Can I retire at age 40 with 1,990,000?

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 $1,990,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$164,332$162,869$161,440$160,046$158,685$157,225
2 years$81,353$79,838$78,369$76,945$75,564$74,093
3 years$53,696$52,175$50,710$49,300$47,941$46,504
4 years$39,871$38,354$36,904$35,518$34,192$32,801
5 years$31,578$30,070$28,639$27,281$25,992$24,651
6 years$26,051$24,554$23,145$21,817$20,567$19,277
7 years$22,105$20,621$19,233$17,937$16,726$15,488
8 years$19,146$17,676$16,311$15,047$13,876$12,690
9 years$16,847$15,390$14,049$12,816$11,686$10,551
10 years$15,008$13,565$12,248$11,048$9,957$8,873
11 years$13,504$12,077$10,783$9,615$8,563$7,530
12 years$12,253$10,839$9,570$8,434$7,421$6,436
13 years$11,194$9,796$8,550$7,446$6,471$5,534
14 years$10,288$8,904$7,682$6,609$5,672$4,783
15 years$9,503$8,134$6,936$5,894$4,994$4,150
16 years$8,816$7,463$6,288$5,278$4,414$3,614
17 years$8,212$6,873$5,722$4,742$3,914$3,156
18 years$7,675$6,351$5,224$4,274$3,480$2,764
19 years$7,195$5,886$4,782$3,862$3,102$2,425
20 years$6,763$5,469$4,389$3,497$2,771$2,132
21 years$6,374$5,095$4,037$3,174$2,479$1,878
22 years$6,020$4,756$3,720$2,886$2,222$1,656
23 years$5,697$4,448$3,435$2,628$1,995$1,462
24 years$5,402$4,167$3,177$2,397$1,793$1,292
25 years$5,131$3,911$2,943$2,189$1,614$1,143
26 years$4,881$3,676$2,729$2,002$1,453$1,013
27 years$4,649$3,459$2,534$1,832$1,310$897
28 years$4,435$3,259$2,356$1,679$1,182$796
29 years$4,236$3,075$2,192$1,539$1,068$706
30 years$4,051$2,904$2,042$1,413$965$627
31 years$3,878$2,745$1,904$1,298$872$557
32 years$3,716$2,598$1,776$1,192$789$494
33 years$3,564$2,460$1,658$1,097$714$439
34 years$3,421$2,331$1,550$1,009$646$391
35 years$3,287$2,211$1,449$929$586$347
36 years$3,161$2,099$1,355$855$530$309
37 years$3,041$1,993$1,269$788$481$275
38 years$2,928$1,894$1,188$726$436$245
39 years$2,822$1,801$1,113$670$395$218
40 years$2,721$1,714$1,043$618$359$194
41 years$2,625$1,632$978$570$325$173
42 years$2,534$1,554$918$526$295$154
43 years$2,447$1,480$861$486$268$137
44 years$2,364$1,411$808$448$243$122
45 years$2,286$1,346$759$414$221$109
46 years$2,211$1,284$713$382$200$97
47 years$2,139$1,225$670$353$182$86
48 years$2,071$1,170$629$327$165$77
49 years$2,006$1,117$591$302$150$68
50 years$1,943$1,067$556$279$136$61

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,990,000, adding $6,927 every year, while hoping to spend $26,573 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: 82/9/9 Blend
39$1,990,000$1,990,000$1,990,000$1,990,000
40$2,200,125$2,094,655$2,063,810$2,377,192
41$2,396,265$2,169,020$2,104,674$2,568,479
42$2,611,519$2,246,138$2,146,017$2,774,199
43$2,847,812$2,326,116$2,187,826$2,999,245
44$3,107,258$2,409,065$2,230,088$3,245,540
45$3,392,191$2,495,101$2,272,788$3,515,200
46$3,705,178$2,584,345$2,315,910$3,810,556
47$4,049,050$2,676,922$2,359,437$4,134,176
48$4,426,924$2,772,963$2,403,349$4,488,888
49$4,842,235$2,872,602$2,447,626$4,877,806
50$5,298,766$2,975,983$2,492,245$5,304,360
51$5,800,686$3,083,252$2,537,181$5,772,329
52$6,352,588$3,194,563$2,582,408$6,285,875
53$6,959,530$3,310,075$2,627,897$6,849,584
54$7,627,089$3,429,955$2,673,618$7,468,505
55$8,361,406$3,554,377$2,719,538$8,148,202
56$9,169,248$3,683,520$2,765,621$8,894,804
57$10,058,072$3,817,573$2,811,830$9,715,064
58$11,036,093$3,956,732$2,858,124$10,616,420
59$12,112,363$4,101,200$2,904,460$11,607,068
60$13,296,856$4,251,191$2,950,792$12,696,036
61$14,600,563$4,406,927$2,997,070$13,893,270
62$16,035,591$4,568,637$3,043,243$15,209,732
63$17,615,284$4,736,563$3,089,254$16,657,495
64$19,354,343$4,910,955$3,135,045$18,249,863
65$21,268,969$5,092,075$3,180,552$20,001,493
66$23,377,012$5,280,195$3,225,708$21,928,537
67$25,698,142$5,475,599$3,270,444$24,048,788
68$28,254,032$5,678,583$3,314,684$26,381,853
69$31,068,566$5,889,455$3,358,348$28,949,335
70$34,168,059$6,108,538$3,401,352$31,775,038
71$37,581,512$6,336,167$3,443,608$34,885,190
72$41,340,878$6,572,692$3,485,021$38,308,692
73$45,481,370$6,818,476$3,525,492$42,077,388
74$50,041,790$7,073,902$3,564,916$46,226,366
75$55,064,895$7,339,365$3,603,182$50,794,291
76$60,597,799$7,615,279$3,640,174$55,823,768
77$66,692,423$7,902,076$3,675,768$61,361,741
78$73,405,978$8,200,205$3,709,834$67,459,941
79$80,801,510$8,510,138$3,742,236$74,175,370
80$88,948,492$8,832,363$3,772,829$81,570,839
81$97,923,481$9,167,391$3,801,462$89,715,563
82$107,810,840$9,515,757$3,827,975$98,685,812
83$118,703,533$9,878,017$3,852,199$108,565,628
84$130,704,004$10,254,750$3,873,958$119,447,624
85$143,925,144$10,646,564$3,893,067$131,433,851
86$158,491,354$11,054,091$3,909,330$144,636,765
87$174,539,721$11,477,990$3,922,542$159,180,289
88$192,221,312$11,918,952$3,932,487$175,200,976
89$211,702,600$12,377,695$3,938,940$192,849,306
90$233,167,033$12,854,970$3,941,662$212,291,098
91$256,816,767$13,351,560$3,940,404$233,709,080
92$282,874,575$13,868,284$3,934,905$257,304,613
93$311,585,948$14,405,996$3,924,891$283,299,586
94$343,221,414$14,965,589$3,910,073$311,938,518
95$378,079,088$15,547,993$3,890,151$343,490,858
96$416,487,492$16,154,181$3,864,808$378,253,534
97$458,808,649$16,785,169$3,833,712$416,553,750
98$505,441,506$17,442,017$3,796,516$458,752,079
99$556,825,698$18,125,834$3,752,858$505,245,864
100$613,445,696$18,837,777$3,702,355$556,472,965