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%17.8%
1 years$165,158$163,687$162,252$160,851$159,483$154,439
2 years$81,761$80,239$78,763$77,332$75,944$70,909
3 years$53,966$52,437$50,965$49,547$48,182$43,313
4 years$40,071$38,547$37,089$35,696$34,364$29,698
5 years$31,737$30,221$28,783$27,418$26,123$21,673
6 years$26,182$24,678$23,261$21,926$20,670$16,439
7 years$22,216$20,724$19,330$18,027$16,810$12,799
8 years$19,243$17,765$16,393$15,122$13,946$10,151
9 years$16,931$15,467$14,120$12,881$11,744$8,162
10 years$15,083$13,634$12,310$11,103$10,007$6,631
11 years$13,572$12,137$10,837$9,663$8,606$5,431
12 years$12,314$10,894$9,618$8,476$7,458$4,477
13 years$11,250$9,845$8,593$7,483$6,503$3,709
14 years$10,339$8,949$7,721$6,643$5,701$3,086
15 years$9,550$8,175$6,971$5,924$5,020$2,576
16 years$8,861$7,500$6,320$5,304$4,436$2,156
17 years$8,253$6,907$5,751$4,766$3,934$1,809
18 years$7,713$6,383$5,250$4,295$3,497$1,520
19 years$7,231$5,915$4,806$3,881$3,117$1,280
20 years$6,797$5,497$4,411$3,515$2,785$1,079
21 years$6,406$5,120$4,057$3,190$2,492$910
22 years$6,050$4,779$3,739$2,900$2,234$769
23 years$5,726$4,470$3,452$2,642$2,005$650
24 years$5,429$4,188$3,193$2,409$1,802$550
25 years$5,156$3,930$2,957$2,200$1,622$465
26 years$4,905$3,694$2,743$2,012$1,461$394
27 years$4,673$3,476$2,547$1,841$1,317$334
28 years$4,458$3,276$2,368$1,687$1,188$283
29 years$4,258$3,090$2,203$1,547$1,073$240
30 years$4,071$2,919$2,052$1,420$970$203
31 years$3,897$2,759$1,913$1,304$877$172
32 years$3,734$2,611$1,785$1,198$793$146
33 years$3,582$2,472$1,667$1,102$718$124
34 years$3,438$2,343$1,557$1,014$650$105
35 years$3,304$2,222$1,456$933$588$89
36 years$3,176$2,109$1,362$860$533$76
37 years$3,057$2,003$1,275$792$483$64
38 years$2,943$1,904$1,194$730$438$55
39 years$2,836$1,811$1,119$673$397$46
40 years$2,734$1,723$1,048$621$360$39
41 years$2,638$1,640$983$573$327$33
42 years$2,546$1,562$922$529$297$28
43 years$2,459$1,488$865$488$269$24
44 years$2,376$1,418$812$451$244$20
45 years$2,297$1,352$763$416$222$17
46 years$2,222$1,290$716$384$201$15
47 years$2,150$1,231$673$355$183$12
48 years$2,081$1,175$632$328$166$11
49 years$2,016$1,122$594$303$151$9
50 years$1,953$1,072$559$280$137$8

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 $5,156 every year, while hoping to spend $55,093 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: 61/27/12 Blend
39$2,000,000$2,000,000$2,000,000$2,000,000
40$2,209,318$2,103,318$2,072,318$2,337,457
41$2,376,050$2,147,762$2,083,123$2,468,547
42$2,557,942$2,192,538$2,092,442$2,604,802
43$2,756,483$2,237,603$2,100,169$2,752,139
44$2,973,310$2,282,911$2,106,191$2,911,630
45$3,210,227$2,328,413$2,110,387$3,084,459
46$3,469,219$2,374,054$2,112,634$3,271,930
47$3,752,472$2,419,775$2,112,800$3,475,480
48$4,062,392$2,465,512$2,110,747$3,696,691
49$4,401,630$2,511,197$2,106,331$3,937,308
50$4,773,104$2,556,753$2,099,401$4,199,251
51$5,180,028$2,602,101$2,089,798$4,484,640
52$5,625,940$2,647,153$2,077,355$4,795,808
53$6,114,737$2,691,815$2,061,898$5,135,327
54$6,650,713$2,735,986$2,043,245$5,506,031
55$7,238,595$2,779,559$2,021,202$5,911,044
56$7,883,591$2,822,416$1,995,572$6,353,809
57$8,591,435$2,864,433$1,966,142$6,838,120
58$9,368,447$2,905,476$1,932,693$7,368,161
59$10,221,586$2,945,402$1,894,996$7,948,539
60$11,158,518$2,984,057$1,852,808$8,584,337
61$12,187,689$3,021,277$1,805,879$9,281,152
62$13,318,402$3,056,888$1,753,944$10,045,158
63$14,560,905$3,090,702$1,696,728$10,883,156
64$15,926,491$3,122,520$1,633,942$11,802,646
65$17,427,599$3,152,129$1,565,285$12,811,891
66$19,077,932$3,179,302$1,490,440$13,920,001
67$20,892,590$3,203,796$1,409,079$15,137,016
68$22,888,208$3,225,356$1,320,856$16,474,004
69$25,083,112$3,243,706$1,225,412$17,943,162
70$27,497,497$3,258,554$1,122,371$19,557,935
71$30,153,610$3,269,592$1,011,338$21,333,144
72$33,075,964$3,276,488$891,904$23,285,122
73$36,291,570$3,278,893$763,640$25,431,874
74$39,830,185$3,276,434$626,097$27,793,243
75$43,724,601$3,268,716$478,809$30,391,103
76$48,010,947$3,255,320$321,285$33,249,562
77$52,729,033$3,235,800$153,018$36,395,191
78$57,922,724$3,209,684$0$39,857,278
79$63,640,355$3,176,471$0$43,671,505
80$69,935,183$3,135,631$0$47,891,180
81$76,865,895$3,086,600$0$52,535,980
82$84,497,155$3,028,782$0$57,649,206
83$92,900,218$2,961,546$0$63,278,576
84$102,153,601$2,884,222$0$69,476,682
85$112,343,822$2,796,103$0$76,301,482
86$123,566,218$2,696,438$0$83,816,851
87$135,925,843$2,584,434$0$92,093,184
88$149,538,460$2,459,252$0$101,208,059
89$164,531,632$2,320,004$0$111,246,976
90$181,045,924$2,165,751$0$122,304,160
91$199,236,235$1,995,499$0$134,483,455
92$219,273,252$1,808,199$0$147,899,301
93$241,345,064$1,602,741$0$162,677,823
94$265,658,939$1,377,953$0$178,958,016
95$292,443,273$1,132,596$0$196,893,064
96$321,949,755$865,361$0$216,651,783
97$354,455,731$574,865$0$238,420,220
98$390,266,831$259,649$0$262,403,412
99$429,719,846$0$0$288,827,319
100$473,185,912$0$0$317,965,276