Can I retire at age 40 with 4,000,000?

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 $4,000,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.6%
1 years$330,316$327,374$324,503$321,702$318,966$315,503
2 years$163,523$160,477$157,526$154,664$151,888$148,402
3 years$107,932$104,874$101,930$99,095$96,364$92,963
4 years$80,143$77,093$74,179$71,392$68,728$65,437
5 years$63,473$60,442$57,566$54,836$52,246$49,075
6 years$52,364$49,356$46,522$43,853$41,340$38,294
7 years$44,431$41,449$38,660$36,054$33,621$30,699
8 years$38,485$35,529$32,787$30,245$27,892$25,095
9 years$33,863$30,935$28,239$25,762$23,489$20,817
10 years$30,167$27,267$24,619$22,207$20,014$17,464
11 years$27,145$24,274$21,675$19,327$17,212$14,783
12 years$24,628$21,787$19,236$16,952$14,916$12,604
13 years$22,501$19,689$17,186$14,966$13,007$10,810
14 years$20,678$17,897$15,441$13,285$11,402$9,317
15 years$19,101$16,349$13,942$11,848$10,039$8,063
16 years$17,722$15,000$12,640$10,609$8,873$7,002
17 years$16,506$13,815$11,502$9,532$7,867$6,098
18 years$15,426$12,765$10,500$8,590$6,995$5,324
19 years$14,462$11,831$9,612$7,762$6,235$4,659
20 years$13,595$10,994$8,821$7,030$5,569$4,084
21 years$12,811$10,240$8,114$6,380$4,984$3,586
22 years$12,100$9,559$7,478$5,801$4,467$3,153
23 years$11,451$8,940$6,905$5,283$4,010$2,775
24 years$10,858$8,376$6,386$4,818$3,604$2,446
25 years$10,313$7,861$5,915$4,400$3,243$2,157
26 years$9,810$7,388$5,486$4,024$2,921$1,904
27 years$9,346$6,953$5,094$3,683$2,634$1,682
28 years$8,915$6,552$4,735$3,374$2,377$1,487
29 years$8,515$6,181$4,407$3,094$2,146$1,315
30 years$8,142$5,837$4,105$2,840$1,939$1,163
31 years$7,794$5,518$3,827$2,608$1,753$1,030
32 years$7,469$5,221$3,570$2,397$1,586$912
33 years$7,163$4,945$3,334$2,204$1,435$808
34 years$6,877$4,686$3,115$2,028$1,299$716
35 years$6,607$4,445$2,912$1,867$1,177$634
36 years$6,353$4,219$2,724$1,719$1,066$562
37 years$6,113$4,007$2,550$1,584$966$499
38 years$5,886$3,808$2,388$1,460$876$442
39 years$5,672$3,621$2,237$1,346$795$392
40 years$5,469$3,445$2,097$1,242$721$348
41 years$5,276$3,279$1,966$1,146$654$309
42 years$5,093$3,123$1,844$1,057$593$274
43 years$4,918$2,976$1,731$976$538$243
44 years$4,753$2,837$1,624$901$489$216
45 years$4,595$2,705$1,525$832$444$192
46 years$4,444$2,580$1,433$769$403$170
47 years$4,300$2,462$1,346$710$366$151
48 years$4,163$2,351$1,265$656$332$134
49 years$4,031$2,245$1,189$607$302$119
50 years$3,905$2,144$1,118$561$274$106

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $4,000,000, adding $3,959 every year, while hoping to spend $20,832 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: 72/5/23 Blend
39$4,000,000$4,000,000$4,000,000$4,000,000
40$4,412,084$4,200,084$4,138,084$4,704,320
41$4,839,951$4,383,723$4,254,544$5,083,316
42$5,310,763$4,575,662$4,374,208$5,495,448
43$5,828,877$4,776,286$4,497,161$5,946,350
44$6,399,096$4,985,997$4,623,489$6,439,875
45$7,026,712$5,205,219$4,753,284$6,980,265
46$7,717,553$5,434,391$4,886,636$7,572,191
47$8,478,045$5,673,978$5,023,640$8,220,796
48$9,315,266$5,924,464$5,164,392$8,931,747
49$10,237,017$6,186,356$5,308,992$9,711,282
50$11,251,891$6,460,185$5,457,542$10,566,271
51$12,369,359$6,746,510$5,610,145$11,504,285
52$13,599,857$7,045,912$5,766,908$12,533,657
53$14,954,883$7,359,003$5,927,941$13,663,572
54$16,447,109$7,686,422$6,093,355$14,904,141
55$18,090,498$8,028,840$6,263,265$16,266,507
56$19,900,434$8,386,959$6,437,790$17,762,942
57$21,893,872$8,761,513$6,617,050$19,406,964
58$24,089,494$9,153,274$6,801,168$21,213,468
59$26,507,886$9,563,049$6,990,271$23,198,859
60$29,171,734$9,991,682$7,184,489$25,381,213
61$32,106,036$10,440,059$7,383,954$27,780,443
62$35,338,339$10,909,109$7,588,803$30,418,485
63$38,898,997$11,399,803$7,799,176$33,319,509
64$42,821,461$11,913,160$8,015,215$36,510,143
65$47,142,591$12,450,246$8,237,066$40,019,725
66$51,903,007$13,012,180$8,464,879$43,880,579
67$57,147,470$13,600,132$8,698,809$48,128,316
68$62,925,304$14,215,331$8,939,011$52,802,175
69$69,290,864$14,859,061$9,185,646$57,945,390
70$76,304,047$15,532,670$9,438,880$63,605,595
71$84,030,858$16,237,569$9,698,882$69,835,275
72$92,544,034$16,975,238$9,965,822$76,692,262
73$101,923,728$17,747,227$10,239,880$84,240,274
74$112,258,267$18,555,160$10,521,234$92,549,523
75$123,644,985$19,400,739$10,810,071$101,697,373
76$136,191,145$20,285,746$11,106,580$111,769,066
77$150,014,946$21,212,052$11,410,955$122,858,531
78$165,246,643$22,181,614$11,723,394$135,069,268
79$182,029,772$23,196,486$12,044,100$148,515,322
80$200,522,513$24,258,817$12,373,280$163,322,359
81$220,899,172$25,370,862$12,711,148$179,628,850
82$243,351,836$26,534,983$13,057,920$197,587,382
83$268,092,182$27,753,656$13,413,819$217,366,089
84$295,353,475$29,029,475$13,779,073$239,150,243
85$325,392,770$30,365,160$14,153,912$263,144,001
86$358,493,341$31,763,561$14,538,576$289,572,328
87$394,967,350$33,227,664$14,933,307$318,683,124
88$435,158,801$34,760,601$15,338,354$350,749,556
89$479,446,781$36,365,652$15,753,971$386,072,640
90$528,249,040$38,046,257$16,180,417$424,984,080
91$582,025,938$39,806,020$16,617,957$467,849,394
92$641,284,789$41,648,719$17,066,863$515,071,368
93$706,584,646$43,578,315$17,527,412$567,093,853
94$778,541,587$45,598,959$17,999,887$624,405,953
95$857,834,522$47,715,002$18,484,577$687,546,641
96$945,211,611$49,931,004$18,981,777$757,109,846
97$1,041,497,318$52,251,746$19,491,790$833,750,054
98$1,147,600,202$54,682,240$20,014,923$918,188,489
99$1,264,521,491$57,227,737$20,551,490$1,011,219,914
100$1,393,364,531$59,893,745$21,101,814$1,113,720,136