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%16.9%
1 years$199,841$198,061$196,325$194,629$192,974$187,549
2 years$98,931$97,089$95,303$93,572$91,892$86,468
3 years$65,299$63,449$61,667$59,952$58,300$53,046
4 years$48,486$46,641$44,878$43,192$41,580$36,537
5 years$38,401$36,567$34,827$33,176$31,609$26,791
6 years$31,680$29,860$28,146$26,531$25,011$20,422
7 years$26,881$25,076$23,389$21,813$20,341$15,981
8 years$23,283$21,495$19,836$18,298$16,874$12,742
9 years$20,487$18,715$17,085$15,586$14,211$10,301
10 years$18,251$16,497$14,895$13,435$12,108$8,417
11 years$16,423$14,686$13,113$11,693$10,413$6,934
12 years$14,900$13,181$11,638$10,256$9,024$5,749
13 years$13,613$11,912$10,397$9,055$7,869$4,793
14 years$12,510$10,828$9,342$8,038$6,898$4,012
15 years$11,556$9,891$8,435$7,168$6,074$3,370
16 years$10,722$9,075$7,647$6,418$5,368$2,839
17 years$9,986$8,358$6,959$5,767$4,760$2,398
18 years$9,333$7,723$6,352$5,197$4,232$2,029
19 years$8,749$7,158$5,815$4,696$3,772$1,720
20 years$8,225$6,651$5,337$4,253$3,369$1,460
21 years$7,751$6,195$4,909$3,860$3,015$1,240
22 years$7,320$5,783$4,524$3,510$2,703$1,055
23 years$6,928$5,409$4,177$3,196$2,426$898
24 years$6,569$5,068$3,863$2,915$2,181$765
25 years$6,239$4,756$3,578$2,662$1,962$652
26 years$5,935$4,470$3,319$2,434$1,767$556
27 years$5,654$4,207$3,082$2,228$1,594$475
28 years$5,394$3,964$2,865$2,041$1,438$405
29 years$5,152$3,739$2,666$1,872$1,298$346
30 years$4,926$3,531$2,483$1,718$1,173$296
31 years$4,716$3,338$2,315$1,578$1,061$252
32 years$4,519$3,159$2,160$1,450$959$216
33 years$4,334$2,991$2,017$1,334$868$184
34 years$4,160$2,835$1,884$1,227$786$158
35 years$3,997$2,689$1,762$1,129$712$135
36 years$3,844$2,552$1,648$1,040$645$115
37 years$3,698$2,424$1,543$958$585$98
38 years$3,561$2,304$1,445$883$530$84
39 years$3,432$2,191$1,353$815$481$72
40 years$3,309$2,084$1,269$751$436$62
41 years$3,192$1,984$1,190$693$396$53
42 years$3,081$1,890$1,116$640$359$45
43 years$2,976$1,800$1,047$591$326$39
44 years$2,875$1,716$983$545$296$33
45 years$2,780$1,636$923$504$268$28
46 years$2,689$1,561$867$465$244$24
47 years$2,602$1,490$814$430$221$21
48 years$2,518$1,422$765$397$201$18
49 years$2,439$1,358$719$367$183$15
50 years$2,363$1,297$676$339$166$13

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 $5,148 every year, while hoping to spend $23,808 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: 73/20/7 Blend
39$2,420,000$2,420,000$2,420,000$2,420,000
40$2,672,150$2,543,890$2,506,380$2,864,210
41$2,919,378$2,643,209$2,565,012$3,090,828
42$3,191,025$2,746,597$2,624,811$3,335,443
43$3,489,557$2,854,228$2,685,789$3,602,664
44$3,817,690$2,966,283$2,747,962$3,894,714
45$4,178,417$3,082,954$2,811,341$4,214,043
46$4,575,035$3,204,438$2,875,941$4,563,346
47$5,011,177$3,330,943$2,941,772$4,945,588
48$5,490,843$3,462,686$3,008,848$5,364,036
49$6,018,444$3,599,892$3,077,179$5,822,285
50$6,598,838$3,742,799$3,146,777$6,324,294
51$7,237,377$3,891,654$3,217,652$6,874,422
52$7,939,958$4,046,715$3,289,812$7,477,467
53$8,713,081$4,208,251$3,363,268$8,138,715
54$9,563,905$4,376,544$3,438,027$8,863,985
55$10,500,318$4,551,890$3,514,096$9,659,686
56$11,531,014$4,734,596$3,591,482$10,532,877
57$12,665,570$4,924,984$3,670,189$11,491,329
58$13,914,540$5,123,390$3,750,223$12,543,605
59$15,289,554$5,330,167$3,831,585$13,699,133
60$16,803,424$5,545,680$3,914,279$14,968,299
61$18,470,271$5,770,316$3,998,305$16,362,543
62$20,305,652$6,004,475$4,083,661$17,894,464
63$22,326,711$6,248,577$4,170,347$19,577,942
64$24,552,340$6,503,062$4,258,358$21,428,266
65$27,003,355$6,768,388$4,347,689$23,462,278
66$29,702,693$7,045,035$4,438,333$25,698,532
67$32,675,632$7,333,506$4,530,281$28,157,465
68$35,950,022$7,634,324$4,623,522$30,861,593
69$39,556,558$7,948,039$4,718,042$33,835,722
70$43,529,058$8,275,224$4,813,828$37,107,177
71$47,904,792$8,616,480$4,910,861$40,706,065
72$52,724,827$8,972,434$5,009,122$44,665,554
73$58,034,419$9,343,743$5,108,587$49,022,186
74$63,883,437$9,731,094$5,209,232$53,816,220
75$70,326,834$10,135,204$5,311,028$59,092,014
76$77,425,167$10,556,825$5,413,943$64,898,439
77$85,245,168$10,996,743$5,517,944$71,289,340
78$93,860,371$11,455,779$5,622,991$78,324,043
79$103,351,811$11,934,795$5,729,044$86,067,915
80$113,808,786$12,434,689$5,836,056$94,592,977
81$125,329,697$12,956,404$5,943,979$103,978,584
82$138,022,982$13,500,924$6,052,758$114,312,173
83$152,008,136$14,069,279$6,162,335$125,690,084
84$167,416,840$14,662,548$6,272,648$138,218,473
85$184,394,204$15,281,860$6,383,629$152,014,307
86$203,100,137$15,928,394$6,495,203$167,206,466
87$223,710,852$16,603,387$6,607,294$183,936,964
88$246,420,537$17,308,131$6,719,817$202,362,281
89$271,443,183$18,043,980$6,832,681$222,654,841
90$299,014,602$18,812,350$6,945,791$245,004,638
91$329,394,659$19,614,722$7,059,042$269,621,026
92$362,869,719$20,452,649$7,172,325$296,734,691
93$399,755,355$21,327,753$7,285,523$326,599,832
94$440,399,323$22,241,735$7,398,510$359,496,552
95$485,184,847$23,196,373$7,511,152$395,733,505
96$534,534,235$24,193,529$7,623,310$435,650,800
97$588,912,867$25,235,152$7,734,831$479,623,215
98$648,833,589$26,323,284$7,845,557$528,063,732
99$714,861,549$27,460,059$7,955,318$581,427,426
100$787,619,540$28,647,715$8,063,934$640,215,765