Can I retire at age 40 with 2,440,000?

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 $2,440,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.9%
1 years$201,493$199,698$197,947$196,238$194,569$192,217
2 years$99,749$97,891$96,091$94,345$92,652$90,285
3 years$65,839$63,973$62,177$60,448$58,782$56,474
4 years$48,887$47,027$45,249$43,549$41,924$39,692
5 years$38,719$36,870$35,115$33,450$31,870$29,721
6 years$31,942$30,107$28,378$26,750$25,218$23,154
7 years$27,103$25,284$23,582$21,993$20,509$18,531
8 years$23,476$21,673$20,000$18,449$17,014$15,122
9 years$20,656$18,870$17,226$15,715$14,328$12,522
10 years$18,402$16,633$15,018$13,546$12,208$10,486
11 years$16,558$14,807$13,221$11,789$10,500$8,860
12 years$15,023$13,290$11,734$10,341$9,099$7,540
13 years$13,725$12,011$10,483$9,129$7,934$6,454
14 years$12,614$10,917$9,419$8,104$6,955$5,551
15 years$11,651$9,973$8,504$7,227$6,124$4,795
16 years$10,810$9,150$7,710$6,471$5,412$4,155
17 years$10,069$8,427$7,016$5,814$4,799$3,611
18 years$9,410$7,787$6,405$5,240$4,267$3,146
19 years$8,822$7,217$5,863$4,735$3,803$2,747
20 years$8,293$6,706$5,381$4,288$3,397$2,403
21 years$7,815$6,247$4,950$3,892$3,040$2,105
22 years$7,381$5,831$4,562$3,539$2,725$1,846
23 years$6,985$5,454$4,212$3,223$2,446$1,622
24 years$6,623$5,110$3,895$2,939$2,199$1,426
25 years$6,291$4,795$3,608$2,684$1,978$1,254
26 years$5,984$4,507$3,346$2,454$1,782$1,105
27 years$5,701$4,241$3,107$2,247$1,607$974
28 years$5,438$3,997$2,889$2,058$1,450$858
29 years$5,194$3,770$2,688$1,888$1,309$757
30 years$4,967$3,561$2,504$1,732$1,183$669
31 years$4,754$3,366$2,334$1,591$1,069$590
32 years$4,556$3,185$2,178$1,462$967$521
33 years$4,370$3,016$2,033$1,345$875$461
34 years$4,195$2,859$1,900$1,237$793$407
35 years$4,030$2,711$1,776$1,139$718$360
36 years$3,875$2,573$1,662$1,049$650$318
37 years$3,729$2,444$1,555$966$590$282
38 years$3,591$2,323$1,457$891$534$249
39 years$3,460$2,209$1,365$821$485$220
40 years$3,336$2,102$1,279$758$440$195
41 years$3,218$2,000$1,199$699$399$173
42 years$3,106$1,905$1,125$645$362$153
43 years$3,000$1,815$1,056$595$328$135
44 years$2,899$1,730$991$550$298$120
45 years$2,803$1,650$930$508$271$106
46 years$2,711$1,574$874$469$246$94
47 years$2,623$1,502$821$433$223$83
48 years$2,539$1,434$772$400$203$74
49 years$2,459$1,369$725$370$184$65
50 years$2,382$1,308$682$342$167$58

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,440,000, adding $4,686 every year, while hoping to spend $32,796 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: 48/26/26 Blend
39$2,440,000$2,440,000$2,440,000$2,440,000
40$2,693,714$2,564,394$2,526,574$2,802,855
41$2,933,578$2,655,154$2,576,319$2,970,652
42$3,196,809$2,749,263$2,626,632$3,149,155
43$3,485,756$2,846,849$2,677,496$3,342,359
44$3,803,005$2,948,047$2,728,895$3,551,666
45$4,151,408$3,052,998$2,780,810$3,778,617
46$4,534,104$3,161,847$2,833,219$4,024,905
47$4,954,551$3,274,746$2,886,100$4,292,397
48$5,416,560$3,391,853$2,939,429$4,583,144
49$5,924,328$3,513,333$2,993,179$4,899,405
50$6,482,480$3,639,356$3,047,321$5,243,664
51$7,096,110$3,770,102$3,101,823$5,618,657
52$7,770,831$3,905,755$3,156,652$6,027,394
53$8,512,828$4,046,509$3,211,772$6,473,190
54$9,328,913$4,192,565$3,267,144$6,959,693
55$10,226,595$4,344,133$3,322,725$7,490,921
56$11,214,143$4,501,431$3,378,472$8,071,295
57$12,300,671$4,664,687$3,434,336$8,705,685
58$13,496,219$4,834,136$3,490,266$9,399,454
59$14,811,851$5,010,026$3,546,207$10,158,506
60$16,259,756$5,192,614$3,602,102$10,989,344
61$17,853,366$5,382,167$3,657,887$11,899,128
62$19,607,481$5,578,964$3,713,498$12,895,746
63$21,538,406$5,783,297$3,768,863$13,987,884
64$23,664,112$5,995,466$3,823,908$15,185,109
65$26,004,397$6,215,789$3,878,554$16,497,958
66$28,581,076$6,444,594$3,932,717$17,938,040
67$31,418,191$6,682,224$3,986,307$19,518,139
68$34,542,229$6,929,035$4,039,231$21,252,341
69$37,982,379$7,185,401$4,091,388$23,156,158
70$41,770,806$7,451,710$4,142,674$25,246,682
71$45,942,950$7,728,365$4,192,975$27,542,741
72$50,537,865$8,015,790$4,242,174$30,065,077
73$55,598,588$8,314,424$4,290,147$32,836,539
74$61,172,538$8,624,725$4,336,762$35,882,302
75$67,311,972$8,947,172$4,381,879$39,230,100
76$74,074,474$9,282,264$4,425,352$42,910,490
77$81,523,496$9,630,521$4,467,027$46,957,136
78$89,728,962$9,992,485$4,506,742$51,407,129
79$98,767,922$10,368,723$4,544,323$56,301,335
80$108,725,284$10,759,824$4,579,592$61,684,778
81$119,694,612$11,166,405$4,612,358$67,607,069
82$131,779,012$11,589,108$4,642,421$74,122,867
83$145,092,100$12,028,604$4,669,571$81,292,398
84$159,759,080$12,485,590$4,693,587$89,182,020
85$175,917,920$12,960,798$4,714,237$97,864,851
86$193,720,660$13,454,989$4,731,275$107,421,455
87$213,334,841$13,968,958$4,744,447$117,940,604
88$234,945,091$14,503,533$4,753,482$129,520,111
89$258,754,864$15,059,580$4,758,097$142,267,758
90$284,988,363$15,638,002$4,757,997$156,302,305
91$313,892,655$16,239,744$4,752,869$171,754,614
92$345,740,003$16,865,788$4,742,387$188,768,882
93$380,830,434$17,517,162$4,726,208$207,504,002
94$419,494,576$18,194,940$4,703,973$228,135,057
95$462,096,772$18,900,242$4,675,305$250,854,976
96$509,038,525$19,634,236$4,639,811$275,876,350
97$560,762,285$20,398,144$4,597,075$303,433,441
98$617,755,626$21,193,242$4,546,665$333,784,388
99$680,555,850$22,020,860$4,488,128$367,213,643
100$749,755,054$22,882,390$4,420,988$404,034,654