Can I retire at age 40 with 1,950,000?

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 $1,950,000?

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$161,029$159,595$158,195$156,829$155,496$151,491
2 years$79,717$78,233$76,794$75,399$74,046$70,037
3 years$52,617$51,126$49,691$48,309$46,978$43,091
4 years$39,070$37,583$36,162$34,804$33,505$29,771
5 years$30,943$29,466$28,063$26,733$25,470$21,898
6 years$25,527$24,061$22,679$21,378$20,153$16,747
7 years$21,660$20,206$18,847$17,576$16,390$13,150
8 years$18,761$17,320$15,983$14,744$13,597$10,522
9 years$16,508$15,081$13,767$12,559$11,451$8,537
10 years$14,706$13,293$12,002$10,826$9,757$7,001
11 years$13,233$11,834$10,566$9,422$8,391$5,790
12 years$12,006$10,621$9,377$8,264$7,271$4,820
13 years$10,969$9,599$8,378$7,296$6,341$4,034
14 years$10,081$8,725$7,528$6,477$5,558$3,391
15 years$9,312$7,970$6,797$5,776$4,894$2,861
16 years$8,639$7,313$6,162$5,172$4,325$2,421
17 years$8,047$6,735$5,607$4,647$3,835$2,053
18 years$7,520$6,223$5,119$4,188$3,410$1,745
19 years$7,050$5,768$4,686$3,784$3,039$1,486
20 years$6,627$5,359$4,300$3,427$2,715$1,267
21 years$6,245$4,992$3,956$3,110$2,430$1,081
22 years$5,899$4,660$3,646$2,828$2,178$924
23 years$5,583$4,358$3,366$2,575$1,955$791
24 years$5,293$4,084$3,113$2,349$1,757$677
25 years$5,027$3,832$2,883$2,145$1,581$580
26 years$4,782$3,602$2,674$1,961$1,424$497
27 years$4,556$3,390$2,483$1,795$1,284$426
28 years$4,346$3,194$2,308$1,645$1,159$365
29 years$4,151$3,013$2,148$1,508$1,046$314
30 years$3,969$2,846$2,001$1,384$945$269
31 years$3,800$2,690$1,865$1,271$855$231
32 years$3,641$2,545$1,741$1,169$773$198
33 years$3,492$2,410$1,625$1,075$700$170
34 years$3,352$2,285$1,518$989$633$146
35 years$3,221$2,167$1,420$910$574$126
36 years$3,097$2,057$1,328$838$520$108
37 years$2,980$1,953$1,243$772$471$93
38 years$2,870$1,856$1,164$712$427$80
39 years$2,765$1,765$1,091$656$387$69
40 years$2,666$1,679$1,022$605$351$59
41 years$2,572$1,599$958$559$319$51
42 years$2,483$1,523$899$515$289$44
43 years$2,398$1,451$844$476$262$37
44 years$2,317$1,383$792$439$238$32
45 years$2,240$1,319$744$406$216$28
46 years$2,166$1,258$698$375$196$24
47 years$2,096$1,200$656$346$178$20
48 years$2,029$1,146$617$320$162$18
49 years$1,965$1,094$580$296$147$15
50 years$1,904$1,045$545$273$134$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,950,000, adding $3,080 every year, while hoping to spend $36,700 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: 58/28/14 Blend
39$1,950,000$1,950,000$1,950,000$1,950,000
40$2,152,077$2,048,727$2,018,502$2,269,084
41$2,332,540$2,110,066$2,047,073$2,409,855
42$2,530,181$2,173,181$2,075,372$2,558,907
43$2,746,712$2,238,119$2,103,349$2,720,525
44$2,984,021$2,304,931$2,130,956$2,895,923
45$3,244,185$2,373,667$2,158,137$3,086,436
46$3,529,493$2,444,378$2,184,836$3,293,534
47$3,842,466$2,517,118$2,210,993$3,518,836
48$4,185,882$2,591,940$2,236,544$3,764,122
49$4,562,797$2,668,900$2,261,424$4,031,354
50$4,976,581$2,748,055$2,285,561$4,322,692
51$5,430,945$2,829,463$2,308,880$4,640,515
52$5,929,977$2,913,182$2,331,303$4,987,440
53$6,478,180$2,999,273$2,352,747$5,366,354
54$7,080,515$3,087,798$2,373,124$5,780,431
55$7,742,447$3,178,820$2,392,344$6,233,170
56$8,469,998$3,272,404$2,410,309$6,728,425
57$9,269,800$3,368,614$2,426,916$7,270,441
58$10,149,162$3,467,518$2,442,060$7,863,891
59$11,116,135$3,569,185$2,455,627$8,513,928
60$12,179,589$3,673,683$2,467,499$9,226,223
61$13,349,299$3,781,085$2,477,552$10,007,027
62$14,636,031$3,891,462$2,485,654$10,863,225
63$16,051,651$4,004,889$2,491,668$11,802,401
64$17,609,231$4,121,439$2,495,450$12,832,913
65$19,323,173$4,241,191$2,496,849$13,963,967
66$21,209,349$4,364,221$2,495,705$15,205,707
67$23,285,243$4,490,609$2,491,852$16,569,308
68$25,570,124$4,620,435$2,485,115$18,067,084
69$28,085,221$4,753,780$2,475,311$19,712,601
70$30,853,927$4,890,729$2,462,247$21,520,809
71$33,902,017$5,031,364$2,445,722$23,508,177
72$37,257,893$5,175,771$2,425,524$25,692,854
73$40,952,852$5,324,038$2,401,433$28,094,836
74$45,021,378$5,476,251$2,373,216$30,736,158
75$49,501,470$5,632,499$2,340,631$33,641,098
76$54,435,002$5,792,873$2,303,423$36,836,409
77$59,868,111$5,957,463$2,261,327$40,351,571
78$65,851,641$6,126,361$2,214,065$44,219,066
79$72,441,617$6,299,661$2,161,343$48,474,688
80$79,699,772$6,477,455$2,102,859$53,157,880
81$87,694,136$6,659,838$2,038,292$58,312,105
82$96,499,673$6,846,904$1,967,310$63,985,257
83$106,198,987$7,038,750$1,889,562$70,230,110
84$116,883,107$7,235,472$1,804,685$77,104,823
85$128,652,339$7,437,165$1,712,298$84,673,482
86$141,617,218$7,643,927$1,612,000$93,006,705
87$155,899,549$7,855,854$1,503,376$102,182,315
88$171,633,554$8,073,042$1,385,991$112,286,068
89$188,967,144$8,295,589$1,259,389$123,412,463
90$208,063,310$8,523,589$1,123,096$135,665,639
91$229,101,662$8,757,140$976,614$149,160,353
92$252,280,127$8,996,335$819,426$164,023,063
93$277,816,814$9,241,269$650,991$180,393,127
94$305,952,072$9,492,034$470,742$198,424,112
95$336,950,761$9,748,722$278,090$218,285,247
96$371,104,752$10,011,423$72,419$240,163,023
97$408,735,677$10,280,223$0$264,262,947
98$450,197,972$10,555,210$0$290,833,458
99$495,882,215$10,836,465$0$320,115,126
100$546,218,818$11,124,069$0$352,372,246