Can I retire at age 40 with 4,200,000?

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 $4,200,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$346,832$343,743$340,729$337,787$334,914$326,817
2 years$171,699$168,501$165,402$162,397$159,483$151,374
3 years$113,329$110,117$107,026$104,050$101,182$93,316
4 years$84,150$80,948$77,888$74,962$72,164$64,599
5 years$66,647$63,464$60,444$57,578$54,858$47,616
6 years$54,982$51,823$48,848$46,046$43,407$36,496
7 years$46,653$43,521$40,593$37,857$35,302$28,722
8 years$40,409$37,306$34,426$31,757$29,286$23,035
9 years$35,556$32,481$29,651$27,050$24,663$18,736
10 years$31,675$28,631$25,850$23,317$21,014$15,403
11 years$28,502$25,488$22,758$20,293$18,073$12,771
12 years$25,860$22,877$20,197$17,800$15,662$10,659
13 years$23,626$20,674$18,045$15,714$13,657$8,945
14 years$21,712$18,792$16,214$13,950$11,972$7,540
15 years$20,056$17,167$14,639$12,441$10,541$6,379
16 years$18,608$15,750$13,272$11,139$9,316$5,413
17 years$17,331$14,505$12,077$10,008$8,260$4,604
18 years$16,198$13,404$11,025$9,020$7,345$3,925
19 years$15,185$12,422$10,093$8,150$6,547$3,352
20 years$14,274$11,543$9,263$7,381$5,847$2,867
21 years$13,452$10,752$8,520$6,699$5,233$2,455
22 years$12,705$10,037$7,852$6,091$4,690$2,104
23 years$12,024$9,387$7,250$5,547$4,210$1,806
24 years$11,401$8,795$6,705$5,059$3,784$1,550
25 years$10,828$8,254$6,210$4,621$3,405$1,332
26 years$10,301$7,757$5,760$4,225$3,067$1,146
27 years$9,813$7,301$5,348$3,867$2,766$985
28 years$9,361$6,879$4,972$3,543$2,495$848
29 years$8,941$6,490$4,627$3,249$2,253$730
30 years$8,549$6,129$4,310$2,982$2,036$629
31 years$8,184$5,794$4,018$2,739$1,841$542
32 years$7,842$5,482$3,749$2,517$1,665$467
33 years$7,522$5,192$3,500$2,314$1,507$402
34 years$7,221$4,921$3,270$2,129$1,364$347
35 years$6,937$4,667$3,058$1,960$1,236$299
36 years$6,671$4,430$2,860$1,805$1,120$258
37 years$6,419$4,207$2,677$1,663$1,015$222
38 years$6,181$3,998$2,507$1,533$920$191
39 years$5,956$3,802$2,349$1,414$834$165
40 years$5,742$3,617$2,202$1,304$757$142
41 years$5,540$3,443$2,064$1,203$687$123
42 years$5,347$3,279$1,937$1,110$623$106
43 years$5,164$3,125$1,817$1,025$565$91
44 years$4,990$2,978$1,706$946$513$79
45 years$4,824$2,840$1,602$874$466$68
46 years$4,666$2,709$1,504$807$423$59
47 years$4,515$2,586$1,413$746$384$51
48 years$4,371$2,468$1,328$689$349$44
49 years$4,233$2,357$1,248$637$317$38
50 years$4,101$2,252$1,174$589$288$32

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $4,200,000, adding $3,602 every year, while hoping to spend $40,985 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: 34/48/18 Blend
39$4,200,000$4,200,000$4,200,000$4,200,000
40$4,632,115$4,409,515$4,344,415$4,763,793
41$5,060,984$4,581,974$4,446,346$5,033,319
42$5,532,222$4,761,509$4,550,317$5,319,713
43$6,050,111$4,948,425$4,656,354$5,627,688
44$6,619,362$5,143,038$4,764,482$5,959,176
45$7,245,170$5,345,679$4,874,725$6,316,293
46$7,933,255$5,556,695$4,987,106$6,701,361
47$8,689,920$5,776,447$5,101,647$7,116,929
48$9,522,111$6,005,312$5,218,371$7,565,793
49$10,437,478$6,243,684$5,337,299$8,051,022
50$11,444,453$6,491,976$5,458,450$8,575,986
51$12,552,323$6,750,619$5,581,844$9,144,386
52$13,771,323$7,020,062$5,707,498$9,760,286
53$15,112,728$7,300,775$5,835,430$10,428,152
54$16,588,964$7,593,251$5,965,655$11,152,889
55$18,213,720$7,898,002$6,098,186$11,939,888
56$20,002,080$8,215,565$6,233,036$12,795,073
57$21,970,667$8,546,502$6,370,217$13,724,956
58$24,137,792$8,891,398$6,509,737$14,736,697
59$26,523,638$9,250,867$6,651,604$15,838,166
60$29,150,438$9,625,550$6,795,822$17,038,019
61$32,042,697$10,016,115$6,942,396$18,345,774
62$35,227,411$10,423,264$7,091,325$19,771,900
63$38,734,332$10,847,729$7,242,609$21,327,912
64$42,596,241$11,290,274$7,396,244$23,026,478
65$46,849,261$11,751,702$7,552,222$24,881,534
66$51,533,198$12,232,847$7,710,533$26,908,414
67$56,691,913$12,734,586$7,871,166$29,123,991
68$62,373,741$13,257,834$8,034,103$31,546,833
69$68,631,942$13,803,547$8,199,324$34,197,373
70$75,525,206$14,372,727$8,366,808$37,098,102
71$83,118,207$14,966,419$8,536,525$40,273,773
72$91,482,210$15,585,720$8,708,445$43,751,634
73$100,695,749$16,231,774$8,882,531$47,561,680
74$110,845,363$16,905,779$9,058,744$51,736,931
75$122,026,415$17,608,987$9,237,037$56,313,740
76$134,343,991$18,342,709$9,417,360$61,332,132
77$147,913,893$19,108,317$9,599,656$66,836,176
78$162,863,730$19,907,244$9,783,864$72,874,394
79$179,334,123$20,740,991$9,969,915$79,500,218
80$197,480,031$21,611,128$10,157,736$86,772,485
81$217,472,218$22,519,297$10,347,244$94,755,989
82$239,498,859$23,467,217$10,538,351$103,522,084
83$263,767,318$24,456,686$10,730,961$113,149,354
84$290,506,106$25,489,585$10,924,970$123,724,345
85$319,967,039$26,567,885$11,120,266$135,342,378
86$352,427,609$27,693,643$11,316,728$148,108,440
87$388,193,612$28,869,019$11,514,224$162,138,167
88$427,602,026$30,096,266$11,712,617$177,558,930
89$471,024,197$31,377,748$11,911,754$194,511,025
90$518,869,343$32,715,935$12,111,475$213,148,993
91$571,588,415$34,113,415$12,311,609$233,643,069
92$629,678,356$35,572,895$12,511,971$256,180,774
93$693,686,791$37,097,209$12,712,364$280,968,686
94$764,217,195$38,689,324$12,912,579$308,234,368
95$841,934,592$40,352,344$13,112,394$338,228,514
96$927,571,832$42,089,521$13,311,571$371,227,302
97$1,021,936,508$43,904,256$13,509,857$407,534,987
98$1,125,918,580$45,800,112$13,706,985$447,486,764
99$1,240,498,776$47,780,819$13,902,671$491,451,918
100$1,366,757,852$49,850,280$14,096,611$539,837,295