Can I retire at age 40 with 1,880,000?

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 $1,880,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.3%
1 years$155,249$153,866$152,517$151,200$149,914$145,465
2 years$76,856$75,424$74,037$72,692$71,388$66,942
3 years$50,728$49,291$47,907$46,575$45,291$40,988
4 years$37,667$36,234$34,864$33,554$32,302$28,175
5 years$29,832$28,408$27,056$25,773$24,556$20,616
6 years$24,611$23,197$21,865$20,611$19,430$15,681
7 years$20,883$19,481$18,170$16,945$15,802$12,243
8 years$18,088$16,699$15,410$14,215$13,109$9,738
9 years$15,915$14,539$13,272$12,108$11,040$7,854
10 years$14,178$12,816$11,571$10,437$9,406$6,401
11 years$12,758$11,409$10,187$9,084$8,090$5,260
12 years$11,575$10,240$9,041$7,967$7,010$4,350
13 years$10,575$9,254$8,077$7,034$6,113$3,616
14 years$9,719$8,412$7,257$6,244$5,359$3,019
15 years$8,977$7,684$6,553$5,569$4,718$2,529
16 years$8,329$7,050$5,941$4,986$4,170$2,124
17 years$7,758$6,493$5,406$4,480$3,697$1,789
18 years$7,250$6,000$4,935$4,037$3,288$1,509
19 years$6,797$5,560$4,518$3,648$2,930$1,275
20 years$6,390$5,167$4,146$3,304$2,617$1,079
21 years$6,021$4,813$3,814$2,999$2,342$914
22 years$5,687$4,493$3,515$2,726$2,100$775
23 years$5,382$4,202$3,245$2,483$1,885$658
24 years$5,103$3,937$3,001$2,265$1,694$559
25 years$4,847$3,695$2,780$2,068$1,524$475
26 years$4,611$3,472$2,578$1,891$1,373$404
27 years$4,392$3,268$2,394$1,731$1,238$343
28 years$4,190$3,079$2,226$1,586$1,117$292
29 years$4,002$2,905$2,071$1,454$1,009$249
30 years$3,827$2,743$1,929$1,335$911$212
31 years$3,663$2,593$1,799$1,226$824$180
32 years$3,510$2,454$1,678$1,127$745$153
33 years$3,367$2,324$1,567$1,036$675$131
34 years$3,232$2,203$1,464$953$611$111
35 years$3,105$2,089$1,369$877$553$95
36 years$2,986$1,983$1,280$808$501$81
37 years$2,873$1,883$1,198$745$454$69
38 years$2,767$1,790$1,122$686$412$59
39 years$2,666$1,702$1,051$633$373$50
40 years$2,570$1,619$985$584$339$43
41 years$2,480$1,541$924$538$307$36
42 years$2,394$1,468$867$497$279$31
43 years$2,312$1,399$813$459$253$26
44 years$2,234$1,333$764$424$230$22
45 years$2,159$1,271$717$391$209$19
46 years$2,089$1,213$673$361$189$16
47 years$2,021$1,157$633$334$172$14
48 years$1,956$1,105$594$308$156$12
49 years$1,895$1,055$559$285$142$10
50 years$1,836$1,008$525$264$129$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,880,000, adding $4,031 every year, while hoping to spend $23,949 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: 62/22/16 Blend
39$1,880,000$1,880,000$1,880,000$1,880,000
40$2,075,918$1,976,278$1,947,138$2,196,084
41$2,262,180$2,047,634$1,986,886$2,348,739
42$2,466,638$2,121,684$2,027,162$2,512,246
43$2,691,123$2,198,534$2,067,960$2,690,171
44$2,937,651$2,278,296$2,109,270$2,883,915
45$3,208,445$2,361,086$2,151,084$3,095,022
46$3,505,950$2,447,023$2,193,389$3,325,190
47$3,832,864$2,536,234$2,236,174$3,576,288
48$4,192,156$2,628,849$2,279,426$3,850,374
49$4,587,099$2,725,006$2,323,130$4,149,711
50$5,021,297$2,824,845$2,367,269$4,476,794
51$5,498,722$2,928,515$2,411,825$4,834,368
52$6,023,750$3,036,171$2,456,780$5,225,453
53$6,601,202$3,147,973$2,502,111$5,653,379
54$7,236,390$3,264,088$2,547,797$6,121,808
55$7,935,165$3,384,692$2,593,812$6,634,777
56$8,703,976$3,509,967$2,640,129$7,196,728
57$9,549,928$3,640,101$2,686,719$7,812,554
58$10,480,849$3,775,294$2,733,552$8,487,645
59$11,505,364$3,915,752$2,780,594$9,227,936
60$12,632,976$4,061,689$2,827,810$10,039,964
61$13,874,158$4,213,330$2,875,160$10,930,929
62$15,240,448$4,370,909$2,922,603$11,908,763
63$16,744,560$4,534,670$2,970,097$12,982,201
64$18,400,503$4,704,867$3,017,593$14,160,866
65$20,223,714$4,881,765$3,065,043$15,455,358
66$22,231,204$5,065,642$3,112,392$16,877,354
67$24,441,714$5,256,786$3,159,585$18,439,717
68$26,875,899$5,455,499$3,206,561$20,156,619
69$29,556,516$5,662,094$3,253,256$22,043,671
70$32,508,643$5,876,899$3,299,603$24,118,071
71$35,759,915$6,100,256$3,345,529$26,398,767
72$39,340,780$6,332,523$3,390,958$28,906,634
73$43,284,795$6,574,072$3,435,811$31,664,670
74$47,628,933$6,825,291$3,480,000$34,698,215
75$52,413,940$7,086,586$3,523,435$38,035,184
76$57,684,714$7,358,380$3,566,022$41,706,338
77$63,490,730$7,641,116$3,607,659$45,745,563
78$69,886,508$7,935,255$3,648,240$50,190,201
79$76,932,127$8,241,277$3,687,651$55,081,391
80$84,693,791$8,559,686$3,725,773$60,464,464
81$93,244,453$8,891,007$3,762,483$66,389,365
82$102,664,508$9,235,787$3,797,647$72,911,127
83$113,042,546$9,594,599$3,831,126$80,090,387
84$124,476,191$9,968,040$3,862,774$87,993,961
85$137,073,022$10,356,733$3,892,437$96,695,469
86$150,951,588$10,761,330$3,919,951$106,276,033
87$166,242,527$11,182,512$3,945,146$116,825,038
88$183,089,798$11,620,989$3,967,842$128,440,978
89$201,652,044$12,077,503$3,987,850$141,232,383
90$222,104,081$12,552,830$4,004,972$155,318,842
91$244,638,557$13,047,779$4,018,999$170,832,133
92$269,467,766$13,563,195$4,029,711$187,917,461
93$296,825,650$14,099,964$4,036,878$206,734,832
94$326,970,012$14,659,008$4,040,259$227,460,560
95$360,184,945$15,241,291$4,039,600$250,288,931
96$396,783,517$15,847,822$4,034,634$275,434,034
97$437,110,724$16,479,654$4,025,083$303,131,781
98$481,546,748$17,137,887$4,010,654$333,642,133
99$530,510,545$17,823,672$3,991,039$367,251,552
100$584,463,798$18,538,210$3,965,917$404,275,705