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

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 $5,400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$445,927$441,955$438,080$434,297$430,604$416,653
2 years$220,756$216,645$212,660$208,797$205,049$191,125
3 years$145,709$141,580$137,605$133,778$130,092$116,631
4 years$108,192$104,076$100,141$96,380$92,783$79,888
5 years$85,689$81,597$77,714$74,029$70,532$58,239
6 years$70,691$66,630$62,804$59,201$55,809$44,128
7 years$59,983$55,956$52,191$48,673$45,388$34,316
8 years$51,955$47,964$44,262$40,830$37,654$27,184
9 years$45,714$41,762$38,123$34,778$31,710$21,830
10 years$40,725$36,811$33,236$29,979$27,018$17,714
11 years$36,645$32,771$29,261$26,091$23,237$14,490
12 years$33,248$29,413$25,968$22,885$20,136$11,928
13 years$30,376$26,581$23,201$20,204$17,559$9,869
14 years$27,916$24,161$20,846$17,935$15,392$8,199
15 years$25,786$22,072$18,821$15,995$13,553$6,834
16 years$23,924$20,250$17,064$14,322$11,978$5,712
17 years$22,283$18,650$15,528$12,868$10,620$4,785
18 years$20,826$17,233$14,175$11,597$9,443$4,016
19 years$19,523$15,972$12,976$10,479$8,417$3,376
20 years$18,353$14,842$11,909$9,490$7,518$2,842
21 years$17,295$13,824$10,954$8,613$6,728$2,394
22 years$16,335$12,905$10,096$7,831$6,031$2,019
23 years$15,459$12,069$9,322$7,132$5,413$1,704
24 years$14,658$11,308$8,621$6,505$4,866$1,439
25 years$13,922$10,612$7,985$5,941$4,378$1,216
26 years$13,244$9,974$7,405$5,432$3,944$1,028
27 years$12,617$9,386$6,877$4,972$3,556$869
28 years$12,035$8,845$6,393$4,555$3,208$736
29 years$11,495$8,344$5,949$4,177$2,897$622
30 years$10,992$7,880$5,541$3,834$2,618$527
31 years$10,522$7,449$5,166$3,521$2,367$446
32 years$10,083$7,049$4,820$3,236$2,141$378
33 years$9,671$6,675$4,500$2,976$1,937$320
34 years$9,284$6,326$4,205$2,738$1,754$271
35 years$8,920$6,001$3,931$2,520$1,589$229
36 years$8,576$5,695$3,678$2,321$1,440$194
37 years$8,253$5,409$3,442$2,139$1,305$165
38 years$7,947$5,141$3,223$1,971$1,183$139
39 years$7,657$4,888$3,020$1,818$1,073$118
40 years$7,383$4,651$2,831$1,676$973$100
41 years$7,122$4,427$2,654$1,547$883$85
42 years$6,875$4,216$2,490$1,427$801$72
43 years$6,640$4,017$2,336$1,318$727$61
44 years$6,416$3,829$2,193$1,217$660$52
45 years$6,203$3,652$2,059$1,124$599$44
46 years$5,999$3,484$1,934$1,038$544$37
47 years$5,805$3,324$1,817$959$494$31
48 years$5,619$3,174$1,707$886$448$27
49 years$5,442$3,031$1,605$819$407$23
50 years$5,272$2,895$1,509$757$370$19

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 $4,720 every year, while hoping to spend $48,796 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: 61/16/23 Blend
39$5,400,000$5,400,000$5,400,000$5,400,000
40$5,955,669$5,669,469$5,585,769$6,282,470
41$6,511,228$5,895,354$5,720,973$6,730,396
42$7,121,820$6,130,672$5,859,072$7,213,297
43$7,793,004$6,375,834$6,000,110$7,739,285
44$8,530,910$6,631,269$6,144,133$8,312,562
45$9,342,286$6,897,426$6,291,185$8,937,753
46$10,234,572$7,174,772$6,441,312$9,619,945
47$11,215,962$7,463,799$6,594,559$10,364,741
48$12,295,483$7,765,018$6,750,970$11,178,306
49$13,483,083$8,078,965$6,910,588$12,067,427
50$14,789,722$8,406,199$7,073,458$13,039,577
51$16,227,477$8,747,306$7,239,622$14,102,982
52$17,809,652$9,102,896$7,409,122$15,266,699
53$19,550,909$9,473,611$7,582,000$16,540,700
54$21,467,402$9,860,117$7,758,297$17,935,967
55$23,576,929$10,263,115$7,938,052$19,464,592
56$25,899,103$10,683,335$8,121,304$21,139,890
57$28,455,535$11,121,542$8,308,091$22,976,526
58$31,270,037$11,578,535$8,498,449$24,990,650
59$34,368,847$12,055,149$8,692,414$27,200,048
60$37,780,877$12,552,260$8,890,018$29,624,312
61$41,537,987$13,070,780$9,091,293$32,285,018
62$45,675,280$13,611,668$9,296,270$35,205,933
63$50,231,441$14,175,922$9,504,978$38,413,234
64$55,249,094$14,764,588$9,717,441$41,935,759
65$60,775,211$15,378,762$9,933,684$45,805,269
66$66,861,549$16,019,588$10,153,729$50,056,757
67$73,565,142$16,688,263$10,377,594$54,728,767
68$80,948,839$17,386,040$10,605,296$59,863,761
69$89,081,895$18,114,230$10,836,847$65,508,518
70$98,040,624$18,874,204$11,072,258$71,714,571
71$107,909,124$19,667,396$11,311,535$78,538,693
72$118,780,065$20,495,308$11,554,681$86,043,433
73$130,755,564$21,359,511$11,801,695$94,297,700
74$143,948,151$22,261,647$12,052,572$103,377,413
75$158,481,832$23,203,437$12,307,303$113,366,218
76$174,493,253$24,186,679$12,565,872$124,356,272
77$192,132,997$25,213,259$12,828,261$136,449,109
78$211,567,000$26,285,146$13,094,445$149,756,602
79$232,978,119$27,404,403$13,364,394$164,402,010
80$256,567,858$28,573,189$13,638,071$180,521,141
81$282,558,268$29,793,764$13,915,435$198,263,633
82$311,194,045$31,068,493$14,196,437$217,794,360
83$342,744,839$32,399,850$14,481,018$239,294,990
84$377,507,798$33,790,428$14,769,117$262,965,691
85$415,810,372$35,242,938$15,060,662$289,027,021
86$458,013,407$36,760,219$15,355,571$317,722,005
87$504,514,549$38,345,244$15,653,757$349,318,427
88$555,751,996$40,001,124$15,955,121$384,111,352
89$612,208,637$41,731,117$16,259,555$422,425,909
90$674,416,609$43,538,632$16,566,941$464,620,356
91$742,962,318$45,427,240$16,877,149$511,089,456
92$818,491,979$47,400,679$17,190,038$562,268,202
93$901,717,712$49,462,864$17,505,455$618,635,916
94$993,424,266$51,617,891$17,823,234$680,720,770
95$1,094,476,425$53,870,052$18,143,197$749,104,771
96$1,205,827,176$56,223,839$18,465,149$824,429,240
97$1,328,526,699$58,683,958$18,788,883$907,400,873
98$1,463,732,285$61,255,335$19,114,173$998,798,398
99$1,612,719,261$63,943,130$19,440,781$1,099,479,924
100$1,776,893,026$66,752,744$19,768,448$1,210,391,034