Can I retire at age 40 with 12,400,000?

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 $12,400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.3%
1 years$1,023,980$1,014,859$1,005,960$997,275$988,793$959,448
2 years$506,921$497,480$488,330$479,459$470,854$441,531
3 years$334,590$325,109$315,982$307,194$298,729$270,349
4 years$248,442$238,989$229,954$221,316$213,056$185,835
5 years$196,766$187,371$178,454$169,992$161,962$135,975
6 years$162,327$153,002$144,217$135,944$128,155$103,425
7 years$137,738$128,491$119,845$111,767$104,224$80,750
8 years$119,304$110,140$101,638$93,759$86,464$64,232
9 years$104,974$95,897$87,541$79,861$72,815$51,802
10 years$93,517$84,529$76,320$68,841$62,042$42,219
11 years$84,149$75,251$67,191$59,913$53,358$34,691
12 years$76,348$67,541$59,630$52,551$46,239$28,690
13 years$69,752$61,037$53,276$46,395$40,322$23,851
14 years$64,103$55,481$47,869$41,184$35,346$19,911
15 years$59,212$50,683$43,219$36,729$31,121$16,679
16 years$54,937$46,501$39,184$32,887$27,505$14,012
17 years$51,168$42,826$35,656$29,549$24,388$11,798
18 years$47,822$39,573$32,549$26,629$21,684$9,954
19 years$44,832$36,676$29,797$24,062$19,328$8,412
20 years$42,144$34,081$27,347$21,793$17,264$7,118
21 years$39,715$31,745$25,154$19,778$15,449$6,030
22 years$37,510$29,633$23,183$17,983$13,848$5,113
23 years$35,499$27,715$21,405$16,377$12,431$4,339
24 years$33,659$25,967$19,796$14,937$11,173$3,685
25 years$31,969$24,369$18,335$13,641$10,054$3,131
26 years$30,411$22,903$17,005$12,473$9,056$2,662
27 years$28,972$21,554$15,791$11,417$8,165$2,264
28 years$27,637$20,310$14,680$10,460$7,368$1,926
29 years$26,397$19,160$13,661$9,592$6,653$1,639
30 years$25,241$18,095$12,724$8,803$6,011$1,396
31 years$24,162$17,106$11,863$8,085$5,435$1,188
32 years$23,153$16,186$11,068$7,431$4,916$1,012
33 years$22,207$15,328$10,334$6,833$4,449$862
34 years$21,318$14,527$9,656$6,287$4,028$734
35 years$20,482$13,779$9,027$5,787$3,648$626
36 years$19,694$13,078$8,445$5,330$3,306$533
37 years$18,951$12,421$7,904$4,911$2,996$454
38 years$18,248$11,805$7,402$4,527$2,716$387
39 years$17,583$11,225$6,935$4,174$2,463$330
40 years$16,953$10,680$6,500$3,850$2,234$281
41 years$16,355$10,166$6,095$3,552$2,027$240
42 years$15,787$9,682$5,717$3,278$1,839$204
43 years$15,247$9,225$5,365$3,026$1,669$174
44 years$14,733$8,793$5,036$2,794$1,515$148
45 years$14,243$8,385$4,729$2,580$1,375$126
46 years$13,776$7,999$4,441$2,383$1,249$108
47 years$13,330$7,634$4,172$2,202$1,134$92
48 years$12,904$7,287$3,921$2,035$1,030$78
49 years$12,497$6,959$3,685$1,880$935$67
50 years$12,107$6,648$3,465$1,738$850$57

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $12,400,000, adding $2,165 every year, while hoping to spend $47,565 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: 54/41/5 Blend
39$12,400,000$12,400,000$12,400,000$12,400,000
40$13,667,033$13,009,833$12,817,633$14,390,557
41$15,010,462$13,596,706$13,196,415$15,466,047
