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%12.2%
1 years$346,832$343,743$340,729$337,787$334,914$331,831
2 years$171,699$168,501$165,402$162,397$159,483$156,376
3 years$113,329$110,117$107,026$104,050$101,182$98,149
4 years$84,150$80,948$77,888$74,962$72,164$69,227
5 years$66,647$63,464$60,444$57,578$54,858$52,026
6 years$54,982$51,823$48,848$46,046$43,407$40,684
7 years$46,653$43,521$40,593$37,857$35,302$32,688
8 years$40,409$37,306$34,426$31,757$29,286$26,783
9 years$35,556$32,481$29,651$27,050$24,663$22,268
10 years$31,675$28,631$25,850$23,317$21,014$18,727
11 years$28,502$25,488$22,758$20,293$18,073$15,891
12 years$25,860$22,877$20,197$17,800$15,662$13,584
13 years$23,626$20,674$18,045$15,714$13,657$11,681
14 years$21,712$18,792$16,214$13,950$11,972$10,094
15 years$20,056$17,167$14,639$12,441$10,541$8,759
16 years$18,608$15,750$13,272$11,139$9,316$7,627
17 years$17,331$14,505$12,077$10,008$8,260$6,661
18 years$16,198$13,404$11,025$9,020$7,345$5,833
19 years$15,185$12,422$10,093$8,150$6,547$5,118
20 years$14,274$11,543$9,263$7,381$5,847$4,500
21 years$13,452$10,752$8,520$6,699$5,233$3,963
22 years$12,705$10,037$7,852$6,091$4,690$3,495
23 years$12,024$9,387$7,250$5,547$4,210$3,086
24 years$11,401$8,795$6,705$5,059$3,784$2,727
25 years$10,828$8,254$6,210$4,621$3,405$2,413
26 years$10,301$7,757$5,760$4,225$3,067$2,137
27 years$9,813$7,301$5,348$3,867$2,766$1,894
28 years$9,361$6,879$4,972$3,543$2,495$1,679
29 years$8,941$6,490$4,627$3,249$2,253$1,490
30 years$8,549$6,129$4,310$2,982$2,036$1,323
31 years$8,184$5,794$4,018$2,739$1,841$1,175
32 years$7,842$5,482$3,749$2,517$1,665$1,044
33 years$7,522$5,192$3,500$2,314$1,507$928
34 years$7,221$4,921$3,270$2,129$1,364$825
35 years$6,937$4,667$3,058$1,960$1,236$733
36 years$6,671$4,430$2,860$1,805$1,120$652
37 years$6,419$4,207$2,677$1,663$1,015$580
38 years$6,181$3,998$2,507$1,533$920$516
39 years$5,956$3,802$2,349$1,414$834$460
40 years$5,742$3,617$2,202$1,304$757$409
41 years$5,540$3,443$2,064$1,203$687$364
42 years$5,347$3,279$1,937$1,110$623$324
43 years$5,164$3,125$1,817$1,025$565$289
44 years$4,990$2,978$1,706$946$513$257
45 years$4,824$2,840$1,602$874$466$229
46 years$4,666$2,709$1,504$807$423$204
47 years$4,515$2,586$1,413$746$384$182
48 years$4,371$2,468$1,328$689$349$162
49 years$4,233$2,357$1,248$637$317$144
50 years$4,101$2,252$1,174$589$288$129

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 $6,233 every year, while hoping to spend $42,820 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: 74/18/8 Blend
39$4,200,000$4,200,000$4,200,000$4,200,000
40$4,634,829$4,412,229$4,347,129$4,971,589
41$5,062,022$4,582,868$4,447,198$5,364,972
42$5,531,353$4,760,434$4,549,184$5,789,787
43$6,047,075$4,945,219$4,653,106$6,253,960
44$6,613,874$5,137,532$4,758,982$6,761,373
45$7,236,912$5,337,694$4,866,830$7,316,296
46$7,921,874$5,546,038$4,976,667$7,923,431
47$8,675,027$5,762,916$5,088,507$8,587,956
48$9,503,273$5,988,692$5,202,365$9,315,569
49$10,414,217$6,223,748$5,318,254$10,112,545
50$11,416,237$6,468,482$5,436,186$10,985,795
51$12,518,567$6,723,311$5,556,172$11,942,925
52$13,731,377$6,988,670$5,678,220$12,992,313
53$15,065,875$7,265,012$5,802,338$14,143,187
54$16,534,410$7,552,814$5,928,532$15,405,705
55$18,150,588$7,852,569$6,056,806$16,791,058
56$19,929,400$8,164,797$6,187,161$18,311,569
57$21,887,366$8,490,040$6,319,598$19,980,812
58$24,042,687$8,828,861$6,454,114$21,813,736
59$26,415,420$9,181,854$6,590,706$23,826,809
60$29,027,663$9,549,635$6,729,365$26,038,168
61$31,903,767$9,932,850$6,870,081$28,467,792
62$35,070,566$10,332,174$7,012,844$31,137,689
63$38,557,626$10,748,313$7,157,636$34,072,103
64$42,397,526$11,182,003$7,304,439$37,297,739
65$46,626,168$11,634,015$7,453,232$40,844,017
66$51,283,110$12,105,154$7,603,988$44,743,348
67$56,411,943$12,596,263$7,756,678$49,031,436
68$62,060,704$13,108,222$7,911,269$53,747,616
69$68,282,322$13,641,952$8,067,723$58,935,224
70$75,135,125$14,198,414$8,225,998$64,642,003
71$82,683,387$14,778,615$8,386,048$70,920,553
72$90,997,932$15,383,607$8,547,820$77,828,825
73$100,156,807$16,014,490$8,711,258$85,430,667
74$110,246,016$16,672,414$8,876,300$93,796,427
75$121,360,331$17,358,583$9,042,877$103,003,610
76$133,604,185$18,074,255$9,210,914$113,137,614
77$147,092,664$18,820,745$9,380,332$124,292,528
78$161,952,585$19,599,430$9,551,041$136,572,023
79$178,323,696$20,411,750$9,722,949$150,090,325
80$196,359,996$21,259,209$9,895,951$164,973,294
81$216,231,189$22,143,384$10,069,939$181,359,608
82$238,124,282$23,065,921$10,244,793$199,402,069
83$262,245,351$24,028,544$10,420,386$219,269,044
84$288,821,490$25,033,055$10,596,582$241,146,053
85$318,102,949$26,081,342$10,773,235$265,237,514
86$350,365,500$27,175,378$10,950,188$291,768,674
87$385,913,036$28,317,226$11,127,274$320,987,728
88$425,080,444$29,509,049$11,304,316$353,168,163
89$468,236,762$30,753,105$11,481,124$388,611,335
90$515,788,665$32,051,761$11,657,495$427,649,309
91$568,184,303$33,407,491$11,833,215$470,647,992
92$625,917,529$34,822,885$12,008,055$518,010,582
93$689,532,565$36,300,655$12,181,773$570,181,374
94$759,629,135$37,843,635$12,354,111$627,649,946
95$836,868,129$39,454,796$12,524,796$690,955,778
96$921,977,841$41,137,243$12,693,539$760,693,344
97$1,015,760,841$42,894,229$12,860,033$837,517,712
98$1,119,101,558$44,729,157$13,023,955$922,150,732
99$1,232,974,620$46,645,589$13,184,961$1,015,387,841
100$1,358,454,063$48,647,254$13,342,689$1,118,105,567