Can I retire at age 40 with 1,200,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $1,200,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.6%
1 years$99,095$98,212$97,351$96,510$95,690$93,490
2 years$49,057$48,143$47,258$46,399$45,567$43,363
3 years$32,380$31,462$30,579$29,728$28,909$26,770
4 years$24,043$23,128$22,254$21,418$20,618$18,560
5 years$19,042$18,133$17,270$16,451$15,674$13,702
6 years$15,709$14,807$13,956$13,156$12,402$10,520
7 years$13,329$12,435$11,598$10,816$10,086$8,293
8 years$11,546$10,659$9,836$9,073$8,367$6,662
9 years$10,159$9,280$8,472$7,729$7,047$5,429
10 years$9,050$8,180$7,386$6,662$6,004$4,472
11 years$8,143$7,282$6,502$5,798$5,164$3,714
12 years$7,388$6,536$5,771$5,086$4,475$3,106
13 years$6,750$5,907$5,156$4,490$3,902$2,612
14 years$6,204$5,369$4,632$3,986$3,421$2,206
15 years$5,730$4,905$4,182$3,554$3,012$1,870
16 years$5,316$4,500$3,792$3,183$2,662$1,590
17 years$4,952$4,144$3,451$2,860$2,360$1,356
18 years$4,628$3,830$3,150$2,577$2,098$1,158
19 years$4,339$3,549$2,884$2,329$1,870$991
20 years$4,078$3,298$2,646$2,109$1,671$850
21 years$3,843$3,072$2,434$1,914$1,495$729
22 years$3,630$2,868$2,244$1,740$1,340$627
23 years$3,435$2,682$2,071$1,585$1,203$539
24 years$3,257$2,513$1,916$1,446$1,081$464
25 years$3,094$2,358$1,774$1,320$973$400
26 years$2,943$2,216$1,646$1,207$876$344
27 years$2,804$2,086$1,528$1,105$790$297
28 years$2,675$1,966$1,421$1,012$713$256
29 years$2,555$1,854$1,322$928$644$221
30 years$2,443$1,751$1,231$852$582$191
31 years$2,338$1,655$1,148$782$526$165
32 years$2,241$1,566$1,071$719$476$142
33 years$2,149$1,483$1,000$661$431$123
34 years$2,063$1,406$934$608$390$106
35 years$1,982$1,333$874$560$353$92
36 years$1,906$1,266$817$516$320$79
37 years$1,834$1,202$765$475$290$69
38 years$1,766$1,142$716$438$263$59
39 years$1,702$1,086$671$404$238$51
40 years$1,641$1,034$629$373$216$44
41 years$1,583$984$590$344$196$38
42 years$1,528$937$553$317$178$33
43 years$1,476$893$519$293$162$29
44 years$1,426$851$487$270$147$25
45 years$1,378$811$458$250$133$21
46 years$1,333$774$430$231$121$19
47 years$1,290$739$404$213$110$16
48 years$1,249$705$379$197$100$14
49 years$1,209$673$357$182$91$12
50 years$1,172$643$335$168$82$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,200,000, adding $6,211 every year, while hoping to spend $38,290 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: 71/16/13 Blend
39$1,200,000$1,200,000$1,200,000$1,200,000
40$1,328,807$1,265,207$1,246,607$1,418,983
41$1,423,605$1,286,462$1,247,628$1,500,849
42$1,526,789$1,307,475$1,247,400$1,585,187
43$1,639,174$1,328,193$1,245,840$1,676,499
44$1,761,657$1,348,562$1,242,863$1,775,466
45$1,895,225$1,368,521$1,238,378$1,882,839
46$2,040,964$1,388,004$1,232,289$1,999,443
47$2,200,069$1,406,944$1,224,498$2,126,189
48$2,373,858$1,425,265$1,214,901$2,264,081
49$2,563,778$1,442,891$1,203,387$2,414,225
50$2,771,426$1,459,735$1,189,843$2,577,840
51$2,998,558$1,475,707$1,174,149$2,756,268
52$3,247,106$1,490,713$1,156,179$2,950,989
53$3,519,202$1,504,649$1,135,801$3,163,637
54$3,817,190$1,517,406$1,112,880$3,396,007
55$4,143,651$1,528,867$1,087,269$3,650,082
56$4,501,431$1,538,908$1,058,820$3,928,047
57$4,893,661$1,547,399$1,027,374$4,232,309
58$5,323,790$1,554,197$992,767$4,565,520
59$5,795,618$1,559,155$954,827$4,930,606
60$6,313,330$1,562,112$913,372$5,330,791
61$6,881,535$1,562,901$868,216$5,769,627
62$7,505,311$1,561,342$819,160$6,251,032
63$8,190,251$1,557,246$766,000$6,779,320
64$8,942,515$1,550,410$708,520$7,359,252
65$9,768,892$1,540,620$646,495$7,996,070
66$10,676,857$1,527,649$579,691$8,695,557
67$11,674,648$1,511,255$507,863$9,464,082
68$12,771,340$1,491,184$430,754$10,308,670
69$13,976,930$1,467,165$348,096$11,237,062
70$15,302,431$1,438,911$259,612$12,257,789
71$16,759,979$1,406,117$165,009$13,380,256
72$18,362,942$1,368,463$63,983$14,614,829
73$20,126,052$1,325,607$0$15,972,933
74$22,065,537$1,277,189$0$17,473,241
75$24,199,277$1,222,827$0$19,133,421
76$26,546,976$1,162,118$0$20,959,935
77$29,130,340$1,094,634$0$22,969,695
78$31,973,288$1,019,925$0$25,181,340
79$35,102,173$937,511$0$27,615,409
80$38,546,035$846,889$0$30,294,538
81$42,336,869$747,525$0$33,243,671
82$46,509,931$638,855$0$36,490,298
83$51,104,068$520,283$0$40,064,714
84$56,162,086$391,180$0$44,000,305
85$61,731,152$250,881$0$48,333,864
86$67,863,239$98,684$0$53,105,937
87$74,615,618$0$0$58,361,210
88$82,051,395$0$0$64,160,573
89$90,240,109$0$0$70,566,386
90$99,258,384$0$0$77,621,228
91$109,190,658$0$0$85,391,161
92$120,129,973$0$0$93,948,984
93$132,178,857$0$0$103,374,914
94$145,450,289$0$0$113,757,347
95$160,068,767$0$0$125,193,692
96$176,171,480$0$0$137,791,286
97$193,909,605$0$0$151,668,412
98$213,449,730$0$0$166,955,411
99$234,975,430$0$0$183,795,913
100$258,688,997$0$0$202,348,195