42$16,489,326$14,210,742$13,586,292$16,630,449
43$18,117,390$14,853,221$13,987,585$17,896,464
44$19,909,820$15,525,485$14,400,626$19,273,712
45$21,883,328$16,228,941$14,825,754$20,772,760
46$24,056,330$16,965,061$15,263,319$22,405,217
47$26,449,116$17,735,389$15,713,680$24,183,843
48$29,084,046$18,541,544$16,177,209$26,122,656
49$31,985,759$19,385,219$16,654,285$28,237,068
50$35,181,403$20,268,191$17,145,300$30,544,020
51$38,700,895$21,192,322$17,650,657$33,062,135
52$42,577,201$22,159,560$18,170,769$35,811,891
53$46,846,648$23,171,952$18,706,062$38,815,807
54$51,549,266$24,231,637$19,256,975$42,098,647
55$56,729,166$25,340,862$19,823,958$45,687,650
56$62,434,954$26,501,977$20,407,474$49,612,776
57$68,720,193$27,717,448$21,007,999$53,906,986
58$75,643,909$28,989,859$21,626,023$58,606,540
59$83,271,143$30,321,918$22,262,050$63,751,334
60$91,673,569$31,716,461$22,916,598$69,385,266
61$100,930,169$33,176,463$23,590,199$75,556,645
62$111,127,977$34,705,041$24,283,402$82,318,632
63$122,362,904$36,305,461$24,996,769$89,729,735
64$134,740,640$37,981,149$25,730,881$97,854,352
65$148,377,651$39,735,691$26,486,331$106,763,364
66$163,402,282$41,572,850$27,263,734$116,534,795
67$179,955,964$43,496,569$28,063,718$127,254,537
68$198,194,550$45,510,979$28,886,931$139,017,147
69$218,289,790$47,620,412$29,734,038$151,926,725
70$240,430,945$49,829,408$30,605,724$166,097,887
71$264,826,578$52,142,727$31,502,694$181,656,828
72$291,706,525$54,565,356$32,425,669$198,742,501
73$321,324,056$57,102,524$33,375,395$217,507,909
74$353,958,275$59,759,713$34,352,636$238,121,540
75$389,916,747$62,542,667$35,358,178$260,768,931
76$429,538,408$65,457,411$36,392,829$285,654,408
77$473,196,758$68,510,256$37,457,422$313,002,993
78$521,303,391$71,707,822$38,552,809$343,062,508
79$574,311,878$75,057,047$39,679,869$376,105,893
80$632,722,051$78,565,203$40,839,506$412,433,764
81$697,084,717$82,239,915$42,032,646$452,377,222
82$768,006,864$86,089,176$43,260,245$496,300,962
83$846,157,384$90,121,366$44,523,283$544,606,682
84$932,273,392$94,345,268$45,822,768$597,736,855
85$1,027,167,183$98,770,092$47,159,736$656,178,878
86$1,131,733,902$103,405,492$48,535,253$720,469,639
87$1,246,959,989$108,261,590$49,950,413$791,200,562
88$1,373,932,498$113,348,998$51,406,342$869,023,151
89$1,513,849,354$118,678,840$52,904,196$954,655,113
90$1,668,030,665$124,262,780$54,445,164$1,048,887,097
91$1,837,931,183$130,113,047$56,030,467$1,152,590,119
92$2,025,154,038$136,242,461$57,661,362$1,266,723,750
93$2,231,465,872$142,664,463$59,339,139$1,392,345,129
94$2,458,813,515$149,393,146$61,065,125$1,530,618,909
95$2,709,342,369$156,443,285$62,840,682$1,682,828,199
96$2,985,416,657$163,830,372$64,667,211$1,850,386,638
97$3,289,641,745$171,570,650$66,546,152$2,034,851,689
98$3,624,888,739$179,681,147$68,478,983$2,237,939,288
99$3,994,321,587$188,179,721$70,467,227$2,461,539,999
100$4,401,426,953$197,085,091$72,512,443$2,707,736,799