Can I retire at age 40 with 2,060,000?

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 $2,060,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.8%
1 years$170,113$168,598$167,119$165,676$164,267$159,713
2 years$84,214$82,646$81,126$79,652$78,223$73,669
3 years$55,585$54,010$52,494$51,034$49,628$45,216
4 years$41,273$39,703$38,202$36,767$35,395$31,160
5 years$32,689$31,128$29,646$28,241$26,907$22,859
6 years$26,967$25,418$23,959$22,584$21,290$17,435
7 years$22,882$21,346$19,910$18,568$17,315$13,651
8 years$19,820$18,298$16,885$15,576$14,364$10,891
9 years$17,439$15,931$14,543$13,267$12,097$8,810
10 years$15,536$14,043$12,679$11,437$10,307$7,203
11 years$13,980$12,501$11,162$9,953$8,864$5,937
12 years$12,684$11,221$9,906$8,730$7,682$4,927
13 years$11,588$10,140$8,851$7,708$6,699$4,109
14 years$10,649$9,217$7,952$6,842$5,872$3,443
15 years$9,837$8,420$7,180$6,102$5,170$2,894
16 years$9,127$7,725$6,510$5,463$4,569$2,440
17 years$8,501$7,115$5,924$4,909$4,052$2,062
18 years$7,945$6,574$5,407$4,424$3,602$1,746
19 years$7,448$6,093$4,950$3,997$3,211$1,481
20 years$7,001$5,662$4,543$3,620$2,868$1,258
21 years$6,598$5,274$4,179$3,286$2,567$1,070
22 years$6,231$4,923$3,851$2,987$2,301$911
23 years$5,897$4,604$3,556$2,721$2,065$776
24 years$5,592$4,314$3,289$2,481$1,856$662
25 years$5,311$4,048$3,046$2,266$1,670$564
26 years$5,052$3,805$2,825$2,072$1,505$482
27 years$4,813$3,581$2,623$1,897$1,356$411
28 years$4,591$3,374$2,439$1,738$1,224$351
29 years$4,385$3,183$2,269$1,594$1,105$300
30 years$4,193$3,006$2,114$1,462$999$257
31 years$4,014$2,842$1,971$1,343$903$220
32 years$3,846$2,689$1,839$1,234$817$188
33 years$3,689$2,546$1,717$1,135$739$161
34 years$3,542$2,413$1,604$1,044$669$137
35 years$3,403$2,289$1,500$961$606$118
36 years$3,272$2,173$1,403$885$549$101
37 years$3,148$2,064$1,313$816$498$86
38 years$3,032$1,961$1,230$752$451$74
39 years$2,921$1,865$1,152$693$409$63
40 years$2,816$1,774$1,080$640$371$54
41 years$2,717$1,689$1,013$590$337$46
42 years$2,623$1,608$950$545$306$40
43 years$2,533$1,533$891$503$277$34
44 years$2,448$1,461$837$464$252$29
45 years$2,366$1,393$786$429$228$25
46 years$2,289$1,329$738$396$207$21
47 years$2,215$1,268$693$366$188$18
48 years$2,144$1,211$651$338$171$16
49 years$2,076$1,156$612$312$155$13
50 years$2,011$1,104$576$289$141$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,060,000, adding $5,885 every year, while hoping to spend $27,670 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: 36/48/16 Blend
39$2,060,000$2,060,000$2,060,000$2,060,000
40$2,276,190$2,167,010$2,135,080$2,346,802
41$2,478,921$2,243,753$2,177,165$2,475,160
42$2,701,403$2,323,329$2,219,732$2,610,590
43$2,945,622$2,405,848$2,262,768$2,756,206
44$3,213,764$2,491,423$2,306,260$2,912,928
45$3,508,238$2,580,173$2,350,190$3,081,771
46$3,831,700$2,672,223$2,394,542$3,263,846
47$4,187,071$2,767,700$2,439,298$3,460,375
48$4,577,573$2,866,738$2,484,435$3,672,700
49$5,006,754$2,969,477$2,529,932$3,902,295
50$5,478,523$3,076,061$2,575,765$4,150,780
51$5,997,187$3,186,643$2,621,908$4,419,934
52$6,567,490$3,301,378$2,668,331$4,711,716
53$7,194,659$3,420,430$2,715,006$5,028,276
54$7,884,454$3,543,971$2,761,898$5,371,979
55$8,643,220$3,672,177$2,808,973$5,745,426
56$9,477,948$3,805,234$2,856,194$6,151,479
57$10,396,342$3,943,334$2,903,520$6,593,283
58$11,406,890$4,086,678$2,950,908$7,074,300
59$12,518,941$4,235,474$2,998,313$7,598,336
60$13,742,802$4,389,941$3,045,684$8,169,583
61$15,089,824$4,550,304$3,092,971$8,792,649
62$16,572,518$4,716,801$3,140,118$9,472,607
63$18,204,668$4,889,678$3,187,065$10,215,041
64$20,001,463$5,069,191$3,233,751$11,026,094
65$21,979,638$5,255,607$3,280,107$11,912,529
66$24,157,635$5,449,206$3,326,065$12,881,793
67$26,555,774$5,650,277$3,371,548$13,942,079
68$29,196,447$5,859,124$3,416,478$15,102,411
69$32,104,325$6,076,061$3,460,771$16,372,722
70$35,306,596$6,301,419$3,504,337$17,763,948
71$38,833,220$6,535,539$3,547,083$19,288,132
72$42,717,208$6,778,780$3,588,910$20,958,535
73$46,994,937$7,031,514$3,629,712$22,789,759
74$51,706,493$7,294,131$3,669,380$24,797,883
75$56,896,046$7,567,034$3,707,795$27,000,617
76$62,612,272$7,850,648$3,744,835$29,417,463
77$68,908,807$8,145,413$3,780,371$32,069,901
78$75,844,757$8,451,790$3,814,264$34,981,588
79$83,485,251$8,770,257$3,846,372$38,178,580
80$91,902,063$9,101,315$3,876,541$41,689,579
81$101,174,280$9,445,487$3,904,612$45,546,196
82$111,389,058$9,803,316$3,930,417$49,783,254
83$122,642,435$10,175,372$3,953,780$54,439,112
84$135,040,245$10,562,247$3,974,513$59,556,023
85$148,699,112$10,964,559$3,992,422$65,180,533
86$163,747,554$11,382,955$4,007,300$71,363,920
87$180,327,193$11,818,108$4,018,933$78,162,672
88$198,594,092$12,270,722$4,027,093$85,639,019
89$218,720,232$12,741,529$4,031,543$93,861,519
90$240,895,128$13,231,296$4,032,032$102,905,702
91$265,327,625$13,740,824$4,028,299$112,854,780
92$292,247,864$14,270,945$4,020,068$123,800,430
93$321,909,457$14,822,533$4,007,051$135,843,656
94$354,591,880$15,396,496$3,988,947$149,095,740
95$390,603,112$15,993,784$3,965,436$163,679,290
96$430,282,540$16,615,390$3,936,189$179,729,392
97$474,004,164$17,262,349$3,900,856$197,394,883
98$522,180,126$17,935,742$3,859,072$216,839,754
99$575,264,604$18,636,698$3,810,456$238,244,691
100$633,758,096$19,366,398$3,754,608$261,808,780