Can I retire at age 40 with 5,400,000?

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 $5,400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.9%
1 years$445,927$441,955$438,080$434,297$430,604$423,644
2 years$220,756$216,645$212,660$208,797$205,049$198,057
3 years$145,709$141,580$137,605$133,778$130,092$123,284
4 years$108,192$104,076$100,141$96,380$92,783$86,212
5 years$85,689$81,597$77,714$74,029$70,532$64,218
6 years$70,691$66,630$62,804$59,201$55,809$49,759
7 years$59,983$55,956$52,191$48,673$45,388$39,602
8 years$51,955$47,964$44,262$40,830$37,654$32,132
9 years$45,714$41,762$38,123$34,778$31,710$26,450
10 years$40,725$36,811$33,236$29,979$27,018$22,015
11 years$36,645$32,771$29,261$26,091$23,237$18,485
12 years$33,248$29,413$25,968$22,885$20,136$15,630
13 years$30,376$26,581$23,201$20,204$17,559$13,292
14 years$27,916$24,161$20,846$17,935$15,392$11,357
15 years$25,786$22,072$18,821$15,995$13,553$9,742
16 years$23,924$20,250$17,064$14,322$11,978$8,384
17 years$22,283$18,650$15,528$12,868$10,620$7,235
18 years$20,826$17,233$14,175$11,597$9,443$6,258
19 years$19,523$15,972$12,976$10,479$8,417$5,424
20 years$18,353$14,842$11,909$9,490$7,518$4,709
21 years$17,295$13,824$10,954$8,613$6,728$4,095
22 years$16,335$12,905$10,096$7,831$6,031$3,565
23 years$15,459$12,069$9,322$7,132$5,413$3,107
24 years$14,658$11,308$8,621$6,505$4,866$2,710
25 years$13,922$10,612$7,985$5,941$4,378$2,366
26 years$13,244$9,974$7,405$5,432$3,944$2,067
27 years$12,617$9,386$6,877$4,972$3,556$1,807
28 years$12,035$8,845$6,393$4,555$3,208$1,581
29 years$11,495$8,344$5,949$4,177$2,897$1,383
30 years$10,992$7,880$5,541$3,834$2,618$1,211
31 years$10,522$7,449$5,166$3,521$2,367$1,061
32 years$10,083$7,049$4,820$3,236$2,141$929
33 years$9,671$6,675$4,500$2,976$1,937$814
34 years$9,284$6,326$4,205$2,738$1,754$714
35 years$8,920$6,001$3,931$2,520$1,589$626
36 years$8,576$5,695$3,678$2,321$1,440$549
37 years$8,253$5,409$3,442$2,139$1,305$481
38 years$7,947$5,141$3,223$1,971$1,183$422
39 years$7,657$4,888$3,020$1,818$1,073$370
40 years$7,383$4,651$2,831$1,676$973$325
41 years$7,122$4,427$2,654$1,547$883$285
42 years$6,875$4,216$2,490$1,427$801$250
43 years$6,640$4,017$2,336$1,318$727$219
44 years$6,416$3,829$2,193$1,217$660$192
45 years$6,203$3,652$2,059$1,124$599$169
46 years$5,999$3,484$1,934$1,038$544$148
47 years$5,805$3,324$1,817$959$494$130
48 years$5,619$3,174$1,707$886$448$114
49 years$5,442$3,031$1,605$819$407$100
50 years$5,272$2,895$1,509$757$370$88

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $5,400,000, adding $5,709 every year, while hoping to spend $47,416 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: 38/48/14 Blend
39$5,400,000$5,400,000$5,400,000$5,400,000
40$5,956,689$5,670,489$5,586,789$6,157,586
41$6,513,821$5,897,893$5,723,496$6,528,946
42$7,126,191$6,134,850$5,863,194$6,925,014
43$7,799,384$6,381,779$6,005,932$7,352,016
44$8,539,552$6,639,116$6,151,761$7,812,757
45$9,353,472$6,907,319$6,300,731$8,310,311
46$10,248,613$7,186,865$6,452,893$8,848,054
47$11,233,204$7,478,253$6,608,297$9,429,690
48$12,316,308$7,782,005$6,766,992$10,059,286
49$13,507,914$8,098,666$6,929,029$10,741,305
50$14,819,027$8,428,806$7,094,457$11,480,652
51$16,261,773$8,773,023$7,263,327$12,282,711
52$17,849,512$9,131,939$7,435,686$13,153,397
53$19,596,965$9,506,207$7,611,585$14,099,213
54$21,520,352$9,896,509$7,791,070$15,127,299
55$23,637,547$10,303,556$7,974,190$16,245,507
56$25,968,242$10,728,096$8,160,990$17,462,466
57$28,534,138$11,170,908$8,351,519$18,787,662
58$31,359,145$11,632,807$8,545,819$20,231,525
59$34,469,610$12,114,647$8,743,936$21,805,526
60$37,894,565$12,617,320$8,945,913$23,522,276
61$41,666,001$13,141,759$9,151,792$25,395,648
62$45,819,169$13,688,940$9,361,612$27,440,902
63$50,392,911$14,259,885$9,575,413$29,674,824
64$55,430,031$14,855,663$9,793,232$32,115,881
65$60,977,694$15,477,390$10,015,106$34,784,392
66$67,087,873$16,126,237$10,241,066$37,702,717
67$73,817,840$16,803,426$10,471,146$40,895,457
68$81,230,705$17,510,238$10,705,374$44,389,691
69$89,396,010$18,248,013$10,943,777$48,215,219
70$98,390,388$19,018,152$11,186,379$52,404,841
71$108,298,287$19,822,121$11,433,202$56,994,662
72$119,212,763$20,661,454$11,684,265$62,024,425
73$131,236,358$21,537,759$11,939,581$67,537,883
74$144,482,073$22,452,716$12,199,163$73,583,203
75$159,074,428$23,408,082$12,463,019$80,213,418
76$175,150,642$24,405,701$12,731,152$87,486,915
77$192,861,924$25,447,496$13,003,562$95,467,987
78$212,374,903$26,535,487$13,280,245$104,227,425
79$233,873,199$27,671,782$13,561,189$113,843,185
80$257,559,158$28,858,592$13,846,381$124,401,109
81$283,655,758$30,098,228$14,135,801$135,995,736
82$312,408,716$31,393,112$14,429,421$148,731,176
83$344,088,807$32,745,777$14,727,209$162,722,092
84$378,994,422$34,158,877$15,029,127$178,094,768
85$417,454,380$35,635,188$15,335,129$194,988,291
86$459,831,032$37,177,618$15,645,162$213,555,857
87$506,523,687$38,789,211$15,959,164$233,966,205
88$557,972,374$40,473,153$16,277,067$256,405,196
89$614,662,000$42,232,781$16,598,793$281,077,560
90$677,126,925$44,071,590$16,924,254$308,208,812
91$745,956,010$45,993,236$17,253,354$338,047,370
92$821,798,168$48,001,549$17,585,987$370,866,889
93$905,368,498$50,100,542$17,922,035$406,968,825
94$997,455,030$52,294,413$18,261,367$446,685,271
95$1,098,926,164$54,587,561$18,603,844$490,382,073
96$1,210,738,872$56,984,590$18,949,312$538,462,269
97$1,333,947,726$59,490,325$19,297,604$591,369,876
98$1,469,714,859$62,109,815$19,648,538$649,594,068
99$1,619,320,930$64,848,352$20,001,919$713,673,768
100$1,784,177,217$67,711,473$20,357,536$784,202,723