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%11.8%
1 years$594,569$589,273$584,106$579,063$574,138$569,804
2 years$294,341$288,859$283,547$278,396$273,399$269,029
3 years$194,278$188,773$183,473$178,371$173,456$169,185
4 years$144,257$138,768$133,522$128,506$123,710$119,573
5 years$114,251$108,796$103,618$98,705$94,042$90,050
6 years$94,255$88,840$83,739$78,935$74,413$70,570
7 years$79,977$74,608$69,587$64,897$60,517$56,826
8 years$69,273$63,953$59,016$54,440$50,205$46,666
9 years$60,953$55,682$50,830$46,371$42,280$38,892
10 years$54,300$49,081$44,315$39,972$36,025$32,785
11 years$48,860$43,694$39,014$34,788$30,982$27,890
12 years$44,331$39,217$34,624$30,514$26,849$23,900
13 years$40,501$35,441$30,934$26,939$23,413$20,604
14 years$37,221$32,215$27,795$23,913$20,523$17,852
15 years$34,381$29,429$25,095$21,327$18,070$15,533
16 years$31,899$27,000$22,752$19,096$15,971$13,562
17 years$29,711$24,866$20,704$17,157$14,161$11,878
18 years$27,768$22,978$18,900$15,462$12,591$10,430
19 years$26,031$21,296$17,302$13,971$11,223$9,179
20 years$24,471$19,789$15,879$12,654$10,024$8,093
21 years$23,060$18,433$14,605$11,484$8,971$7,148
22 years$21,780$17,206$13,461$10,442$8,041$6,323
23 years$20,613$16,092$12,429$9,509$7,218$5,600
24 years$19,544$15,078$11,495$8,673$6,488$4,965
25 years$18,563$14,150$10,646$7,921$5,838$4,407
26 years$17,658$13,298$9,874$7,242$5,259$3,915
27 years$16,822$12,515$9,169$6,629$4,741$3,480
28 years$16,047$11,793$8,524$6,074$4,278$3,096
29 years$15,327$11,125$7,932$5,570$3,863$2,756
30 years$14,656$10,507$7,388$5,112$3,490$2,454
31 years$14,030$9,932$6,888$4,695$3,156$2,187
32 years$13,444$9,398$6,427$4,314$2,854$1,949
33 years$12,894$8,900$6,000$3,968$2,583$1,738
34 years$12,378$8,435$5,606$3,650$2,339$1,551
35 years$11,893$8,001$5,242$3,360$2,118$1,384
36 years$11,435$7,594$4,903$3,095$1,919$1,235
37 years$11,004$7,212$4,590$2,852$1,740$1,102
38 years$10,596$6,854$4,298$2,628$1,577$984
39 years$10,209$6,518$4,027$2,423$1,430$879
40 years$9,844$6,201$3,774$2,235$1,297$785
41 years$9,496$5,903$3,539$2,062$1,177$701
42 years$9,167$5,622$3,320$1,903$1,068$627
43 years$8,853$5,356$3,115$1,757$969$560
44 years$8,555$5,106$2,924$1,622$880$500
45 years$8,270$4,869$2,746$1,498$799$447
46 years$7,999$4,645$2,579$1,384$725$400
47 years$7,740$4,432$2,423$1,279$658$357
48 years$7,493$4,231$2,277$1,181$598$319
49 years$7,256$4,041$2,140$1,092$543$286
50 years$7,030$3,860$2,012$1,009$493$255

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 $5,807 every year, while hoping to spend $50,076 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: 79/15/6 Blend
39$7,200,000$7,200,000$7,200,000$7,200,000
40$7,940,390$7,558,790$7,447,190$8,563,382
41$8,697,029$7,875,890$7,643,390$9,289,490
42$9,529,167$8,206,850$7,844,485$10,078,630
43$10,444,452$8,552,296$8,050,585$10,942,751
44$11,451,311$8,912,882$8,261,804$11,889,298
45$12,559,027$9,289,296$8,478,257$12,926,470
46$13,777,830$9,682,254$8,700,061$14,063,292
47$15,118,991$10,092,506$8,927,335$15,309,703
48$16,594,929$10,520,840$9,160,202$16,676,645
49$18,219,327$10,968,077$9,398,784$18,176,169
50$20,007,263$11,435,077$9,643,208$19,821,543
51$21,975,350$11,922,742$9,893,601$21,627,380
52$24,141,892$12,432,013$10,150,094$23,609,774
53$26,527,062$12,963,878$10,412,819$25,786,448
54$29,153,084$13,519,370$10,681,910$28,176,922
55$32,044,448$14,099,569$10,957,503$30,802,695
56$35,228,141$14,705,607$11,239,739$33,687,449
57$38,733,897$15,338,668$11,528,756$36,857,265
58$42,594,485$15,999,992$11,824,699$40,340,874
59$46,846,008$16,690,878$12,127,713$44,169,922
60$51,528,254$17,412,684$12,437,944$48,379,269
61$56,685,064$18,166,833$12,755,543$53,007,316
62$62,364,747$18,954,815$13,080,660$58,096,364
63$68,620,539$19,778,188$13,413,450$63,693,015
64$75,511,101$20,638,587$13,754,068$69,848,605
65$83,101,075$21,537,720$14,102,671$76,619,689
66$91,461,694$22,477,377$14,459,420$84,068,571
67$100,671,452$23,459,433$14,824,476$92,263,893
68$110,816,846$24,485,851$15,198,001$101,281,278
69$121,993,193$25,558,687$15,580,163$111,204,039
70$134,305,527$26,680,091$15,971,127$122,123,967
71$147,869,594$27,852,319$16,371,063$134,142,194
72$162,812,940$29,077,730$16,780,141$147,370,140
73$179,276,118$30,358,797$17,198,534$161,930,569
74$197,414,013$31,698,108$17,626,415$177,958,738
75$217,397,301$33,098,375$18,063,960$195,603,674
76$239,414,068$34,562,437$18,511,344$215,029,576
77$263,671,576$36,093,269$18,968,747$236,417,364
78$290,398,223$37,693,986$19,436,347$259,966,379
79$319,845,702$39,367,851$19,914,324$285,896,262
80$352,291,369$41,118,281$20,402,859$314,449,025
81$388,040,868$42,948,857$20,902,135$345,891,332
82$427,431,013$44,863,328$21,412,333$380,517,006
83$470,832,968$46,865,622$21,933,637$418,649,805
84$518,655,747$48,959,854$22,466,231$460,646,469
85$571,350,082$51,150,335$23,010,298$506,900,085
86$629,412,668$53,441,580$23,566,021$557,843,791
87$693,390,863$55,838,320$24,133,585$613,954,858
88$763,887,844$58,345,510$24,713,173$675,759,195
89$841,568,306$60,968,342$25,304,967$743,836,300
90$927,164,739$63,712,257$25,909,149$818,824,732
91$1,021,484,336$66,582,952$26,525,899$901,428,125
92$1,125,416,620$69,586,397$27,155,398$992,421,832
93$1,239,941,834$72,728,850$27,797,823$1,092,660,229
94$1,366,140,201$76,016,863$28,453,350$1,203,084,778
95$1,505,202,116$79,457,304$29,122,152$1,324,732,907
96$1,658,439,389$83,057,369$29,804,401$1,458,747,795
97$1,827,297,623$86,824,597$30,500,265$1,606,389,151
98$2,013,369,866$90,766,887$31,209,909$1,769,045,106
99$2,218,411,646$94,892,518$31,933,495$1,948,245,300
100$2,444,357,546$99,210,164$32,671,179$2,145,675,320