Retire at 40
Retire at 40 ends $32.59M behind current plan (no changes), after tax.
- Lifetime tax, in today's dollars: $2.42M less.
- All of it under the assumptions listed below, which the reader can change.
What the tax change is made of
- Federal income tax: −$1.26M
- Tax on dividends, interest and portfolio gains: −$1.12M
- IRMAA surcharges on Medicare premiums: −$32,884
These add back to the total change; they are the same taxes the projection sums into the headline, discounted the same way.
Not financial or tax advice.
Lifetime tax (present value)$3,148,744
Terminal after-tax wealth$40,140,615
Years in IRMAA25
What this assumes
Every figure below depends on these. Change one and the answer changes.
- Horizon
- 60 yearsHow many years the projection runs.
- Nominal return
- 5%Assumed annual growth before inflation.
- Inflation
- 2.5%Grows spending, and indexes brackets between published years.
- Discount rate
- 3%Used to present-value lifetime tax — the headline metric.
- Future tax law
- Current law continuesLeft on current law, the projection assumes today’s brackets last the whole horizon — itself a forecast, not a neutral choice.
Other assumptions (4)
- Dividend yield
- 1.2%
- Interest yield
- 0.8%
- Business cash return
- 2%
- Income growth
- 0%
Year by year
| Year | Age | Ordinary income | RMD | Federal tax | IRMAA | Net worth |
|---|---|---|---|---|---|---|
| 0 | 30 | $700,000 | $0 | $209,000 | $0 | $1,498,839 |
| 1 | 31 | $700,000 | $0 | $207,750 | $0 | $2,019,444 |
| 2 | 32 | $700,000 | $0 | $206,469 | $0 | $2,562,773 |
| 3 | 33 | $700,000 | $0 | $205,300 | $0 | $3,129,822 |
| 4 | 34 | $700,000 | $0 | $204,307 | $0 | $3,721,536 |
| 5 | 35 | $700,000 | $0 | $203,290 | $0 | $4,338,809 |
| 6 | 36 | $700,000 | $0 | $202,247 | $0 | $4,982,761 |
| 7 | 37 | $700,000 | $0 | $201,178 | $0 | $5,654,558 |
| 8 | 38 | $700,000 | $0 | $200,083 | $0 | $6,355,420 |
| 9 | 39 | $700,000 | $0 | $198,960 | $0 | $7,086,621 |
| 10 | 40 | $0 | $0 | $0 | $0 | $7,345,033 |
| 11 | 41 | $0 | $0 | $0 | $0 | $7,613,451 |
| 12 | 42 | $0 | $0 | $0 | $0 | $7,892,297 |
| 13 | 43 | $0 | $0 | $0 | $0 | $8,182,016 |
| 14 | 44 | $0 | $0 | $0 | $0 | $8,483,070 |
| 15 | 45 | $0 | $0 | $0 | $0 | $8,795,943 |
| 16 | 46 | $0 | $0 | $0 | $0 | $9,121,138 |
| 17 | 47 | $0 | $0 | $0 | $0 | $9,459,185 |
| 18 | 48 | $0 | $0 | $0 | $0 | $9,810,633 |
| 19 | 49 | $0 | $0 | $0 | $0 | $10,176,060 |
| 20 | 50 | $0 | $0 | $0 | $0 | $10,556,066 |
| 21 | 51 | $0 | $0 | $0 | $0 | $10,951,102 |
| 22 | 52 | $0 | $0 | $0 | $0 | $11,361,641 |
| 23 | 53 | $0 | $0 | $0 | $0 | $11,788,341 |
| 24 | 54 | $0 | $0 | $0 | $0 | $12,231,891 |
| 25 | 55 | $0 | $0 | $0 | $0 | $12,693,008 |
| 26 | 56 | $0 | $0 | $0 | $0 | $13,172,445 |
| 27 | 57 | $0 | $0 | $0 | $0 | $13,670,983 |
| 28 | 58 | $0 | $0 | $0 | $0 | $14,189,443 |
| 29 | 59 | $0 | $0 | $0 | $0 | $14,728,682 |
| 30 | 60 | $0 | $0 | $0 | $0 | $15,289,592 |
| 31 | 61 | $0 | $0 | $0 | $0 | $15,873,108 |
| 32 | 62 | $0 | $0 | $0 | $0 | $16,480,208 |
| 33 | 63 | $0 | $0 | $0 | $0 | $17,111,912 |
| 34 | 64 | $0 | $0 | $0 | $0 | $17,769,285 |
| 35 | 65 | $0 | $0 | $0 | $2,725 | $18,450,321 |
| 36 | 66 | $0 | $0 | $0 | $7,017 | $19,154,241 |
| 37 | 67 | $0 | $0 | $0 | $7,193 | $19,886,751 |
| 38 | 68 | $0 | $0 | $0 | $7,373 | $20,649,093 |
| 39 | 69 | $0 | $0 | $0 | $7,557 | $21,442,567 |