Will $25 Million Last a Lifetime?

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u/FinEducation · Joined Oct 2024

Discover how long $25 million in savings will sustain your lifestyle, factoring in annual spending, investment returns, and inflation.

Last update Nov 2024
  • Scenario 1: Wealth Over Time

The chart shows your savings decline over time. Use a lower return rate to account for tax impacts. Steep declines mean high spending or low returns, while slower declines reflect better returns or lower spending. Adjust inputs to explore.

# Years from Now

Try your numbers:

Your total yearly expenses, including living costs, vacations, and other expenditures.

à =

Your initial savings amount available for investment and spending.

B =
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  • Amount
    Any single amount ($).
  • Cash Flow
    Rent, insurance premium, salary, ...
  • Current Asset
    Real estate, commodity, bonds, ...
  • Installment Loan
    Mortgage, car loan, ...
  • Percentage
    Any percentage value (%).
  • Years / Months
    Any time horizon.
  • Age
    Show "Age" instead of "# Years from Now."
  • Retirement Age (requires Age)
    Enable "Investment Return After Retirement."

Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

To estimate how long your savings will last, subtract annual spending from your initial savings. The remaining balance grows based on the Market Investment Return rate, with the final "iv" representing the account value over time.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

C̃ =

Calculations

(Expressions are evaluated at every year.)

D̃ =
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Add Decision or Expectation
  • Buy Asset
    Buy an asset growing at its own rate.
  • Take Installment Loan
    Take a mortgage, loan, etc.
  • Invest
    Receive/Spend a lump sum.
  • Expect to Invest
    Expect to receive/spend a lump sum.
  • Expect Monthly Cash Flow
    Expect to receive/spend cash monthly.
  • Expect Yearly Cash Flow
    Expect to receive/spend cash yearly.
  • Define Variable (Numerical)
    Calculate an intermediate value.
Add Intermediate Calculation
  • Define Variable (Numerical)
    Calculate an intermediate value.
  • Define Variable (Cash Flow)
    Calculate a combined cash flow.