Can I retire at age 40 with 2,420,000?

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 $2,420,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.1%
1 years$199,841$198,061$196,325$194,629$192,974$190,484
2 years$98,931$97,089$95,303$93,572$91,892$89,387
3 years$65,299$63,449$61,667$59,952$58,300$55,858
4 years$48,486$46,641$44,878$43,192$41,580$39,219
5 years$38,401$36,567$34,827$33,176$31,609$29,336
6 years$31,680$29,860$28,146$26,531$25,011$22,830
7 years$26,881$25,076$23,389$21,813$20,341$18,251
8 years$23,283$21,495$19,836$18,298$16,874$14,877
9 years$20,487$18,715$17,085$15,586$14,211$12,304
10 years$18,251$16,497$14,895$13,435$12,108$10,291
11 years$16,423$14,686$13,113$11,693$10,413$8,684
12 years$14,900$13,181$11,638$10,256$9,024$7,381
13 years$13,613$11,912$10,397$9,055$7,869$6,310
14 years$12,510$10,828$9,342$8,038$6,898$5,420
15 years$11,556$9,891$8,435$7,168$6,074$4,675
16 years$10,722$9,075$7,647$6,418$5,368$4,046
17 years$9,986$8,358$6,959$5,767$4,760$3,511
18 years$9,333$7,723$6,352$5,197$4,232$3,055
19 years$8,749$7,158$5,815$4,696$3,772$2,663
20 years$8,225$6,651$5,337$4,253$3,369$2,326
21 years$7,751$6,195$4,909$3,860$3,015$2,034
22 years$7,320$5,783$4,524$3,510$2,703$1,782
23 years$6,928$5,409$4,177$3,196$2,426$1,563
24 years$6,569$5,068$3,863$2,915$2,181$1,372
25 years$6,239$4,756$3,578$2,662$1,962$1,205
26 years$5,935$4,470$3,319$2,434$1,767$1,060
27 years$5,654$4,207$3,082$2,228$1,594$932
28 years$5,394$3,964$2,865$2,041$1,438$821
29 years$5,152$3,739$2,666$1,872$1,298$723
30 years$4,926$3,531$2,483$1,718$1,173$637
31 years$4,716$3,338$2,315$1,578$1,061$562
32 years$4,519$3,159$2,160$1,450$959$495
33 years$4,334$2,991$2,017$1,334$868$437
34 years$4,160$2,835$1,884$1,227$786$386
35 years$3,997$2,689$1,762$1,129$712$340
36 years$3,844$2,552$1,648$1,040$645$300
37 years$3,698$2,424$1,543$958$585$265
38 years$3,561$2,304$1,445$883$530$234
39 years$3,432$2,191$1,353$815$481$207
40 years$3,309$2,084$1,269$751$436$183
41 years$3,192$1,984$1,190$693$396$161
42 years$3,081$1,890$1,116$640$359$143
43 years$2,976$1,800$1,047$591$326$126
44 years$2,875$1,716$983$545$296$111
45 years$2,780$1,636$923$504$268$98
46 years$2,689$1,561$867$465$244$87
47 years$2,602$1,490$814$430$221$77
48 years$2,518$1,422$765$397$201$68
49 years$2,439$1,358$719$367$183$60
50 years$2,363$1,297$676$339$166$53

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,420,000, adding $3,845 every year, while hoping to spend $53,186 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: 74/21/5 Blend
39$2,420,000$2,420,000$2,420,000$2,420,000
40$2,670,806$2,542,546$2,505,036$2,867,187
41$2,886,639$2,610,541$2,532,365$3,064,881
42$3,122,704$2,680,086$2,558,828$3,274,230
43$3,381,009$2,751,199$2,584,337$3,502,018
44$3,663,764$2,823,901$2,608,805$3,750,045
45$3,973,405$2,898,208$2,632,137$4,020,296
46$4,312,610$2,974,138$2,654,231$4,314,956
47$4,684,333$3,051,708$2,674,985$4,636,431
48$5,091,824$3,130,931$2,694,286$4,987,369
49$5,538,665$3,211,821$2,712,019$5,370,688
50$6,028,799$3,294,391$2,728,062$5,789,601
51$6,566,570$3,378,649$2,742,286$6,247,645
52$7,156,763$3,464,606$2,754,555$6,748,717
53$7,804,649$3,552,267$2,764,728$7,297,111
54$8,516,032$3,641,638$2,772,656$7,897,553
55$9,297,309$3,732,719$2,778,182$8,555,252
56$10,155,524$3,825,512$2,781,140$9,275,944
57$11,098,439$3,920,014$2,781,360$10,065,949
58$12,134,603$4,016,218$2,778,659$10,932,230
59$13,273,436$4,114,116$2,772,847$11,882,455
60$14,525,314$4,213,695$2,763,726$12,925,074
61$15,901,671$4,314,941$2,751,085$14,069,397
62$17,415,101$4,417,833$2,734,706$15,325,679
63$19,079,483$4,522,348$2,714,360$16,705,220
64$20,910,104$4,628,457$2,689,805$18,220,469
65$22,923,812$4,736,128$2,660,790$19,885,145
66$25,139,165$4,845,323$2,627,051$21,714,360
67$27,576,613$4,955,997$2,588,311$23,724,767
68$30,258,688$5,068,102$2,544,280$25,934,716
69$33,210,217$5,181,582$2,494,656$28,364,423
70$36,458,554$5,296,374$2,439,122$31,036,166
71$40,033,840$5,412,409$2,377,346$33,974,492
72$43,969,285$5,529,610$2,308,980$37,206,449
73$48,301,482$5,647,892$2,233,662$40,761,842
74$53,070,755$5,767,161$2,151,011$44,673,512
75$58,321,534$5,887,313$2,060,631$48,977,648
76$64,102,775$6,008,236$1,962,107$53,714,129
77$70,468,424$6,129,806$1,855,004$58,926,896
78$77,477,925$6,251,888$1,738,868$64,664,373
79$85,196,780$6,374,337$1,613,227$70,979,917
80$93,697,165$6,496,993$1,477,584$77,932,328
81$103,058,615$6,619,685$1,331,421$85,586,400
82$113,368,769$6,742,225$1,174,199$94,013,534
83$124,724,201$6,864,411$1,005,353$103,292,409
84$137,231,330$6,986,028$824,292$113,509,730
85$151,007,421$7,106,839$630,402$124,761,043
86$166,181,697$7,226,592$423,039$137,151,636
87$182,896,551$7,345,016$201,532$150,797,536
88$201,308,896$7,461,820$0$165,826,602
89$221,591,643$7,576,688$0$182,381,592
90$243,935,332$7,689,287$0$200,627,509
91$268,549,928$7,799,255$0$220,724,737
92$295,666,809$7,906,207$0$242,861,872
93$325,540,943$8,009,730$0$267,246,746
94$358,453,297$8,109,384$0$294,108,385
95$394,713,486$8,204,697$0$323,699,170
96$434,662,700$8,295,166$0$356,297,225
97$478,676,920$8,380,253$0$392,209,036
98$527,170,467$8,459,387$0$431,772,349
99$580,599,914$8,531,956$0$475,359,353
100$639,468,393$8,597,309$0$523,380,203