Can I retire at age 40 with 7,200,000?

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 $7,200,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.6%
1 years$594,569$589,273$584,106$579,063$574,138$554,208
2 years$294,341$288,859$283,547$278,396$273,399$253,526
3 years$194,278$188,773$183,473$178,371$173,456$154,264
4 years$144,257$138,768$133,522$128,506$123,710$105,346
5 years$114,251$108,796$103,618$98,705$94,042$76,555
6 years$94,255$88,840$83,739$78,935$74,413$57,815
7 years$79,977$74,608$69,587$64,897$60,517$44,807
8 years$69,273$63,953$59,016$54,440$50,205$35,369
9 years$60,953$55,682$50,830$46,371$42,280$28,299
10 years$54,300$49,081$44,315$39,972$36,025$22,876
11 years$48,860$43,694$39,014$34,788$30,982$18,640
12 years$44,331$39,217$34,624$30,514$26,849$15,283
13 years$40,501$35,441$30,934$26,939$23,413$12,593
14 years$37,221$32,215$27,795$23,913$20,523$10,419
15 years$34,381$29,429$25,095$21,327$18,070$8,648
16 years$31,899$27,000$22,752$19,096$15,971$7,197
17 years$29,711$24,866$20,704$17,157$14,161$6,002
18 years$27,768$22,978$18,900$15,462$12,591$5,015
19 years$26,031$21,296$17,302$13,971$11,223$4,197
20 years$24,471$19,789$15,879$12,654$10,024$3,516
21 years$23,060$18,433$14,605$11,484$8,971$2,949
22 years$21,780$17,206$13,461$10,442$8,041$2,475
23 years$20,613$16,092$12,429$9,509$7,218$2,079
24 years$19,544$15,078$11,495$8,673$6,488$1,748
25 years$18,563$14,150$10,646$7,921$5,838$1,470
26 years$17,658$13,298$9,874$7,242$5,259$1,236
27 years$16,822$12,515$9,169$6,629$4,741$1,041
28 years$16,047$11,793$8,524$6,074$4,278$876
29 years$15,327$11,125$7,932$5,570$3,863$738
30 years$14,656$10,507$7,388$5,112$3,490$621
31 years$14,030$9,932$6,888$4,695$3,156$523
32 years$13,444$9,398$6,427$4,314$2,854$441
33 years$12,894$8,900$6,000$3,968$2,583$371
34 years$12,378$8,435$5,606$3,650$2,339$313
35 years$11,893$8,001$5,242$3,360$2,118$264
36 years$11,435$7,594$4,903$3,095$1,919$222
37 years$11,004$7,212$4,590$2,852$1,740$187
38 years$10,596$6,854$4,298$2,628$1,577$158
39 years$10,209$6,518$4,027$2,423$1,430$133
40 years$9,844$6,201$3,774$2,235$1,297$112
41 years$9,496$5,903$3,539$2,062$1,177$95
42 years$9,167$5,622$3,320$1,903$1,068$80
43 years$8,853$5,356$3,115$1,757$969$67
44 years$8,555$5,106$2,924$1,622$880$57
45 years$8,270$4,869$2,746$1,498$799$48
46 years$7,999$4,645$2,579$1,384$725$40
47 years$7,740$4,432$2,423$1,279$658$34
48 years$7,493$4,231$2,277$1,181$598$29
49 years$7,256$4,041$2,140$1,092$543$24
50 years$7,030$3,860$2,012$1,009$493$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $7,200,000, adding $2,248 every year, while hoping to spend $43,742 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: 88/5/7 Blend
39$7,200,000$7,200,000$7,200,000$7,200,000
40$7,936,719$7,555,119$7,443,519$8,631,261
41$8,699,723$7,878,778$7,646,336$9,407,460
42$9,539,088$8,216,831$7,854,481$10,254,370
43$10,462,555$8,569,937$8,068,086$11,184,029
44$11,478,656$8,938,784$8,287,288$12,204,755
45$12,596,791$9,324,097$8,512,224$13,325,712
46$13,827,316$9,726,629$8,743,035$14,556,993
47$15,181,642$10,147,174$8,979,867$15,909,718
48$16,672,344$10,586,560$9,222,867$17,396,133
49$18,313,275$11,045,654$9,472,185$19,029,732
50$20,119,703$11,525,365$9,727,977$20,825,377
51$22,108,449$12,026,643$9,990,400$22,799,443
52$24,298,047$12,550,486$10,259,615$24,969,969
53$26,708,922$13,097,934$10,535,787$27,356,828
54$29,363,580$13,670,080$10,819,083$29,981,914
55$32,286,819$14,268,067$11,109,676$32,869,348
56$35,505,964$14,893,093$11,407,740$36,045,707
57$39,051,128$15,546,410$11,713,455$39,540,270
58$42,955,491$16,229,332$12,027,004$43,385,295
59$47,255,615$16,943,233$12,348,572$47,616,326
60$51,991,790$17,689,553$12,678,351$52,272,523
61$57,208,411$18,469,801$13,016,535$57,397,034
62$62,954,402$19,285,554$13,363,322$63,037,399
63$69,283,672$20,138,467$13,718,915$69,245,998
64$76,255,628$21,030,273$14,083,519$76,080,548
65$83,935,730$21,962,785$14,457,345$83,604,642
66$92,396,117$22,937,904$14,840,609$91,888,351
67$101,716,281$23,957,620$15,233,529$101,008,884
68$111,983,817$25,024,020$15,636,328$111,051,313
69$123,295,255$26,139,285$16,049,234$122,109,381
70$135,756,966$27,305,705$16,472,478$134,286,379
71$149,486,168$28,525,676$16,906,297$147,696,123
72$164,612,031$29,801,708$17,350,932$162,464,026
73$181,276,898$31,136,432$17,806,628$178,728,284
74$199,637,626$32,532,601$18,273,635$196,641,172
75$219,867,069$33,993,103$18,752,206$216,370,488
76$242,155,707$35,520,962$19,242,602$238,101,128
77$266,713,444$37,119,345$19,745,084$262,036,838
78$293,771,594$38,791,571$20,259,923$288,402,127
79$323,585,056$40,541,117$20,787,390$317,444,390
80$356,434,727$42,371,628$21,327,763$349,436,241
81$392,630,151$44,286,919$21,881,324$384,678,084
82$432,512,438$46,290,990$22,448,361$423,500,946
83$476,457,491$48,388,032$23,029,165$466,269,603
84$524,879,545$50,582,437$23,624,033$513,386,017
85$578,235,086$52,878,803$24,233,265$565,293,131
86$637,027,154$55,281,953$24,857,168$622,479,051
87$701,810,093$57,796,939$25,496,053$685,481,645
88$773,194,787$60,429,053$26,150,235$754,893,624
89$851,854,421$63,183,842$26,820,034$831,368,132
90$938,530,842$66,067,120$27,505,774$915,624,909
91$1,034,041,556$69,084,978$28,207,786$1,008,457,087
92$1,139,287,451$72,243,798$28,926,404$1,110,738,669
93$1,255,261,298$75,550,271$29,661,965$1,223,432,779
94$1,383,057,123$79,011,407$30,414,813$1,347,600,755
95$1,523,880,536$82,634,552$31,185,296$1,484,412,160
96$1,679,060,112$86,427,406$31,973,764$1,635,155,822
97$1,850,059,933$90,398,039$32,780,575$1,801,252,000
98$2,038,493,410$94,554,907$33,606,088$1,984,265,785
99$2,246,138,513$98,906,873$34,450,668$2,185,921,875
100$2,474,954,559$103,463,227$35,314,683$2,408,120,849