Can I retire at age 40 with 5,900,000?

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 $5,900,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$487,216$482,877$478,642$474,510$470,474$459,101
2 years$241,196$236,704$232,351$228,130$224,035$212,645
3 years$159,200$154,689$150,346$146,165$142,137$131,086
4 years$118,210$113,713$109,414$105,304$101,373$90,747
5 years$93,623$89,152$84,909$80,883$77,063$66,890
6 years$77,236$72,799$68,619$64,683$60,977$51,268
7 years$65,536$61,137$57,023$53,179$49,591$40,347
8 years$56,765$52,406$48,360$44,611$41,140$32,359
9 years$49,947$45,628$41,653$37,999$34,646$26,319
10 years$44,496$40,219$36,314$32,755$29,520$21,638
11 years$40,038$35,805$31,970$28,507$25,388$17,940
12 years$36,327$32,136$28,373$25,004$22,001$14,974
13 years$33,188$29,042$25,349$22,075$19,185$12,566
14 years$30,501$26,398$22,776$19,596$16,818$10,592
15 years$28,174$24,115$20,564$17,476$14,808$8,961
16 years$26,139$22,125$18,644$15,648$13,087$7,603
17 years$24,346$20,377$16,965$14,059$11,604$6,468
18 years$22,754$18,829$15,487$12,670$10,318$5,513
19 years$21,331$17,450$14,178$11,449$9,196$4,708
20 years$20,052$16,216$13,012$10,369$8,214$4,027
21 years$18,897$15,104$11,968$9,411$7,351$3,448
22 years$17,847$14,099$11,031$8,556$6,589$2,956
23 years$16,891$13,187$10,185$7,792$5,915$2,536
24 years$16,015$12,355$9,419$7,107$5,316$2,178
25 years$15,211$11,595$8,724$6,491$4,784$1,872
26 years$14,470$10,897$8,091$5,935$4,309$1,609
27 years$13,785$10,256$7,513$5,432$3,885$1,384
28 years$13,150$9,664$6,985$4,977$3,506$1,191
29 years$12,560$9,117$6,500$4,564$3,165$1,026
30 years$12,010$8,610$6,054$4,189$2,860$883
31 years$11,497$8,139$5,644$3,847$2,586$761
32 years$11,016$7,701$5,266$3,535$2,339$655
33 years$10,566$7,293$4,917$3,251$2,117$565
34 years$10,143$6,912$4,594$2,991$1,917$487
35 years$9,745$6,556$4,295$2,754$1,736$420
36 years$9,371$6,223$4,018$2,536$1,573$362
37 years$9,017$5,910$3,761$2,337$1,426$312
38 years$8,682$5,617$3,522$2,154$1,292$269
39 years$8,366$5,341$3,300$1,986$1,172$232
40 years$8,066$5,082$3,093$1,832$1,063$200
41 years$7,782$4,837$2,900$1,690$964$173
42 years$7,512$4,607$2,720$1,560$875$149
43 years$7,255$4,389$2,553$1,440$794$128
44 years$7,010$4,184$2,396$1,329$721$111
45 years$6,777$3,990$2,250$1,228$654$96
46 years$6,555$3,806$2,113$1,134$594$82
47 years$6,343$3,632$1,985$1,048$540$71
48 years$6,140$3,467$1,866$968$490$61
49 years$5,946$3,311$1,754$895$445$53
50 years$5,760$3,163$1,649$827$404$46

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $5,900,000, adding $2,601 every year, while hoping to spend $31,861 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: 55/31/14 Blend
39$5,900,000$5,900,000$5,900,000$5,900,000
40$6,504,483$6,191,783$6,100,333$6,838,326
41$7,134,040$6,461,280$6,270,794$7,334,983
42$7,826,745$6,742,915$6,445,898$7,871,833
43$8,589,004$7,037,249$6,625,767$8,455,661
44$9,427,877$7,344,869$6,810,524$9,090,956
45$10,351,143$7,666,390$7,000,300$9,782,650
46$11,367,373$8,002,457$7,195,223$10,536,168
47$12,486,012$8,353,744$7,395,430$11,357,473
48$13,717,466$8,720,958$7,601,058$12,253,122
49$15,073,201$9,104,839$7,812,247$13,230,325
50$16,565,853$9,506,162$8,029,142$14,297,014
51$18,209,343$9,925,737$8,251,892$15,461,912
52$20,019,014$10,364,416$8,480,648$16,734,616
53$22,011,768$10,823,087$8,715,565$18,125,685
54$24,206,235$11,302,685$8,956,803$19,646,734
55$26,622,939$11,804,184$9,204,524$21,310,545
56$29,284,498$12,328,609$9,458,895$23,131,184
57$32,215,836$12,877,030$9,720,087$25,124,130
58$35,444,417$13,450,570$9,988,275$27,306,419
59$39,000,503$14,050,404$10,263,639$29,696,803
60$42,917,445$14,677,763$10,546,360$32,315,921
61$47,231,989$15,333,939$10,836,628$35,186,493
62$51,984,631$16,020,281$11,134,635$38,333,531
63$57,219,994$16,738,206$11,440,576$41,784,569
64$62,987,252$17,489,196$11,754,654$45,569,923
65$69,340,591$18,274,806$12,077,074$49,722,970
66$76,339,723$19,096,663$12,408,047$54,280,463
67$84,050,447$19,956,472$12,747,789$59,282,868
68$92,545,274$20,856,021$13,096,521$64,774,746
69$101,904,106$21,797,179$13,454,469$70,805,169
70$112,214,994$22,781,910$13,821,863$77,428,174
71$123,574,968$23,812,268$14,198,939$84,703,275
72$136,090,951$24,890,406$14,585,941$92,696,013
73$149,880,772$26,018,580$14,983,113$101,478,573
74$165,074,273$27,199,153$15,390,711$111,130,459
75$181,814,541$28,434,603$15,808,991$121,739,238
76$200,259,250$29,727,525$16,238,218$133,401,359
77$220,582,157$31,080,638$16,678,662$146,223,060
78$242,974,740$32,496,792$17,130,601$160,321,363
79$267,648,003$33,978,973$17,594,314$175,825,168
80$294,834,468$35,530,312$18,070,093$192,876,468
81$324,790,373$37,154,086$18,558,230$211,631,678
82$357,798,088$38,853,734$19,059,028$232,263,104
83$394,168,782$40,632,855$19,572,794$254,960,560
84$434,245,358$42,495,226$20,099,843$279,933,154
85$478,405,692$44,444,800$20,640,496$307,411,250
86$527,066,202$46,485,723$21,195,081$337,648,633
87$580,685,771$48,622,341$21,763,933$370,924,895
88$639,770,089$50,859,205$22,347,395$407,548,066
89$704,876,421$53,201,089$22,945,815$447,857,504
90$776,618,866$55,652,992$23,559,550$492,227,096
91$855,674,160$58,220,159$24,188,965$541,068,767
92$942,788,059$60,908,081$24,834,430$594,836,362
93$1,038,782,383$63,722,519$25,496,325$654,029,913
94$1,144,562,771$66,669,507$26,175,037$719,200,347
95$1,261,127,233$69,755,372$26,870,959$790,954,672
96$1,389,575,570$72,986,745$27,584,496$869,961,694
97$1,531,119,759$76,370,576$28,316,057$956,958,311
98$1,687,095,390$79,914,150$29,066,061$1,052,756,455
99$1,858,974,281$83,625,104$29,834,935$1,158,250,740
100$2,048,378,366$87,511,443$30,623,114$1,274,426,886