Can I retire at age 40 with 5,000,000?

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 $5,000,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.3%
1 years$412,895$409,217$405,629$402,127$398,707$393,236
2 years$204,404$200,597$196,907$193,330$189,860$184,358
3 years$134,915$131,092$127,412$123,869$120,455$115,093
4 years$100,178$96,367$92,723$89,240$85,910$80,728
5 years$79,341$75,553$71,957$68,545$65,307$60,322
6 years$65,455$61,694$58,152$54,816$51,675$46,892
7 years$55,539$51,811$48,325$45,067$42,026$37,446
8 years$48,106$44,411$40,983$37,806$34,865$30,488
9 years$42,328$38,668$35,299$32,202$29,361$25,186
10 years$37,708$34,084$30,774$27,759$25,017$21,040
11 years$33,931$30,343$27,093$24,158$21,515$17,733
12 years$30,785$27,234$24,044$21,190$18,645$15,052
13 years$28,126$24,612$21,482$18,708$16,259$12,851
14 years$25,848$22,371$19,302$16,607$14,252$11,024
15 years$23,876$20,437$17,427$14,810$12,549$9,495
16 years$22,152$18,750$15,800$13,261$11,091$8,206
17 years$20,632$17,268$14,377$11,915$9,834$7,112
18 years$19,283$15,957$13,125$10,738$8,744$6,178
19 years$18,077$14,789$12,015$9,702$7,793$5,378
20 years$16,993$13,742$11,027$8,787$6,961$4,690
21 years$16,014$12,800$10,143$7,975$6,230$4,097
22 years$15,125$11,949$9,348$7,251$5,584$3,583
23 years$14,314$11,175$8,631$6,604$5,012$3,137
24 years$13,572$10,471$7,982$6,023$4,505$2,749
25 years$12,891$9,826$7,393$5,501$4,054$2,412
26 years$12,263$9,235$6,857$5,029$3,652$2,117
27 years$11,682$8,691$6,367$4,604$3,292$1,860
28 years$11,144$8,190$5,919$4,218$2,971$1,635
29 years$10,644$7,726$5,508$3,868$2,683$1,438
30 years$10,178$7,296$5,131$3,550$2,424$1,265
31 years$9,743$6,898$4,783$3,260$2,191$1,113
32 years$9,336$6,526$4,463$2,996$1,982$980
33 years$8,954$6,181$4,167$2,755$1,794$863
34 years$8,596$5,858$3,893$2,535$1,624$760
35 years$8,259$5,556$3,640$2,334$1,471$670
36 years$7,941$5,274$3,405$2,149$1,333$590
37 years$7,641$5,009$3,187$1,980$1,208$520
38 years$7,358$4,760$2,985$1,825$1,095$459
39 years$7,090$4,526$2,796$1,683$993$404
40 years$6,836$4,306$2,621$1,552$901$357
41 years$6,595$4,099$2,458$1,432$817$315
42 years$6,366$3,904$2,305$1,322$742$277
43 years$6,148$3,720$2,163$1,220$673$245
44 years$5,941$3,546$2,031$1,127$611$216
45 years$5,743$3,381$1,907$1,040$555$190
46 years$5,555$3,225$1,791$961$504$168
47 years$5,375$3,078$1,682$888$457$148
48 years$5,203$2,938$1,581$820$415$131
49 years$5,039$2,806$1,486$758$377$115
50 years$4,882$2,680$1,397$701$343$102

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $5,000,000, adding $2,267 every year, while hoping to spend $48,895 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: 66/10/24 Blend
39$5,000,000$5,000,000$5,000,000$5,000,000
40$5,512,338$5,247,338$5,169,838$5,841,819
41$6,022,573$5,452,434$5,291,004$6,268,854
42$6,583,213$5,665,941$5,414,590$6,729,801
43$7,199,348$5,888,219$5,540,626$7,232,643
44$7,876,584$6,119,645$5,669,140$7,781,504
45$8,621,101$6,360,612$5,800,161$8,380,926
46$9,439,703$6,611,532$5,933,716$9,035,909
47$10,339,888$6,872,833$6,069,832$9,751,958
48$11,329,919$7,144,964$6,208,533$10,535,136
49$12,418,897$7,428,393$6,349,845$11,392,117
50$13,616,850$7,723,610$6,493,790$12,330,253
51$14,934,828$8,031,126$6,640,392$13,357,641
52$16,385,005$8,351,476$6,789,670$14,483,194
53$17,980,795$8,685,218$6,941,643$15,716,734
54$19,736,978$9,032,936$7,096,330$17,069,077
55$21,669,840$9,395,239$7,253,747$18,552,133
56$23,797,323$9,772,766$7,413,907$20,179,026
57$26,139,200$10,166,181$7,576,823$21,964,209
58$28,717,257$10,576,183$7,742,505$23,923,602
59$31,555,500$11,003,498$7,910,962$26,074,745
60$34,680,379$11,448,888$8,082,197$28,436,956
61$38,121,042$11,913,147$8,256,215$31,031,521
62$41,909,605$12,397,109$8,433,015$33,881,884
63$46,081,458$12,901,641$8,612,595$37,013,877
64$50,675,598$13,427,653$8,794,948$40,455,957
65$55,734,997$13,976,095$8,980,066$44,239,475
66$61,307,004$14,547,961$9,167,936$48,398,973
67$67,443,798$15,144,291$9,358,541$52,972,504
68$74,202,874$15,766,170$9,551,861$58,001,996
69$81,647,590$16,414,735$9,747,872$63,533,644
70$89,847,762$17,091,175$9,946,543$69,618,343
71$98,880,323$17,796,732$10,147,842$76,312,172
72$108,830,050$18,532,706$10,351,728$83,676,916
73$119,790,364$19,300,456$10,558,159$91,780,656
74$131,864,208$20,101,406$10,767,085$100,698,400
75$145,165,024$20,937,041$10,978,449$110,512,800
76$159,817,819$21,808,919$11,192,189$121,314,925
77$175,960,347$22,718,666$11,408,238$133,205,119
78$193,744,407$23,667,986$11,626,520$146,293,950
79$213,337,280$24,658,660$11,846,951$160,703,250
80$234,923,300$25,692,552$12,069,441$176,567,263
81$258,705,601$26,771,612$12,293,892$194,033,913
82$284,908,030$27,897,879$12,520,195$213,266,197
83$313,777,263$29,073,489$12,748,236$234,443,721
84$345,585,129$30,300,675$12,977,887$257,764,397
85$380,631,179$31,581,775$13,209,013$283,446,304
86$419,245,511$32,919,234$13,441,467$311,729,753
87$461,791,889$34,315,612$13,675,091$342,879,543
88$508,671,172$35,773,587$13,909,718$377,187,470
89$560,325,103$37,295,964$14,145,164$414,975,069
90$617,240,472$38,885,675$14,381,236$456,596,654
91$679,953,719$40,545,792$14,617,726$502,442,659
92$749,055,990$42,279,528$14,854,412$552,943,320
93$825,198,724$44,090,247$15,091,057$608,572,735
94$909,099,796$45,981,471$15,327,409$669,853,336
95$1,001,550,297$47,956,885$15,563,200$737,360,822
96$1,103,422,002$50,020,348$15,798,142$811,729,585
97$1,215,675,599$52,175,898$16,031,933$893,658,702
98$1,339,369,756$54,427,763$16,264,249$983,918,527
99$1,475,671,118$56,780,370$16,494,747$1,083,357,966
100$1,625,865,316$59,238,352$16,723,066$1,192,912,479