Can I retire at age 40 with 7,400,000?

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 $7,400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.9%
1 years$611,085$605,642$600,331$595,148$590,086$566,674
2 years$302,517$296,883$291,423$286,129$280,994$257,696
3 years$199,675$194,016$188,570$183,325$178,274$155,825
4 years$148,264$142,623$137,231$132,076$127,146$105,717
5 years$117,425$111,818$106,497$101,447$96,655$76,299
6 years$96,873$91,308$86,065$81,128$76,480$57,211
7 years$82,198$76,680$71,520$66,700$62,198$44,010
8 years$71,197$65,729$60,655$55,953$51,600$34,473
9 years$62,646$57,229$52,242$47,659$43,454$27,363
10 years$55,808$50,444$45,546$41,083$37,025$21,938
11 years$50,218$44,908$40,098$35,754$31,843$17,725
12 years$45,562$40,307$35,586$31,361$27,594$14,407
13 years$41,626$36,426$31,794$27,687$24,063$11,766
14 years$38,255$33,110$28,567$24,578$21,093$9,646
15 years$35,336$30,246$25,792$21,919$18,572$7,933
16 years$32,785$27,751$23,384$19,626$16,414$6,540
17 years$30,536$25,557$21,279$17,634$14,554$5,402
18 years$28,539$23,616$19,425$15,892$12,941$4,470
19 years$26,754$21,887$17,782$14,360$11,534$3,704
20 years$25,150$20,339$16,320$13,005$10,303$3,072
21 years$23,701$18,945$15,011$11,803$9,220$2,551
22 years$22,385$17,684$13,835$10,732$8,264$2,120
23 years$21,185$16,540$12,774$9,774$7,418$1,762
24 years$20,087$15,496$11,814$8,914$6,668$1,466
25 years$19,078$14,543$10,942$8,141$6,000$1,220
26 years$18,149$13,668$10,148$7,444$5,405$1,016
27 years$17,289$12,863$9,423$6,813$4,873$846
28 years$16,493$12,121$8,760$6,242$4,397$705
29 years$15,753$11,434$8,152$5,724$3,970$587
30 years$15,063$10,799$7,594$5,254$3,587$489
31 years$14,419$10,208$7,079$4,825$3,243$408
32 years$13,817$9,659$6,605$4,434$2,934$340
33 years$13,252$9,147$6,167$4,078$2,655$283
34 years$12,722$8,670$5,762$3,752$2,404$236
35 years$12,223$8,223$5,387$3,454$2,177$197
36 years$11,753$7,805$5,040$3,181$1,973$164
37 years$11,309$7,413$4,717$2,931$1,788$137
38 years$10,890$7,045$4,417$2,701$1,621$114
39 years$10,493$6,699$4,139$2,491$1,470$95
40 years$10,117$6,373$3,879$2,297$1,333$79
41 years$9,760$6,067$3,637$2,120$1,210$66
42 years$9,421$5,778$3,412$1,956$1,098$55
43 years$9,099$5,505$3,202$1,806$996$46
44 years$8,792$5,248$3,005$1,667$904$38
45 years$8,500$5,004$2,822$1,540$821$32
46 years$8,221$4,774$2,650$1,422$745$27
47 years$7,955$4,556$2,490$1,314$677$22
48 years$7,701$4,349$2,340$1,214$615$19
49 years$7,458$4,153$2,199$1,122$558$15
50 years$7,225$3,967$2,068$1,037$507$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $7,400,000, adding $5,815 every year, while hoping to spend $36,723 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: 42/42/16 Blend
39$7,400,000$7,400,000$7,400,000$7,400,000
40$8,160,798$7,768,598$7,653,898$8,465,069
41$8,954,127$8,110,186$7,871,231$9,021,788
42$9,827,144$8,467,282$8,094,613$9,620,208
43$10,787,939$8,840,605$8,324,209$10,267,434
44$11,845,426$9,230,912$8,560,188$10,967,954
45$13,009,426$9,638,993$8,802,720$11,726,690
46$14,290,760$10,065,677$9,051,984$12,549,045
47$15,701,353$10,511,830$9,308,161$13,440,951
48$17,254,344$10,978,363$9,571,438$14,408,920
49$18,964,211$11,466,227$9,842,005$15,460,104
50$20,846,907$11,976,419$10,120,058$16,602,359
51$22,920,011$12,509,982$10,405,800$17,844,314
52$25,202,894$13,068,013$10,699,435$19,195,451
53$27,716,899$13,651,655$11,001,176$20,666,189
54$30,485,546$14,262,110$11,311,240$22,267,979
55$33,534,754$14,900,636$11,629,848$24,013,408
56$36,893,081$15,568,549$11,957,230$25,916,312
57$40,591,998$16,267,230$12,293,620$27,991,904
58$44,666,182$16,998,125$12,639,257$30,256,911
59$49,153,848$17,762,749$12,994,387$32,729,728
60$54,097,105$18,562,688$13,359,264$35,430,586
61$59,542,356$19,399,606$13,734,145$38,381,737
62$65,540,733$20,275,243$14,119,296$41,607,661
63$72,148,584$21,191,427$14,514,989$45,135,285
64$79,428,001$22,150,068$14,921,502$48,994,237
65$87,447,407$23,153,171$15,339,122$53,217,116
66$96,282,201$24,202,835$15,768,141$57,839,794
67$106,015,472$25,301,260$16,208,860$62,901,746
68$116,738,779$26,450,751$16,661,586$68,446,417
69$128,553,021$27,653,724$17,126,636$74,521,623
70$141,569,382$28,912,709$17,604,331$81,179,992
71$155,910,386$30,230,359$18,095,003$88,479,459
72$171,711,052$31,609,454$18,598,992$96,483,795
73$189,120,167$33,052,904$19,116,646$105,263,205
74$208,301,691$34,563,764$19,648,321$114,894,983
75$229,436,305$36,145,230$20,194,382$125,464,222
76$252,723,117$37,800,655$20,755,202$137,064,618
77$278,381,540$39,533,552$21,331,166$149,799,334
78$306,653,363$41,347,602$21,922,666$163,781,967
79$337,805,034$43,246,662$22,530,103$179,137,607
80$372,130,176$45,234,777$23,153,890$196,004,004
81$409,952,357$47,316,184$23,794,449$214,532,855
82$451,628,144$49,495,325$24,452,210$234,891,223
83$497,550,473$51,776,853$25,127,617$257,263,096
84$548,152,351$54,165,649$25,821,122$281,851,115
85$603,910,950$56,666,825$26,533,189$308,878,461
86$665,352,109$59,285,742$27,264,292$338,590,956
87$733,055,296$62,028,015$28,014,919$371,259,356
88$807,659,083$64,899,534$28,785,565$407,181,893
89$889,867,168$67,906,471$29,576,740$446,687,071
90$980,455,025$71,055,293$30,388,966$490,136,748
91$1,080,277,217$74,352,782$31,222,776$537,929,524
92$1,190,275,469$77,806,044$32,078,715$590,504,491
93$1,311,487,558$81,422,531$32,957,343$648,345,348
94$1,445,057,105$85,210,052$33,859,230$711,984,943
95$1,592,244,377$89,176,792$34,784,962$782,010,284
96$1,754,438,182$93,331,333$35,735,137$859,068,045
97$1,933,168,978$97,682,670$36,710,366$943,870,649
98$2,130,123,326$102,240,233$37,711,275$1,037,202,961
99$2,347,159,807$107,013,906$38,738,505$1,139,929,670
100$2,586,326,573$112,014,053$39,792,710$1,253,003,415