,542$45,192,650$388,585,300
84$941,650,964$95,569,893$46,520,062$425,223,740
85$1,037,506,944$100,060,400$47,886,067$465,475,143
86$1,143,134,174$104,764,881$49,291,771$509,702,638
87$1,259,529,128$109,693,629$50,738,314$558,306,150
88$1,387,789,919$114,857,436$52,226,867$611,726,141
89$1,529,126,659$120,267,618$53,758,635$670,447,732
90$1,684,872,884$125,936,037$55,334,855$735,005,251
91$1,856,498,146$131,875,131$56,956,801$805,987,231
92$2,045,621,884$138,097,940$58,625,781$884,041,935
93$2,254,028,713$144,618,136$60,343,141$969,883,425
94$2,483,685,270$151,450,053$62,110,265$1,064,298,264
95$2,736,758,783$158,608,721$63,928,574$1,168,152,894
96$3,015,637,530$166,109,899$65,799,532$1,282,401,769
97$3,322,953,383$173,970,109$67,724,642$1,408,096,312
98$3,661,606,659$182,206,676$69,705,448$1,546,394,788
99$4,034,793,498$190,837,763$71,743,541$1,698,573,187
100$4,446,036,039$199,882,417$73,840,553$1,866,037,210