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

Use the below retirement simulation to view the chances of a successful retirement.
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%12.9%
1 years$412,895$409,217$405,629$402,127$398,707$393,888
2 years$204,404$200,597$196,907$193,330$189,860$185,011
3 years$134,915$131,092$127,412$123,869$120,455$115,726
4 years$100,178$96,367$92,723$89,240$85,910$81,336
5 years$79,341$75,553$71,957$68,545$65,307$60,903
6 years$65,455$61,694$58,152$54,816$51,675$47,447
7 years$55,539$51,811$48,325$45,067$42,026$37,974
8 years$48,106$44,411$40,983$37,806$34,865$30,989
9 years$42,328$38,668$35,299$32,202$29,361$25,660
10 years$37,708$34,084$30,774$27,759$25,017$21,488
11 years$33,931$30,343$27,093$24,158$21,515$18,156
12 years$30,785$27,234$24,044$21,190$18,645$15,450
13 years$28,126$24,612$21,482$18,708$16,259$13,225
14 years$25,848$22,371$19,302$16,607$14,252$11,376
15 years$23,876$20,437$17,427$14,810$12,549$9,825
16 years$22,152$18,750$15,800$13,261$11,091$8,514
17 years$20,632$17,268$14,377$11,915$9,834$7,400
18 years$19,283$15,957$13,125$10,738$8,744$6,447
19 years$18,077$14,789$12,015$9,702$7,793$5,629
20 years$16,993$13,742$11,027$8,787$6,961$4,923
21 years$16,014$12,800$10,143$7,975$6,230$4,313
22 years$15,125$11,949$9,348$7,251$5,584$3,783
23 years$14,314$11,175$8,631$6,604$5,012$3,323
24 years$13,572$10,471$7,982$6,023$4,505$2,921
25 years$12,891$9,826$7,393$5,501$4,054$2,571
26 years$12,263$9,235$6,857$5,029$3,652$2,264
27 years$11,682$8,691$6,367$4,604$3,292$1,995
28 years$11,144$8,190$5,919$4,218$2,971$1,759
29 years$10,644$7,726$5,508$3,868$2,683$1,552
30 years$10,178$7,296$5,131$3,550$2,424$1,370
31 years$9,743$6,898$4,783$3,260$2,191$1,210
32 years$9,336$6,526$4,463$2,996$1,982$1,069
33 years$8,954$6,181$4,167$2,755$1,794$944
34 years$8,596$5,858$3,893$2,535$1,624$835
35 years$8,259$5,556$3,640$2,334$1,471$738
36 years$7,941$5,274$3,405$2,149$1,333$652
37 years$7,641$5,009$3,187$1,980$1,208$577
38 years$7,358$4,760$2,985$1,825$1,095$510
39 years$7,090$4,526$2,796$1,683$993$452
40 years$6,836$4,306$2,621$1,552$901$400
41 years$6,595$4,099$2,458$1,432$817$354
42 years$6,366$3,904$2,305$1,322$742$313
43 years$6,148$3,720$2,163$1,220$673$277
44 years$5,941$3,546$2,031$1,127$611$245
45 years$5,743$3,381$1,907$1,040$555$217
46 years$5,555$3,225$1,791$961$504$192
47 years$5,375$3,078$1,682$888$457$170
48 years$5,203$2,938$1,581$820$415$151
49 years$5,039$2,806$1,486$758$377$133
50 years$4,882$2,680$1,397$701$343$118

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 $5,424 every year, while hoping to spend $41,009 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: 80/9/11 Blend
39$5,000,000$5,000,000$5,000,000$5,000,000
40$5,515,595$5,250,595$5,173,095$5,945,859
41$6,034,552$5,464,241$5,302,760$6,442,698
42$6,605,069$5,686,981$5,435,395$6,981,896
43$7,232,360$5,919,217$5,571,055$7,572,392
44$7,922,173$6,161,371$5,709,798$8,219,297
45$8,680,839$6,413,882$5,851,680$8,928,241
46$9,515,332$6,677,210$5,996,759$9,705,424
47$10,433,339$6,951,836$6,145,093$10,557,673
48$11,443,326$7,238,263$6,296,741$11,492,508
49$12,554,625$7,537,017$6,451,761$12,518,211
50$13,777,515$7,848,649$6,610,213$13,643,904
51$15,123,322$8,173,734$6,772,156$14,879,632
52$16,604,528$8,512,874$6,937,650$16,236,464
53$18,234,883$8,866,698$7,106,755$17,726,588
54$20,029,540$9,235,866$7,279,530$19,363,431
55$22,005,196$9,621,065$7,456,037$21,161,787
56$24,180,246$10,023,018$7,636,335$23,137,947
57$26,574,964$10,442,478$7,820,484$25,309,862
58$29,211,684$10,880,234$8,008,544$27,697,306
59$32,115,022$11,337,111$8,200,576$30,322,062
60$35,312,098$11,813,973$8,396,640$33,208,130
61$38,832,798$12,311,724$8,596,793$36,381,948
62$42,710,054$12,831,309$8,801,096$39,872,647
63$46,980,154$13,373,717$9,009,607$43,712,316
64$51,683,084$13,939,984$9,222,384$47,936,314
65$56,862,909$14,531,194$9,439,484$52,583,596
66$62,568,182$15,148,479$9,660,963$57,697,082
67$68,852,409$15,793,027$9,886,878$63,324,059
68$75,774,549$16,466,079$10,117,282$69,516,629
69$83,399,571$17,168,935$10,352,229$76,332,201
70$91,799,070$17,902,956$10,591,772$83,834,024
71$101,051,940$18,669,565$10,835,961$92,091,794
72$111,245,117$19,470,254$11,084,845$101,182,299
73$122,474,404$20,306,581$11,338,472$111,190,151
74$134,845,370$21,180,180$11,596,887$122,208,582
75$148,474,349$22,092,760$11,860,135$134,340,317
76$163,489,539$23,046,112$12,128,256$147,698,550
77$180,032,209$24,042,108$12,401,289$162,408,005
78$198,258,034$25,082,711$12,679,272$178,606,114
79$218,338,562$26,169,973$12,962,236$196,444,313
80$240,462,838$27,306,044$13,250,214$216,089,471
81$264,839,183$28,493,176$13,543,231$237,725,459
82$291,697,163$29,733,725$13,841,313$261,554,888
83$321,289,755$31,030,158$14,144,478$287,801,018
84$353,895,735$32,385,061$14,452,743$316,709,865
85$389,822,309$33,801,139$14,766,120$348,552,519
86$429,408,015$35,281,224$15,084,614$383,627,702
87$473,025,912$36,828,284$15,408,229$422,264,586
88$521,087,111$38,445,426$15,736,961$464,825,899
89$574,044,648$40,135,904$16,070,800$511,711,344
90$632,397,763$41,903,124$16,409,733$563,361,371
91$696,696,614$43,750,656$16,753,738$620,261,335
92$767,547,467$45,682,236$17,102,787$682,946,070
93$845,618,423$47,701,780$17,456,844$752,004,941
94$931,645,721$49,813,386$17,815,868$828,087,398
95$1,026,440,692$52,021,349$18,179,806$911,909,110
96$1,130,897,413$54,330,167$18,548,601$1,004,258,716
97$1,246,001,153$56,744,548$18,922,183$1,106,005,264
98$1,372,837,669$59,269,430$19,300,474$1,218,106,416
99$1,512,603,458$61,909,978$19,683,387$1,341,617,484
100$1,666,617,052$64,671,609$20,070,822$1,477,701,385