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

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 $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%15%
1 years$594,569$589,273$584,106$579,063$574,138$562,316
2 years$294,341$288,859$283,547$278,396$273,399$261,542
3 years$194,278$188,773$183,473$178,371$173,456$161,934
4 years$144,257$138,768$133,522$128,506$123,710$112,612
5 years$114,251$108,796$103,618$98,705$94,042$83,400
6 years$94,255$88,840$83,739$78,935$74,413$64,237
7 years$79,977$74,608$69,587$64,897$60,517$50,811
8 years$69,273$63,953$59,016$54,440$50,205$40,965
9 years$60,953$55,682$50,830$46,371$42,280$33,499
10 years$54,300$49,081$44,315$39,972$36,025$27,695
11 years$48,860$43,694$39,014$34,788$30,982$23,094
12 years$44,331$39,217$34,624$30,514$26,849$19,389
13 years$40,501$35,441$30,934$26,939$23,413$16,369
14 years$37,221$32,215$27,795$23,913$20,523$13,883
15 years$34,381$29,429$25,095$21,327$18,070$11,818
16 years$31,899$27,000$22,752$19,096$15,971$10,092
17 years$29,711$24,866$20,704$17,157$14,161$8,641
18 years$27,768$22,978$18,900$15,462$12,591$7,415
19 years$26,031$21,296$17,302$13,971$11,223$6,375
20 years$24,471$19,789$15,879$12,654$10,024$5,489
21 years$23,060$18,433$14,605$11,484$8,971$4,733
22 years$21,780$17,206$13,461$10,442$8,041$4,086
23 years$20,613$16,092$12,429$9,509$7,218$3,530
24 years$19,544$15,078$11,495$8,673$6,488$3,053
25 years$18,563$14,150$10,646$7,921$5,838$2,643
26 years$17,658$13,298$9,874$7,242$5,259$2,289
27 years$16,822$12,515$9,169$6,629$4,741$1,983
28 years$16,047$11,793$8,524$6,074$4,278$1,719
29 years$15,327$11,125$7,932$5,570$3,863$1,491
30 years$14,656$10,507$7,388$5,112$3,490$1,293
31 years$14,030$9,932$6,888$4,695$3,156$1,122
32 years$13,444$9,398$6,427$4,314$2,854$974
33 years$12,894$8,900$6,000$3,968$2,583$846
34 years$12,378$8,435$5,606$3,650$2,339$735
35 years$11,893$8,001$5,242$3,360$2,118$638
36 years$11,435$7,594$4,903$3,095$1,919$554
37 years$11,004$7,212$4,590$2,852$1,740$482
38 years$10,596$6,854$4,298$2,628$1,577$419
39 years$10,209$6,518$4,027$2,423$1,430$364
40 years$9,844$6,201$3,774$2,235$1,297$316
41 years$9,496$5,903$3,539$2,062$1,177$275
42 years$9,167$5,622$3,320$1,903$1,068$239
43 years$8,853$5,356$3,115$1,757$969$208
44 years$8,555$5,106$2,924$1,622$880$180
45 years$8,270$4,869$2,746$1,498$799$157
46 years$7,999$4,645$2,579$1,384$725$136
47 years$7,740$4,432$2,423$1,279$658$119
48 years$7,493$4,231$2,277$1,181$598$103
49 years$7,256$4,041$2,140$1,092$543$90
50 years$7,030$3,860$2,012$1,009$493$78

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 $5,946 every year, while hoping to spend $45,641 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: 53/42/5 Blend
39$7,200,000$7,200,000$7,200,000$7,200,000
40$7,940,533$7,558,933$7,447,333$8,352,436
41$8,701,906$7,880,759$7,648,257$8,953,470
42$9,539,409$8,216,825$7,854,383$9,601,454
43$10,460,760$8,567,780$8,065,835$10,305,249
44$11,474,460$8,934,305$8,282,744$11,070,127
45$12,589,879$9,317,110$8,505,240$11,901,881
46$13,817,340$9,716,941$8,733,458$12,806,874
47$15,168,215$10,134,577$8,967,535$13,792,101
48$16,655,036$10,570,836$9,207,612$14,865,247
49$18,291,613$11,026,570$9,453,830$16,034,762
50$20,093,161$11,502,674$9,706,336$17,309,934
51$22,076,443$12,000,086$9,965,278$18,700,975
52$24,259,935$12,519,785$10,230,810$20,219,114
53$26,663,992$13,062,797$10,503,085$21,876,702
54$29,311,042$13,630,198$10,782,262$23,687,320
55$32,225,803$14,223,112$11,068,502$25,665,907
56$35,435,508$14,842,717$11,361,969$27,828,898
57$38,970,166$15,490,247$11,662,832$30,194,372
58$42,862,848$16,166,994$11,971,262$32,782,223
59$47,149,991$16,874,309$12,287,432$35,614,337
60$51,871,750$17,613,610$12,611,520$38,714,799
61$57,072,370$18,386,379$12,943,708$42,110,116
62$62,800,610$19,194,169$13,284,180$45,829,459
63$69,110,195$20,038,607$13,633,124$49,904,934
64$76,060,332$20,921,396$13,990,731$54,371,880
65$83,716,262$21,844,319$14,357,196$59,269,199
66$92,149,876$22,809,246$14,732,717$64,639,714
67$101,440,397$23,818,133$15,117,497$70,530,569
68$111,675,125$24,873,030$15,511,741$76,993,664
69$122,950,262$25,976,082$15,915,658$84,086,145
70$135,371,817$27,129,538$16,329,461$91,870,930
71$149,056,610$28,335,754$16,753,366$100,417,297
72$164,133,374$29,597,195$17,187,593$109,801,532
73$180,743,967$30,916,446$17,632,366$120,107,640
74$199,044,713$32,296,214$18,087,912$131,428,127
75$219,207,879$33,739,333$18,554,462$143,864,869
76$241,423,296$35,248,774$19,032,250$157,530,060
77$265,900,157$36,827,649$19,521,515$172,547,264
78$292,868,986$38,479,216$20,022,499$189,052,571
79$322,583,816$40,206,892$20,535,446$207,195,868
80$355,324,588$42,014,252$21,060,606$227,142,247
81$391,399,792$43,905,046$21,598,232$249,073,550
82$431,149,377$45,883,199$22,148,579$273,190,070
83$474,947,964$47,952,827$22,711,907$299,712,436
84$523,208,379$50,118,239$23,288,479$328,883,675
85$576,385,552$52,383,951$23,878,562$360,971,498
86$634,980,810$54,754,695$24,482,424$396,270,808
87$699,546,607$57,235,430$25,100,340$435,106,472
88$770,691,745$59,831,350$25,732,586$477,836,369
89$849,087,116$62,547,899$26,379,440$524,854,754
90$935,472,036$65,390,780$27,041,186$576,595,960
91$1,030,661,226$68,365,971$27,718,108$633,538,481
92$1,135,552,501$71,479,734$28,410,494$696,209,470
93$1,251,135,247$74,738,631$29,118,637$765,189,695
94$1,378,499,759$78,149,541$29,842,828$841,118,999
95$1,518,847,536$81,719,671$30,583,365$924,702,321
96$1,673,502,622$85,456,571$31,340,544$1,016,716,324
97$1,843,924,104$89,368,158$32,114,668$1,118,016,708
98$2,031,719,891$93,462,726$32,906,037$1,229,546,256
99$2,238,661,886$97,748,966$33,714,956$1,352,343,715
100$2,466,702,723$102,235,990$34,541,731$1,487,553,567