Can I retire at age 40 with 4,800,000?

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 $4,800,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.6%
1 years$396,380$392,849$389,404$386,042$382,759$373,961
2 years$196,227$192,573$189,031$185,597$182,266$173,451
3 years$129,519$125,849$122,316$118,914$115,637$107,081
4 years$96,171$92,512$89,014$85,671$82,473$74,241
5 years$76,168$72,531$69,079$65,803$62,695$54,809
6 years$62,836$59,227$55,826$52,623$49,608$42,078
7 years$53,318$49,738$46,392$43,265$40,345$33,171
8 years$46,182$42,635$39,344$36,294$33,470$26,650
9 years$40,635$37,121$33,887$30,914$28,187$21,715
10 years$36,200$32,721$29,543$26,648$24,016$17,886
11 years$32,574$29,129$26,009$23,192$20,655$14,858
12 years$29,554$26,145$23,083$20,342$17,899$12,426
13 years$27,001$23,627$20,623$17,959$15,608$10,448
14 years$24,814$21,477$18,530$15,942$13,682$8,825
15 years$22,921$19,619$16,730$14,218$12,047$7,481
16 years$21,266$18,000$15,168$12,730$10,647$6,362
17 years$19,807$16,578$13,802$11,438$9,440$5,423
18 years$18,512$15,318$12,600$10,308$8,394$4,633
19 years$17,354$14,197$11,534$9,314$7,482$3,966
20 years$16,314$13,193$10,586$8,436$6,683$3,399
21 years$15,373$12,288$9,737$7,656$5,980$2,918
22 years$14,520$11,471$8,974$6,961$5,361$2,507
23 years$13,742$10,728$8,286$6,340$4,812$2,156
24 years$13,029$10,052$7,663$5,782$4,325$1,856
25 years$12,375$9,433$7,098$5,281$3,892$1,599
26 years$11,772$8,866$6,583$4,828$3,506$1,378
27 years$11,215$8,344$6,113$4,419$3,161$1,188
28 years$10,698$7,862$5,682$4,049$2,852$1,025
29 years$10,218$7,417$5,288$3,713$2,575$885
30 years$9,771$7,005$4,926$3,408$2,327$764
31 years$9,353$6,622$4,592$3,130$2,104$659
32 years$8,962$6,265$4,284$2,876$1,903$570
33 years$8,596$5,933$4,000$2,645$1,722$492
34 years$8,252$5,624$3,738$2,434$1,559$425
35 years$7,928$5,334$3,494$2,240$1,412$367
36 years$7,624$5,063$3,269$2,063$1,280$318
37 years$7,336$4,808$3,060$1,901$1,160$275
38 years$7,064$4,570$2,865$1,752$1,051$237
39 years$6,806$4,345$2,684$1,616$953$205
40 years$6,562$4,134$2,516$1,490$865$177
41 years$6,331$3,935$2,359$1,375$785$153
42 years$6,111$3,748$2,213$1,269$712$133
43 years$5,902$3,571$2,077$1,171$646$115
44 years$5,703$3,404$1,949$1,082$586$99
45 years$5,513$3,246$1,830$999$532$86
46 years$5,333$3,096$1,719$923$483$74
47 years$5,160$2,955$1,615$852$439$64
48 years$4,995$2,821$1,518$788$399$56
49 years$4,837$2,694$1,427$728$362$48
50 years$4,686$2,573$1,341$673$329$42

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $4,800,000, adding $5,261 every year, while hoping to spend $48,417 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: 53/26/21 Blend
39$4,800,000$4,800,000$4,800,000$4,800,000
40$5,295,027$5,040,627$4,966,227$5,544,838
41$5,783,604$5,236,102$5,081,080$5,912,642
42$6,320,394$5,439,533$5,198,158$6,307,173
43$6,910,262$5,651,258$5,317,485$6,735,459
44$7,558,570$5,871,631$5,439,082$7,200,733
45$8,271,225$6,101,022$5,562,972$7,706,550
46$9,054,733$6,339,816$5,689,175$8,256,821
47$9,916,265$6,588,415$5,817,711$8,855,846
48$10,863,718$6,847,241$5,948,598$9,508,359
49$11,905,795$7,116,734$6,081,854$10,219,566
50$13,052,084$7,397,352$6,217,494$10,995,196
51$14,313,149$7,689,575$6,355,533$11,841,552
52$15,700,631$7,993,904$6,495,983$12,765,574
53$17,227,353$8,310,863$6,638,856$13,774,895
54$18,907,446$8,640,999$6,784,161$14,877,922
55$20,756,480$8,984,882$6,931,905$16,083,904
56$22,791,610$9,343,111$7,082,094$17,403,027
57$25,031,740$9,716,309$7,234,729$18,846,501
58$27,497,698$10,105,129$7,389,813$20,426,671
59$30,212,434$10,510,251$7,547,343$22,157,125
60$33,201,238$10,932,388$7,707,314$24,052,828
61$36,491,974$11,372,285$7,869,719$26,130,256
62$40,115,347$11,830,720$8,034,547$28,407,554
63$44,105,193$12,308,505$8,201,784$30,904,700
64$48,498,792$12,806,491$8,371,413$33,643,699
65$53,337,227$13,325,567$8,543,413$36,648,782
66$58,665,766$13,866,662$8,717,760$39,946,638
67$64,534,292$14,430,747$8,894,423$43,566,661
68$70,997,774$15,018,837$9,073,370$47,541,224
69$78,116,782$15,631,995$9,254,563$51,905,986
70$85,958,061$16,271,331$9,437,959$56,700,225
71$94,595,162$16,938,005$9,623,509$61,967,205
72$104,109,133$17,633,232$9,811,161$67,754,582
73$114,589,285$18,358,280$10,000,855$74,114,852
74$126,134,035$19,114,478$10,192,526$81,105,847
75$138,851,833$19,903,214$10,386,102$88,791,270
76$152,862,188$20,725,940$10,581,505$97,241,302
77$168,296,795$21,584,175$10,778,650$106,533,255
78$185,300,776$22,479,507$10,977,442$116,752,304
79$204,034,050$23,413,599$11,177,782$127,992,283
80$224,672,846$24,388,187$11,379,560$140,356,569
81$247,411,359$25,405,091$11,582,658$153,959,056
82$272,463,590$26,466,213$11,786,949$168,925,225
83$300,065,361$27,573,542$11,992,297$185,393,324
84$330,476,543$28,729,161$12,198,554$203,515,668
85$363,983,507$29,935,247$12,405,563$223,460,076
86$400,901,831$31,194,080$12,613,154$245,411,450
87$441,579,271$32,508,043$12,821,149$269,573,512
88$486,399,052$33,879,633$13,029,353$296,170,727
89$535,783,480$35,311,459$13,237,560$325,450,415
90$590,197,929$36,806,254$13,445,552$357,685,081
91$650,155,234$38,366,878$13,653,095$393,174,981
92$716,220,533$39,996,320$13,859,939$432,250,951
93$789,016,602$41,697,714$14,065,821$475,277,527
94$869,229,728$43,474,335$14,270,460$522,656,377
95$957,616,197$45,329,614$14,473,557$574,830,085
96$1,055,009,425$47,267,141$14,674,796$632,286,330
97$1,162,327,827$49,290,672$14,873,843$695,562,474
98$1,280,583,491$51,404,140$15,070,342$765,250,632
99$1,410,891,727$53,611,662$15,263,918$842,003,254
100$1,554,481,597$55,917,548$15,454,174$926,539,277