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

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 $2,420,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.7%
1 years$199,841$198,061$196,325$194,629$192,974$190,800
2 years$98,931$97,089$95,303$93,572$91,892$89,704
3 years$65,299$63,449$61,667$59,952$58,300$56,165
4 years$48,486$46,641$44,878$43,192$41,580$39,515
5 years$38,401$36,567$34,827$33,176$31,609$29,619
6 years$31,680$29,860$28,146$26,531$25,011$23,100
7 years$26,881$25,076$23,389$21,813$20,341$18,508
8 years$23,283$21,495$19,836$18,298$16,874$15,121
9 years$20,487$18,715$17,085$15,586$14,211$12,536
10 years$18,251$16,497$14,895$13,435$12,108$10,510
11 years$16,423$14,686$13,113$11,693$10,413$8,891
12 years$14,900$13,181$11,638$10,256$9,024$7,576
13 years$13,613$11,912$10,397$9,055$7,869$6,494
14 years$12,510$10,828$9,342$8,038$6,898$5,593
15 years$11,556$9,891$8,435$7,168$6,074$4,837
16 years$10,722$9,075$7,647$6,418$5,368$4,197
17 years$9,986$8,358$6,959$5,767$4,760$3,653
18 years$9,333$7,723$6,352$5,197$4,232$3,187
19 years$8,749$7,158$5,815$4,696$3,772$2,787
20 years$8,225$6,651$5,337$4,253$3,369$2,441
21 years$7,751$6,195$4,909$3,860$3,015$2,142
22 years$7,320$5,783$4,524$3,510$2,703$1,882
23 years$6,928$5,409$4,177$3,196$2,426$1,655
24 years$6,569$5,068$3,863$2,915$2,181$1,457
25 years$6,239$4,756$3,578$2,662$1,962$1,284
26 years$5,935$4,470$3,319$2,434$1,767$1,133
27 years$5,654$4,207$3,082$2,228$1,594$1,000
28 years$5,394$3,964$2,865$2,041$1,438$883
29 years$5,152$3,739$2,666$1,872$1,298$780
30 years$4,926$3,531$2,483$1,718$1,173$690
31 years$4,716$3,338$2,315$1,578$1,061$610
32 years$4,519$3,159$2,160$1,450$959$540
33 years$4,334$2,991$2,017$1,334$868$478
34 years$4,160$2,835$1,884$1,227$786$423
35 years$3,997$2,689$1,762$1,129$712$375
36 years$3,844$2,552$1,648$1,040$645$332
37 years$3,698$2,424$1,543$958$585$294
38 years$3,561$2,304$1,445$883$530$261
39 years$3,432$2,191$1,353$815$481$231
40 years$3,309$2,084$1,269$751$436$205
41 years$3,192$1,984$1,190$693$396$181
42 years$3,081$1,890$1,116$640$359$161
43 years$2,976$1,800$1,047$591$326$143
44 years$2,875$1,716$983$545$296$126
45 years$2,780$1,636$923$504$268$112
46 years$2,689$1,561$867$465$244$99
47 years$2,602$1,490$814$430$221$88
48 years$2,518$1,422$765$397$201$78
49 years$2,439$1,358$719$367$183$69
50 years$2,363$1,297$676$339$166$62

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 $6,199 every year, while hoping to spend $45,836 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: 57/13/30 Blend
39$2,420,000$2,420,000$2,420,000$2,420,000
40$2,673,234$2,544,974$2,507,464$2,803,186
41$2,897,135$2,620,909$2,542,695$2,969,219
42$3,142,337$2,699,028$2,577,570$3,144,821
43$3,410,966$2,779,390$2,612,029$3,335,318
44$3,705,360$2,862,056$2,646,007$3,542,169
45$4,028,096$2,947,086$2,679,438$3,766,979
46$4,382,012$3,034,544$2,712,249$4,011,517
47$4,770,234$3,124,493$2,744,366$4,277,732
48$5,196,204$3,216,999$2,775,708$4,567,772
49$5,663,714$3,312,129$2,806,192$4,884,000
50$6,176,941$3,409,952$2,835,728$5,229,023
51$6,740,486$3,510,537$2,864,222$5,605,711
52$7,359,419$3,613,956$2,891,576$6,017,228
53$8,039,321$3,720,282$2,917,686$6,467,058
54$8,786,345$3,829,589$2,942,442$6,959,042
55$9,607,266$3,941,953$2,965,727$7,497,409
56$10,509,550$4,057,451$2,987,422$8,086,823
57$11,501,420$4,176,162$3,007,396$8,732,421
58$12,591,938$4,298,167$3,025,517$9,439,863
59$13,791,086$4,423,547$3,041,642$10,215,388
60$15,109,862$4,552,387$3,055,623$11,065,868
61$16,560,384$4,684,770$3,067,302$11,998,880
62$18,156,003$4,820,783$3,076,517$13,022,770
63$19,911,428$4,960,515$3,083,093$14,146,737
64$21,842,868$5,104,054$3,086,850$15,380,917
65$23,968,179$5,251,491$3,087,599$16,736,482
66$26,307,038$5,402,919$3,085,138$18,225,742
67$28,881,125$5,558,431$3,079,259$19,862,262
68$31,714,329$5,718,123$3,069,743$21,660,993
69$34,832,969$5,882,090$3,056,358$23,638,411
70$38,266,051$6,050,431$3,038,865$25,812,673
71$42,045,530$6,223,244$3,017,009$28,203,786
72$46,206,621$6,400,629$2,990,525$30,833,803
73$50,788,125$6,582,689$2,959,137$33,727,024
74$55,832,798$6,769,525$2,922,552$36,910,230
75$61,387,753$6,961,241$2,880,467$40,412,934
76$67,504,903$7,157,942$2,832,562$44,267,661
77$74,241,454$7,359,732$2,778,504$48,510,254
78$81,660,441$7,566,718$2,717,943$53,180,217
79$89,831,326$7,779,007$2,650,514$58,321,080
80$98,830,648$7,996,705$2,575,833$63,980,820
81$108,742,752$8,219,922$2,493,502$70,212,306
82$119,660,580$8,448,764$2,403,100$77,073,804
83$131,686,546$8,683,341$2,304,192$84,629,526
84$144,933,510$8,923,761$2,196,318$92,950,235
85$159,525,834$9,170,131$2,079,001$102,113,915
86$175,600,562$9,422,561$1,951,741$112,206,510
87$193,308,710$9,681,157$1,814,015$123,322,732
88$212,816,692$9,946,026$1,665,277$135,566,956
89$234,307,887$10,217,275$1,504,957$149,054,211
90$257,984,378$10,495,007$1,332,459$163,911,261
91$284,068,848$10,779,327$1,147,160$180,277,804
92$312,806,692$11,070,335$948,411$198,307,796
93$344,468,325$11,368,131$735,533$218,170,899
94$379,351,737$11,672,813$507,817$240,054,086
95$417,785,309$11,984,475$264,523$264,163,411
96$460,130,905$12,303,209$4,879$290,725,948
97$506,787,294$12,629,103$0$319,991,943
98$558,193,910$12,962,242$0$352,324,307
99$614,835,002$13,302,705$0$387,947,152
100$677,244,203$13,650,568$0$427,194,120