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

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 $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%19.2%
1 years$161,029$159,595$158,195$156,829$155,496$149,740
2 years$79,717$78,233$76,794$75,399$74,046$68,312
3 years$52,617$51,126$49,691$48,309$46,978$41,446
4 years$39,070$37,583$36,162$34,804$33,505$28,218
5 years$30,943$29,466$28,063$26,733$25,470$20,441
6 years$25,527$24,061$22,679$21,378$20,153$15,387
7 years$21,660$20,206$18,847$17,576$16,390$11,884
8 years$18,761$17,320$15,983$14,744$13,597$9,347
9 years$16,508$15,081$13,767$12,559$11,451$7,451
10 years$14,706$13,293$12,002$10,826$9,757$6,001
11 years$13,233$11,834$10,566$9,422$8,391$4,870
12 years$12,006$10,621$9,377$8,264$7,271$3,977
13 years$10,969$9,599$8,378$7,296$6,341$3,264
14 years$10,081$8,725$7,528$6,477$5,558$2,689
15 years$9,312$7,970$6,797$5,776$4,894$2,222
16 years$8,639$7,313$6,162$5,172$4,325$1,842
17 years$8,047$6,735$5,607$4,647$3,835$1,529
18 years$7,520$6,223$5,119$4,188$3,410$1,272
19 years$7,050$5,768$4,686$3,784$3,039$1,060
20 years$6,627$5,359$4,300$3,427$2,715$884
21 years$6,245$4,992$3,956$3,110$2,430$738
22 years$5,899$4,660$3,646$2,828$2,178$616
23 years$5,583$4,358$3,366$2,575$1,955$515
24 years$5,293$4,084$3,113$2,349$1,757$431
25 years$5,027$3,832$2,883$2,145$1,581$361
26 years$4,782$3,602$2,674$1,961$1,424$302
27 years$4,556$3,390$2,483$1,795$1,284$253
28 years$4,346$3,194$2,308$1,645$1,159$212
29 years$4,151$3,013$2,148$1,508$1,046$178
30 years$3,969$2,846$2,001$1,384$945$149
31 years$3,800$2,690$1,865$1,271$855$125
32 years$3,641$2,545$1,741$1,169$773$105
33 years$3,492$2,410$1,625$1,075$700$88
34 years$3,352$2,285$1,518$989$633$74
35 years$3,221$2,167$1,420$910$574$62
36 years$3,097$2,057$1,328$838$520$52
37 years$2,980$1,953$1,243$772$471$43
38 years$2,870$1,856$1,164$712$427$36
39 years$2,765$1,765$1,091$656$387$31
40 years$2,666$1,679$1,022$605$351$26
41 years$2,572$1,599$958$559$319$21
42 years$2,483$1,523$899$515$289$18
43 years$2,398$1,451$844$476$262$15
44 years$2,317$1,383$792$439$238$13
45 years$2,240$1,319$744$406$216$11
46 years$2,166$1,258$698$375$196$9
47 years$2,096$1,200$656$346$178$7
48 years$2,029$1,146$617$320$162$6
49 years$1,965$1,094$580$296$147$5
50 years$1,904$1,045$545$273$134$4

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 $6,540 every year, while hoping to spend $31,009 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: 42/45/13 Blend
39$1,950,000$1,950,000$1,950,000$1,950,000
40$2,155,646$2,052,296$2,022,071$2,237,714
41$2,342,529$2,119,865$2,056,817$2,363,527
42$2,547,434$2,189,706$2,091,688$2,496,090
43$2,772,167$2,261,897$2,126,655$2,638,956
44$3,018,718$2,336,519$2,161,687$2,793,078
45$3,289,276$2,413,658$2,196,753$2,959,507
46$3,586,255$2,493,399$2,231,816$3,139,395
47$3,912,312$2,575,835$2,266,841$3,334,010
48$4,270,374$2,661,057$2,301,787$3,544,747
49$4,663,668$2,749,165$2,336,612$3,773,139
50$5,095,746$2,840,258$2,371,272$4,020,871
51$5,570,522$2,934,440$2,405,720$4,289,798
52$6,092,307$3,031,820$2,439,904$4,581,961
53$6,665,853$3,132,510$2,473,771$4,899,603
54$7,296,393$3,236,626$2,507,266$5,245,195
55$7,989,693$3,344,288$2,540,326$5,621,453
56$8,752,104$3,455,621$2,572,890$6,031,369
57$9,590,627$3,570,755$2,604,890$6,478,233
58$10,512,972$3,689,823$2,636,255$6,965,670
59$11,527,636$3,812,964$2,666,910$7,497,666
60$12,643,979$3,940,324$2,696,776$8,078,613
61$13,872,315$4,072,050$2,725,768$8,713,342
62$15,224,009$4,208,298$2,753,800$9,407,176
63$16,711,583$4,349,230$2,780,776$10,165,974
64$18,348,833$4,495,010$2,806,601$10,996,187
65$20,150,961$4,645,813$2,831,170$11,904,918
66$22,134,719$4,801,818$2,854,373$12,899,992
67$24,318,563$4,963,210$2,876,098$13,990,022
68$26,722,832$5,130,183$2,896,223$15,184,499
69$29,369,935$5,302,936$2,914,620$16,493,870
70$32,284,566$5,481,677$2,931,158$17,929,646
71$35,493,935$5,666,622$2,945,694$19,504,504
72$39,028,024$5,857,995$2,958,083$21,232,405
73$42,919,872$6,056,026$2,968,168$23,128,732
74$47,205,884$6,260,957$2,975,787$25,210,426
75$51,926,178$6,473,037$2,980,769$27,496,148
76$57,124,958$6,692,526$2,982,935$30,006,459
77$62,850,937$6,919,693$2,982,097$32,764,006
78$69,157,791$7,154,816$2,978,056$35,793,737
79$76,104,670$7,398,187$2,970,605$39,123,140
80$83,756,754$7,650,105$2,959,528$42,782,494
81$92,185,867$7,910,884$2,944,596$46,805,160
82$101,471,156$8,180,848$2,925,570$51,227,892
83$111,699,837$8,460,333$2,902,200$56,091,183
84$122,968,021$8,749,690$2,874,224$61,439,646
85$135,381,615$9,049,281$2,841,367$67,322,434
86$149,057,329$9,359,484$2,803,342$73,793,706
87$164,123,769$9,680,691$2,759,846$80,913,129
88$180,722,657$10,013,309$2,710,565$88,746,450
89$199,010,167$10,357,761$2,655,168$97,366,106
90$219,158,398$10,714,485$2,593,310$106,851,913
91$241,356,999$11,083,939$2,524,630$117,291,815
92$265,814,956$11,466,595$2,448,748$128,782,713
93$292,762,571$11,862,947$2,365,271$141,431,379
94$322,453,629$12,273,508$2,273,783$155,355,463
95$355,167,797$12,698,807$2,173,852$170,684,597
96$391,213,262$13,139,399$2,065,027$187,561,625
97$430,929,644$13,595,859$1,946,834$206,143,943
98$474,691,194$14,068,782$1,818,779$226,604,986
99$522,910,334$14,558,791$1,680,347$249,135,864
100$576,041,547$15,066,530$1,530,997$273,947,161