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%11%
1 years$199,841$198,061$196,325$194,629$192,974$192,161
2 years$98,931$97,089$95,303$93,572$91,892$91,072
3 years$65,299$63,449$61,667$59,952$58,300$57,497
4 years$48,486$46,641$44,878$43,192$41,580$40,801
5 years$38,401$36,567$34,827$33,176$31,609$30,855
6 years$31,680$29,860$28,146$26,531$25,011$24,285
7 years$26,881$25,076$23,389$21,813$20,341$19,642
8 years$23,283$21,495$19,836$18,298$16,874$16,203
9 years$20,487$18,715$17,085$15,586$14,211$13,567
10 years$18,251$16,497$14,895$13,435$12,108$11,492
11 years$16,423$14,686$13,113$11,693$10,413$9,823
12 years$14,900$13,181$11,638$10,256$9,024$8,460
13 years$13,613$11,912$10,397$9,055$7,869$7,331
14 years$12,510$10,828$9,342$8,038$6,898$6,385
15 years$11,556$9,891$8,435$7,168$6,074$5,585
16 years$10,722$9,075$7,647$6,418$5,368$4,903
17 years$9,986$8,358$6,959$5,767$4,760$4,318
18 years$9,333$7,723$6,352$5,197$4,232$3,813
19 years$8,749$7,158$5,815$4,696$3,772$3,375
20 years$8,225$6,651$5,337$4,253$3,369$2,993
21 years$7,751$6,195$4,909$3,860$3,015$2,659
22 years$7,320$5,783$4,524$3,510$2,703$2,366
23 years$6,928$5,409$4,177$3,196$2,426$2,108
24 years$6,569$5,068$3,863$2,915$2,181$1,881
25 years$6,239$4,756$3,578$2,662$1,962$1,680
26 years$5,935$4,470$3,319$2,434$1,767$1,501
27 years$5,654$4,207$3,082$2,228$1,594$1,343
28 years$5,394$3,964$2,865$2,041$1,438$1,202
29 years$5,152$3,739$2,666$1,872$1,298$1,077
30 years$4,926$3,531$2,483$1,718$1,173$966
31 years$4,716$3,338$2,315$1,578$1,061$866
32 years$4,519$3,159$2,160$1,450$959$777
33 years$4,334$2,991$2,017$1,334$868$697
34 years$4,160$2,835$1,884$1,227$786$626
35 years$3,997$2,689$1,762$1,129$712$563
36 years$3,844$2,552$1,648$1,040$645$505
37 years$3,698$2,424$1,543$958$585$454
38 years$3,561$2,304$1,445$883$530$408
39 years$3,432$2,191$1,353$815$481$367
40 years$3,309$2,084$1,269$751$436$330
41 years$3,192$1,984$1,190$693$396$297
42 years$3,081$1,890$1,116$640$359$267
43 years$2,976$1,800$1,047$591$326$240
44 years$2,875$1,716$983$545$296$216
45 years$2,780$1,636$923$504$268$195
46 years$2,689$1,561$867$465$244$175
47 years$2,602$1,490$814$430$221$158
48 years$2,518$1,422$765$397$201$142
49 years$2,439$1,358$719$367$183$128
50 years$2,363$1,297$676$339$166$115

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 $3,935 every year, while hoping to spend $23,374 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: 86/9/5 Blend
39$2,420,000$2,420,000$2,420,000$2,420,000
40$2,670,899$2,542,639$2,505,129$2,900,387
41$2,918,461$2,642,359$2,564,181$3,150,186
42$3,190,491$2,746,181$2,624,428$3,420,983
43$3,489,460$2,854,283$2,685,885$3,717,779
44$3,818,090$2,966,848$2,748,567$4,043,173
45$4,179,380$3,084,069$2,812,490$4,400,026
46$4,576,636$3,206,147$2,877,667$4,791,489
47$5,013,496$3,333,292$2,944,113$5,221,034
48$5,493,973$3,465,723$3,011,840$5,692,483
49$6,022,485$3,603,670$3,080,864$6,210,046
50$6,603,902$3,747,373$3,151,196$6,778,361
51$7,243,587$3,897,081$3,222,848$7,402,537
52$7,947,451$4,053,057$3,295,832$8,088,201
53$8,722,008$4,215,574$3,370,160$8,841,552
54$9,574,434$4,384,918$3,445,840$9,669,418
55$10,512,634$4,561,387$3,522,884$10,579,320
56$11,545,321$4,745,293$3,601,299$11,579,547
57$12,682,095$4,936,964$3,681,094$12,679,226
58$13,933,534$5,136,740$3,762,275$13,888,416
59$15,311,291$5,344,977$3,844,849$15,218,196
60$16,828,211$5,562,049$3,928,819$16,680,772
61$18,498,444$5,788,345$4,014,191$18,289,595
62$20,337,585$6,024,273$4,100,965$20,059,480
63$22,362,815$6,270,260$4,189,144$22,006,752
64$24,593,069$6,526,749$4,278,727$24,149,398
65$27,049,210$6,794,208$4,369,713$26,507,234
66$29,754,229$7,073,123$4,462,097$29,102,096
67$32,733,458$7,364,004$4,555,875$31,958,038
68$36,014,814$7,667,383$4,651,040$35,101,569
69$39,629,058$7,983,818$4,747,583$38,561,894
70$43,610,089$8,313,892$4,845,494$42,371,193
71$47,995,259$8,658,213$4,944,759$46,564,924
72$52,825,729$9,017,420$5,045,363$51,182,156
73$58,146,859$9,392,179$5,147,288$56,265,937
74$64,008,631$9,783,188$5,250,514$61,863,703
75$70,466,123$10,191,176$5,355,018$68,027,720
76$77,580,031$10,616,907$5,460,775$74,815,582
77$85,417,238$11,061,180$5,567,754$82,290,749
78$94,051,447$11,524,828$5,675,925$90,523,150
79$103,563,878$12,008,728$5,785,252$99,589,836
80$114,044,031$12,513,793$5,895,695$109,575,716
81$125,590,533$13,040,980$6,007,212$120,574,348
82$138,312,070$13,591,291$6,119,756$132,688,828
83$152,328,410$14,165,773$6,233,277$146,032,759
84$167,771,535$14,765,523$6,347,719$160,731,323
85$184,786,886$15,391,688$6,463,021$176,922,465
86$203,534,736$16,045,468$6,579,120$194,758,188
87$224,191,704$16,728,121$6,695,946$214,405,992
88$246,952,420$17,440,961$6,813,422$236,050,454
89$272,031,363$18,185,364$6,931,468$259,894,965
90$299,664,887$18,962,773$7,049,998$286,163,654
91$330,113,450$19,774,693$7,168,917$315,103,501
92$363,664,073$20,622,704$7,288,127$346,986,665
93$400,633,050$21,508,457$7,407,520$382,113,054
94$441,368,932$22,433,683$7,526,983$420,813,157
95$486,255,821$23,400,191$7,646,395$463,451,158
96$535,716,990$24,409,877$7,765,625$510,428,375
97$590,218,886$25,464,723$7,884,536$562,187,050
98$650,275,527$26,566,809$8,002,982$619,214,515
99$716,453,356$27,718,307$8,120,807$682,047,799
100$789,376,589$28,921,496$8,237,845$751,278,691