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%15.8%
1 years$199,841$198,061$196,325$194,629$192,974$188,386
2 years$98,931$97,089$95,303$93,572$91,892$87,296
3 years$65,299$63,449$61,667$59,952$58,300$53,840
4 years$48,486$46,641$44,878$43,192$41,580$37,291
5 years$38,401$36,567$34,827$33,176$31,609$27,502
6 years$31,680$29,860$28,146$26,531$25,011$21,090
7 years$26,881$25,076$23,389$21,813$20,341$16,607
8 years$23,283$21,495$19,836$18,298$16,874$13,327
9 years$20,487$18,715$17,085$15,586$14,211$10,846
10 years$18,251$16,497$14,895$13,435$12,108$8,922
11 years$16,423$14,686$13,113$11,693$10,413$7,402
12 years$14,900$13,181$11,638$10,256$9,024$6,183
13 years$13,613$11,912$10,397$9,055$7,869$5,192
14 years$12,510$10,828$9,342$8,038$6,898$4,379
15 years$11,556$9,891$8,435$7,168$6,074$3,707
16 years$10,722$9,075$7,647$6,418$5,368$3,148
17 years$9,986$8,358$6,959$5,767$4,760$2,680
18 years$9,333$7,723$6,352$5,197$4,232$2,286
19 years$8,749$7,158$5,815$4,696$3,772$1,954
20 years$8,225$6,651$5,337$4,253$3,369$1,672
21 years$7,751$6,195$4,909$3,860$3,015$1,433
22 years$7,320$5,783$4,524$3,510$2,703$1,229
23 years$6,928$5,409$4,177$3,196$2,426$1,056
24 years$6,569$5,068$3,863$2,915$2,181$907
25 years$6,239$4,756$3,578$2,662$1,962$780
26 years$5,935$4,470$3,319$2,434$1,767$671
27 years$5,654$4,207$3,082$2,228$1,594$578
28 years$5,394$3,964$2,865$2,041$1,438$498
29 years$5,152$3,739$2,666$1,872$1,298$429
30 years$4,926$3,531$2,483$1,718$1,173$370
31 years$4,716$3,338$2,315$1,578$1,061$319
32 years$4,519$3,159$2,160$1,450$959$275
33 years$4,334$2,991$2,017$1,334$868$237
34 years$4,160$2,835$1,884$1,227$786$204
35 years$3,997$2,689$1,762$1,129$712$176
36 years$3,844$2,552$1,648$1,040$645$152
37 years$3,698$2,424$1,543$958$585$131
38 years$3,561$2,304$1,445$883$530$113
39 years$3,432$2,191$1,353$815$481$98
40 years$3,309$2,084$1,269$751$436$84
41 years$3,192$1,984$1,190$693$396$73
42 years$3,081$1,890$1,116$640$359$63
43 years$2,976$1,800$1,047$591$326$54
44 years$2,875$1,716$983$545$296$47
45 years$2,780$1,636$923$504$268$40
46 years$2,689$1,561$867$465$244$35
47 years$2,602$1,490$814$430$221$30
48 years$2,518$1,422$765$397$201$26
49 years$2,439$1,358$719$367$183$23
50 years$2,363$1,297$676$339$166$19

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 $3,250 every year, while hoping to spend $37,918 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: 78/16/6 Blend
39$2,420,000$2,420,000$2,420,000$2,420,000
40$2,670,192$2,541,932$2,504,422$2,876,828
41$2,902,208$2,626,143$2,547,976$3,097,000
42$3,156,617$2,713,208$2,591,718$3,333,120
43$3,435,666$2,803,229$2,635,614$3,590,928
44$3,741,826$2,896,309$2,679,629$3,872,563
45$4,077,819$2,992,555$2,723,723$4,180,382
46$4,446,645$3,092,079$2,767,856$4,516,979
47$4,851,606$3,194,995$2,811,984$4,885,211
48$5,296,344$3,301,423$2,856,059$5,288,222
49$5,784,865$3,411,487$2,900,031$5,729,476
50$6,321,587$3,525,315$2,943,848$6,212,789
51$6,911,374$3,643,041$2,987,452$6,742,360
52$7,559,587$3,764,803$3,030,784$7,322,816
53$8,272,130$3,890,743$3,073,781$7,959,254
54$9,055,509$4,021,011$3,116,374$8,657,285
55$9,916,890$4,155,760$3,158,492$9,423,092
56$10,864,171$4,295,150$3,200,059$10,263,484
57$11,906,050$4,439,346$3,240,994$11,185,963
58$13,052,113$4,588,520$3,281,214$12,198,791
59$14,312,922$4,742,851$3,320,628$13,311,072
60$15,700,113$4,902,523$3,359,142$14,532,831
61$17,226,506$5,067,729$3,396,654$15,875,117
62$18,906,228$5,238,666$3,433,061$17,350,097
63$20,754,844$5,415,541$3,468,249$18,971,181
64$22,789,504$5,598,569$3,502,102$20,753,137
65$25,029,107$5,787,972$3,534,495$22,712,240
66$27,494,474$5,983,981$3,565,299$24,866,418
67$30,208,548$6,186,834$3,594,375$27,235,425
68$33,196,612$6,396,781$3,621,578$29,841,024
69$36,486,523$6,614,079$3,646,757$32,707,194
70$40,108,976$6,838,997$3,669,751$35,860,356
71$44,097,794$7,071,811$3,690,391$39,329,620
72$48,490,251$7,312,811$3,708,500$43,147,061
73$53,327,414$7,562,296$3,723,892$47,348,017
74$58,654,538$7,820,577$3,736,372$51,971,431
75$64,521,494$8,087,977$3,745,732$57,060,208
76$70,983,230$8,364,833$3,751,759$62,661,626
77$78,100,301$8,651,491$3,754,224$68,827,777
78$85,939,432$8,948,314$3,752,890$75,616,064
79$94,574,150$9,255,678$3,747,509$83,089,735
80$104,085,480$9,573,972$3,737,817$91,318,484
81$114,562,706$9,903,604$3,723,540$100,379,109
82$126,104,215$10,244,993$3,704,392$110,356,233
83$138,818,425$10,598,578$3,680,069$121,343,102
84$152,824,809$10,964,813$3,650,256$133,442,468
85$168,255,022$11,344,172$3,614,623$146,767,555
86$185,254,143$11,737,144$3,572,821$161,443,128
87$203,982,042$12,144,242$3,524,487$177,606,670
88$224,614,895$12,565,994$3,469,242$195,409,679
89$247,346,839$13,002,952$3,406,686$215,019,097
90$272,391,810$13,455,691$3,336,404$236,618,886
91$299,985,560$13,924,804$3,257,958$260,411,760
92$330,387,879$14,410,912$3,170,892$286,621,103
93$363,885,056$14,914,659$3,074,730$315,493,074
94$400,792,568$15,436,715$2,968,970$347,298,930
95$441,458,071$15,977,775$2,853,092$382,337,583
96$486,264,673$16,538,564$2,726,549$420,938,428
97$535,634,550$17,119,835$2,588,769$463,464,442
98$590,032,938$17,722,370$2,439,157$510,315,618
99$649,972,517$18,346,986$2,277,088$561,932,734
100$716,018,254$18,994,528$2,101,910$618,801,515