Can I retire at age 40 with 2,420,000?

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 $2,420,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.4%
1 years$199,841$198,061$196,325$194,629$192,974$187,928
2 years$98,931$97,089$95,303$93,572$91,892$86,843
3 years$65,299$63,449$61,667$59,952$58,300$53,405
4 years$48,486$46,641$44,878$43,192$41,580$36,878
5 years$38,401$36,567$34,827$33,176$31,609$27,111
6 years$31,680$29,860$28,146$26,531$25,011$20,723
7 years$26,881$25,076$23,389$21,813$20,341$16,263
8 years$23,283$21,495$19,836$18,298$16,874$13,005
9 years$20,487$18,715$17,085$15,586$14,211$10,545
10 years$18,251$16,497$14,895$13,435$12,108$8,643
11 years$16,423$14,686$13,113$11,693$10,413$7,143
12 years$14,900$13,181$11,638$10,256$9,024$5,943
13 years$13,613$11,912$10,397$9,055$7,869$4,970
14 years$12,510$10,828$9,342$8,038$6,898$4,175
15 years$11,556$9,891$8,435$7,168$6,074$3,520
16 years$10,722$9,075$7,647$6,418$5,368$2,976
17 years$9,986$8,358$6,959$5,767$4,760$2,522
18 years$9,333$7,723$6,352$5,197$4,232$2,142
19 years$8,749$7,158$5,815$4,696$3,772$1,823
20 years$8,225$6,651$5,337$4,253$3,369$1,553
21 years$7,751$6,195$4,909$3,860$3,015$1,325
22 years$7,320$5,783$4,524$3,510$2,703$1,131
23 years$6,928$5,409$4,177$3,196$2,426$967
24 years$6,569$5,068$3,863$2,915$2,181$827
25 years$6,239$4,756$3,578$2,662$1,962$708
26 years$5,935$4,470$3,319$2,434$1,767$606
27 years$5,654$4,207$3,082$2,228$1,594$519
28 years$5,394$3,964$2,865$2,041$1,438$445
29 years$5,152$3,739$2,666$1,872$1,298$382
30 years$4,926$3,531$2,483$1,718$1,173$327
31 years$4,716$3,338$2,315$1,578$1,061$281
32 years$4,519$3,159$2,160$1,450$959$241
33 years$4,334$2,991$2,017$1,334$868$207
34 years$4,160$2,835$1,884$1,227$786$177
35 years$3,997$2,689$1,762$1,129$712$152
36 years$3,844$2,552$1,648$1,040$645$131
37 years$3,698$2,424$1,543$958$585$112
38 years$3,561$2,304$1,445$883$530$96
39 years$3,432$2,191$1,353$815$481$83
40 years$3,309$2,084$1,269$751$436$71
41 years$3,192$1,984$1,190$693$396$61
42 years$3,081$1,890$1,116$640$359$52
43 years$2,976$1,800$1,047$591$326$45
44 years$2,875$1,716$983$545$296$39
45 years$2,780$1,636$923$504$268$33
46 years$2,689$1,561$867$465$244$29
47 years$2,602$1,490$814$430$221$25
48 years$2,518$1,422$765$397$201$21
49 years$2,439$1,358$719$367$183$18
50 years$2,363$1,297$676$339$166$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,420,000, adding $6,847 every year, while hoping to spend $48,958 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: 60/26/14 Blend
39$2,420,000$2,420,000$2,420,000$2,420,000
40$2,673,903$2,545,643$2,508,133$2,824,629
41$2,894,550$2,618,288$2,540,064$2,999,606
42$3,136,062$2,692,853$2,571,425$3,184,297
43$3,400,516$2,769,378$2,602,143$3,384,603
44$3,690,199$2,847,907$2,632,144$3,602,038
45$4,007,628$2,928,484$2,661,350$3,838,266
46$4,355,577$3,011,151$2,689,677$4,095,121
47$4,737,101$3,095,952$2,717,036$4,374,623
48$5,155,564$3,182,933$2,743,336$4,678,994
49$5,614,672$3,272,137$2,768,478$5,010,684
50$6,118,505$3,363,608$2,792,359$5,372,387
51$6,671,561$3,457,393$2,814,871$5,767,074
52$7,278,791$3,553,536$2,835,899$6,198,015
53$7,945,650$3,652,081$2,855,324$6,668,812
54$8,678,148$3,753,075$2,873,019$7,183,432
55$9,482,905$3,856,562$2,888,852$7,746,246
56$10,367,214$3,962,586$2,902,681$8,362,069
57$11,339,110$4,071,193$2,914,361$9,036,203
58$12,407,444$4,182,427$2,923,737$9,774,492
59$13,581,969$4,296,331$2,930,647$10,583,372
60$14,873,427$4,412,948$2,934,921$11,469,935
61$16,293,656$4,532,322$2,936,381$12,441,992
62$17,855,697$4,654,495$2,934,838$13,508,152
63$19,573,920$4,779,506$2,930,096$14,677,897
64$21,464,154$4,907,397$2,921,949$15,961,678
65$23,543,844$5,038,205$2,910,181$17,371,006
66$25,832,208$5,171,969$2,894,564$18,918,567
67$28,350,423$5,308,725$2,874,861$20,618,339
68$31,121,820$5,448,507$2,850,823$22,485,721
69$34,172,109$5,591,347$2,822,189$24,537,686
70$37,529,617$5,737,275$2,788,685$26,792,930
71$41,225,557$5,886,321$2,750,025$29,272,060
72$45,294,323$6,038,510$2,705,910$31,997,780
73$49,773,811$6,193,864$2,656,025$34,995,109
74$54,705,780$6,352,404$2,600,042$38,291,615
75$60,136,244$6,514,146$2,537,618$41,917,678
76$66,115,905$6,679,103$2,468,392$45,906,774
77$72,700,633$6,847,285$2,391,989$50,295,793
78$79,951,992$7,018,696$2,308,015$55,125,386
79$87,937,820$7,193,337$2,216,059$60,440,349
80$96,732,870$7,371,204$2,115,689$66,290,044
81$106,419,515$7,552,285$2,006,458$72,728,870
82$117,088,525$7,736,567$1,887,893$79,816,771
83$128,839,922$7,924,026$1,759,505$87,619,806
84$141,783,925$8,114,634$1,620,779$96,210,770
85$156,041,989$8,308,355$1,471,179$105,669,881
86$171,747,954$8,505,146$1,310,145$116,085,543
87$189,049,301$8,704,954$1,137,092$127,555,171
88$208,108,553$8,907,720$951,407$140,186,121
89$229,104,799$9,113,372$752,453$154,096,696
90$252,235,391$9,321,830$539,562$169,417,267
91$277,717,804$9,533,002$312,040$186,291,503
92$305,791,686$9,746,785$69,160$204,877,727
93$336,721,124$9,963,064$0$225,350,413
94$370,797,134$10,181,709$0$247,930,218
95$408,340,405$10,402,577$0$272,813,508
96$449,704,333$10,625,509$0$300,223,561
97$495,278,347$10,850,331$0$330,417,820
98$545,491,592$11,076,851$0$363,679,983
99$600,816,976$11,304,858$0$400,322,678
100$661,775,634$11,534,123$0$440,690,418