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%19.5%
1 years$412,895$409,217$405,629$402,127$398,707$383,494
2 years$204,404$200,597$196,907$193,330$189,860$174,712
3 years$134,915$131,092$127,412$123,869$120,455$105,849
4 years$100,178$96,367$92,723$89,240$85,910$71,957
5 years$79,341$75,553$71,957$68,545$65,307$52,043
6 years$65,455$61,694$58,152$54,816$51,675$39,109
7 years$55,539$51,811$48,325$45,067$42,026$30,154
8 years$48,106$44,411$40,983$37,806$34,865$23,676
9 years$42,328$38,668$35,299$32,202$29,361$18,839
10 years$37,708$34,084$30,774$27,759$25,017$15,142
11 years$33,931$30,343$27,093$24,158$21,515$12,266
12 years$30,785$27,234$24,044$21,190$18,645$9,997
13 years$28,126$24,612$21,482$18,708$16,259$8,187
14 years$25,848$22,371$19,302$16,607$14,252$6,731
15 years$23,876$20,437$17,427$14,810$12,549$5,551
16 years$22,152$18,750$15,800$13,261$11,091$4,590
17 years$20,632$17,268$14,377$11,915$9,834$3,803
18 years$19,283$15,957$13,125$10,738$8,744$3,156
19 years$18,077$14,789$12,015$9,702$7,793$2,623
20 years$16,993$13,742$11,027$8,787$6,961$2,182
21 years$16,014$12,800$10,143$7,975$6,230$1,818
22 years$15,125$11,949$9,348$7,251$5,584$1,515
23 years$14,314$11,175$8,631$6,604$5,012$1,264
24 years$13,572$10,471$7,982$6,023$4,505$1,054
25 years$12,891$9,826$7,393$5,501$4,054$880
26 years$12,263$9,235$6,857$5,029$3,652$735
27 years$11,682$8,691$6,367$4,604$3,292$614
28 years$11,144$8,190$5,919$4,218$2,971$513
29 years$10,644$7,726$5,508$3,868$2,683$429
30 years$10,178$7,296$5,131$3,550$2,424$359
31 years$9,743$6,898$4,783$3,260$2,191$300
32 years$9,336$6,526$4,463$2,996$1,982$251
33 years$8,954$6,181$4,167$2,755$1,794$210
34 years$8,596$5,858$3,893$2,535$1,624$176
35 years$8,259$5,556$3,640$2,334$1,471$147
36 years$7,941$5,274$3,405$2,149$1,333$123
37 years$7,641$5,009$3,187$1,980$1,208$103
38 years$7,358$4,760$2,985$1,825$1,095$86
39 years$7,090$4,526$2,796$1,683$993$72
40 years$6,836$4,306$2,621$1,552$901$60
41 years$6,595$4,099$2,458$1,432$817$50
42 years$6,366$3,904$2,305$1,322$742$42
43 years$6,148$3,720$2,163$1,220$673$35
44 years$5,941$3,546$2,031$1,127$611$29
45 years$5,743$3,381$1,907$1,040$555$25
46 years$5,555$3,225$1,791$961$504$21
47 years$5,375$3,078$1,682$888$457$17
48 years$5,203$2,938$1,581$820$415$14
49 years$5,039$2,806$1,486$758$377$12
50 years$4,882$2,680$1,397$701$343$10

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 $5,054 every year, while hoping to spend $58,262 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: 49/44/7 Blend
39$5,000,000$5,000,000$5,000,000$5,000,000
40$5,515,213$5,250,213$5,172,713$5,775,228
41$6,015,775$5,445,483$5,284,009$6,148,667
42$6,565,441$5,648,369$5,397,080$6,547,444
43$7,169,158$5,859,182$5,511,925$6,979,200
44$7,832,378$6,078,247$5,628,540$7,447,026
45$8,561,102$6,305,903$5,746,918$7,954,322
46$9,361,946$6,542,504$5,867,051$8,504,822
47$10,242,196$6,788,418$5,988,928$9,102,629
48$11,209,879$7,044,029$6,112,537$9,752,255
49$12,273,839$7,309,740$6,237,859$10,458,659
50$13,443,821$7,585,967$6,364,878$11,227,296
51$14,730,560$7,873,149$6,493,571$12,064,161
52$16,145,884$8,171,739$6,623,911$12,975,851
53$17,702,823$8,482,214$6,755,872$13,969,620
54$19,415,738$8,805,069$6,889,420$15,053,447
55$21,300,447$9,140,821$7,024,520$16,236,112
56$23,374,383$9,490,011$7,161,131$17,527,274
57$25,656,750$9,853,202$7,299,209$18,937,560
58$28,168,711$10,230,982$7,438,706$20,478,666
59$30,933,585$10,623,965$7,579,567$22,163,463
60$33,977,062$11,032,792$7,721,735$24,006,115
61$37,327,455$11,458,130$7,865,145$26,022,214
62$41,015,956$11,900,680$8,009,729$28,228,923
63$45,076,940$12,361,169$8,155,410$30,645,132
64$49,548,280$12,840,359$8,302,109$33,291,639
65$54,471,712$13,339,044$8,449,737$36,191,342
66$59,893,224$13,858,054$8,598,201$39,369,449
67$65,863,490$14,398,256$8,747,397$42,853,715
68$72,438,349$14,960,554$8,897,219$46,674,704
69$79,679,333$15,545,893$9,047,548$50,866,068
70$87,654,244$16,155,261$9,198,259$55,464,867
71$96,437,795$16,789,687$9,349,220$60,511,911
72$106,112,318$17,450,249$9,500,286$66,052,144
73$116,768,535$18,138,072$9,651,306$72,135,062
74$128,506,418$18,854,330$9,802,117$78,815,180
75$141,436,131$19,600,250$9,952,546$86,152,537
76$155,679,069$20,377,115$10,102,409$94,213,265
77$171,369,005$21,186,265$10,251,512$103,070,202
78$188,653,352$22,029,100$10,399,645$112,803,580
79$207,694,549$22,907,082$10,546,589$123,501,772
80$228,671,604$23,821,739$10,692,110$135,262,128
81$251,781,772$24,774,669$10,835,960$148,191,881
82$277,242,426$25,767,542$10,977,878$162,409,161
83$305,293,103$26,802,100$11,117,587$178,044,099
84$336,197,765$27,880,169$11,254,791$195,240,048
85$370,247,293$29,003,653$11,389,183$214,154,937
86$407,762,229$30,174,544$11,520,433$234,962,749
87$449,095,805$31,394,925$11,648,195$257,855,158
88$494,637,273$32,666,972$11,772,106$283,043,331
89$544,815,582$33,992,962$11,891,779$310,759,916
90$600,103,426$35,375,271$12,006,808$341,261,226
91$661,021,705$36,816,389$12,116,765$374,829,654
92$728,144,441$38,318,914$12,221,200$411,776,331
93$802,104,200$39,885,567$12,319,636$452,444,049
94$883,598,059$41,519,190$12,411,574$497,210,493
95$973,394,187$43,222,757$12,496,488$546,491,794
96$1,072,339,098$44,999,376$12,573,824$600,746,448
97$1,181,365,639$46,852,298$12,643,000$660,479,633
98$1,301,501,798$48,784,924$12,703,404$726,247,968
99$1,433,880,405$50,800,810$12,754,392$798,664,755
100$1,579,749,832$52,903,675$12,795,290$878,405,757