Can I retire at age 40 with 2,000,000?

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 $2,000,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.7%
1 years$165,158$163,687$162,252$160,851$159,483$153,885
2 years$81,761$80,239$78,763$77,332$75,944$70,364
3 years$53,966$52,437$50,965$49,547$48,182$42,794
4 years$40,071$38,547$37,089$35,696$34,364$29,209
5 years$31,737$30,221$28,783$27,418$26,123$21,215
6 years$26,182$24,678$23,261$21,926$20,670$16,013
7 years$22,216$20,724$19,330$18,027$16,810$12,403
8 years$19,243$17,765$16,393$15,122$13,946$9,785
9 years$16,931$15,467$14,120$12,881$11,744$7,824
10 years$15,083$13,634$12,310$11,103$10,007$6,321
11 years$13,572$12,137$10,837$9,663$8,606$5,147
12 years$12,314$10,894$9,618$8,476$7,458$4,217
13 years$11,250$9,845$8,593$7,483$6,503$3,473
14 years$10,339$8,949$7,721$6,643$5,701$2,871
15 years$9,550$8,175$6,971$5,924$5,020$2,381
16 years$8,861$7,500$6,320$5,304$4,436$1,980
17 years$8,253$6,907$5,751$4,766$3,934$1,650
18 years$7,713$6,383$5,250$4,295$3,497$1,378
19 years$7,231$5,915$4,806$3,881$3,117$1,152
20 years$6,797$5,497$4,411$3,515$2,785$965
21 years$6,406$5,120$4,057$3,190$2,492$808
22 years$6,050$4,779$3,739$2,900$2,234$678
23 years$5,726$4,470$3,452$2,642$2,005$569
24 years$5,429$4,188$3,193$2,409$1,802$478
25 years$5,156$3,930$2,957$2,200$1,622$402
26 years$4,905$3,694$2,743$2,012$1,461$338
27 years$4,673$3,476$2,547$1,841$1,317$284
28 years$4,458$3,276$2,368$1,687$1,188$239
29 years$4,258$3,090$2,203$1,547$1,073$201
30 years$4,071$2,919$2,052$1,420$970$169
31 years$3,897$2,759$1,913$1,304$877$142
32 years$3,734$2,611$1,785$1,198$793$120
33 years$3,582$2,472$1,667$1,102$718$101
34 years$3,438$2,343$1,557$1,014$650$85
35 years$3,304$2,222$1,456$933$588$72
36 years$3,176$2,109$1,362$860$533$60
37 years$3,057$2,003$1,275$792$483$51
38 years$2,943$1,904$1,194$730$438$43
39 years$2,836$1,811$1,119$673$397$36
40 years$2,734$1,723$1,048$621$360$30
41 years$2,638$1,640$983$573$327$26
42 years$2,546$1,562$922$529$297$21
43 years$2,459$1,488$865$488$269$18
44 years$2,376$1,418$812$451$244$15
45 years$2,297$1,352$763$416$222$13
46 years$2,222$1,290$716$384$201$11
47 years$2,150$1,231$673$355$183$9
48 years$2,081$1,175$632$328$166$8
49 years$2,016$1,122$594$303$151$6
50 years$1,953$1,072$559$280$137$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,000,000, adding $6,274 every year, while hoping to spend $29,556 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: 70/14/16 Blend
39$2,000,000$2,000,000$2,000,000$2,000,000
40$2,210,472$2,104,472$2,073,472$2,356,549
41$2,404,492$2,176,143$2,111,486$2,526,199
42$2,617,313$2,250,336$2,149,782$2,707,680
43$2,850,819$2,327,143$2,188,340$2,905,548
44$3,107,089$2,406,660$2,227,136$3,121,415
45$3,388,411$2,488,985$2,266,144$3,357,059
46$3,697,306$2,574,223$2,305,338$3,614,434
47$4,036,552$2,662,481$2,344,687$3,895,693
48$4,409,209$2,753,870$2,384,162$4,203,209
49$4,818,645$2,848,507$2,423,729$4,539,592
50$5,268,574$2,946,511$2,463,351$4,907,718
51$5,763,086$3,048,008$2,502,991$5,310,756
52$6,306,688$3,153,127$2,542,608$5,752,192
53$6,904,344$3,262,004$2,582,159$6,235,870
54$7,561,524$3,374,779$2,621,598$6,766,022
55$8,284,253$3,491,597$2,660,876$7,347,311
56$9,079,172$3,612,610$2,699,940$7,984,870
57$9,953,595$3,737,975$2,738,735$8,684,358
58$10,915,582$3,867,856$2,777,203$9,452,007
59$11,974,013$4,002,424$2,815,282$10,294,680
60$13,138,673$4,141,853$2,852,905$11,219,942
61$14,420,343$4,286,329$2,890,002$12,236,124
62$15,830,902$4,436,043$2,926,500$13,352,404
63$17,383,437$4,591,192$2,962,321$14,578,898
64$19,092,371$4,751,984$2,997,383$15,926,745
65$20,973,594$4,918,633$3,031,597$17,408,222
66$23,044,618$5,091,362$3,064,872$19,036,853
67$25,324,734$5,270,405$3,097,111$20,827,540
68$27,835,204$5,456,002$3,128,211$22,796,701
69$30,599,454$5,648,404$3,158,065$24,962,427
70$33,643,296$5,847,874$3,186,558$27,344,650
71$36,995,175$6,054,683$3,213,570$29,965,332
72$40,686,434$6,269,113$3,238,976$32,848,671
73$44,751,610$6,491,460$3,262,642$36,021,332
74$49,228,762$6,722,029$3,284,428$39,512,695
75$54,159,827$6,961,140$3,304,187$43,355,132
76$59,591,017$7,209,123$3,321,765$47,584,315
77$65,573,255$7,466,325$3,336,999$52,239,551
78$72,162,656$7,733,104$3,349,718$57,364,150
79$79,421,056$8,009,834$3,359,742$63,005,839
80$87,416,593$8,296,906$3,366,882$69,217,206
81$96,224,354$8,594,723$3,370,942$76,056,199
82$105,927,083$8,903,708$3,371,712$83,586,675
83$116,615,956$9,224,301$3,368,976$91,878,997
84$128,391,450$9,556,959$3,362,503$101,010,702
85$141,364,286$9,902,158$3,352,055$111,067,230
86$155,656,474$10,260,394$3,337,379$122,142,732
87$171,402,465$10,632,184$3,318,213$134,340,955
88$188,750,422$11,018,067$3,294,278$147,776,227
89$207,863,615$11,418,602$3,265,286$162,574,529
90$228,921,964$11,834,374$3,230,934$178,874,686
91$252,123,737$12,265,990$3,190,903$196,829,680
92$277,687,420$12,714,086$3,144,860$216,608,089
93$305,853,782$13,179,321$3,092,457$238,395,683
94$336,888,143$13,662,383$3,033,330$262,397,169
95$371,082,883$14,163,989$2,967,096$288,838,134
96$408,760,199$14,684,887$2,893,356$317,967,163
97$450,275,148$15,225,855$2,811,692$350,058,193
98$496,018,995$15,787,704$2,721,666$385,413,094
99$546,422,913$16,371,282$2,622,822$424,364,521
100$601,962,044$16,977,469$2,514,681$467,279,050