Can I retire at age 40 with 1,230,000?

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 $1,230,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.8%
1 years$101,572$100,667$99,785$98,923$98,082$96,937
2 years$50,283$49,347$48,439$47,559$46,706$45,553
3 years$33,189$32,249$31,343$30,472$29,632$28,508
4 years$24,644$23,706$22,810$21,953$21,134$20,046
5 years$19,518$18,586$17,701$16,862$16,066$15,018
6 years$16,102$15,177$14,305$13,485$12,712$11,706
7 years$13,663$12,745$11,888$11,087$10,338$9,374
8 years$11,834$10,925$10,082$9,300$8,577$7,654
9 years$10,413$9,512$8,683$7,922$7,223$6,342
10 years$9,276$8,385$7,570$6,829$6,154$5,314
11 years$8,347$7,464$6,665$5,943$5,293$4,493
12 years$7,573$6,700$5,915$5,213$4,587$3,826
13 years$6,919$6,055$5,285$4,602$4,000$3,277
14 years$6,359$5,503$4,748$4,085$3,506$2,821
15 years$5,873$5,027$4,287$3,643$3,087$2,438
16 years$5,449$4,613$3,887$3,262$2,728$2,114
17 years$5,076$4,248$3,537$2,931$2,419$1,838
18 years$4,744$3,925$3,229$2,641$2,151$1,603
19 years$4,447$3,638$2,956$2,387$1,917$1,400
20 years$4,180$3,381$2,713$2,162$1,712$1,226
21 years$3,939$3,149$2,495$1,962$1,532$1,075
22 years$3,721$2,939$2,300$1,784$1,374$943
23 years$3,521$2,749$2,123$1,625$1,233$829
24 years$3,339$2,576$1,964$1,482$1,108$730
25 years$3,171$2,417$1,819$1,353$997$643
26 years$3,017$2,272$1,687$1,237$898$566
27 years$2,874$2,138$1,566$1,132$810$499
28 years$2,741$2,015$1,456$1,038$731$441
29 years$2,618$1,901$1,355$951$660$389
30 years$2,504$1,795$1,262$873$596$344
31 years$2,397$1,697$1,177$802$539$304
32 years$2,297$1,606$1,098$737$488$269
33 years$2,203$1,520$1,025$678$441$238
34 years$2,115$1,441$958$624$400$210
35 years$2,032$1,367$895$574$362$186
36 years$1,954$1,297$838$529$328$165
37 years$1,880$1,232$784$487$297$146
38 years$1,810$1,171$734$449$269$129
39 years$1,744$1,113$688$414$244$114
40 years$1,682$1,059$645$382$222$101
41 years$1,622$1,008$605$352$201$90
42 years$1,566$960$567$325$182$79
43 years$1,512$915$532$300$166$70
44 years$1,461$872$500$277$150$62
45 years$1,413$832$469$256$136$55
46 years$1,366$793$441$236$124$49
47 years$1,322$757$414$218$112$43
48 years$1,280$723$389$202$102$38
49 years$1,240$690$366$187$93$34
50 years$1,201$659$344$172$84$30

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,230,000, adding $2,324 every year, while hoping to spend $33,291 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: 84/5/11 Blend
39$1,230,000$1,230,000$1,230,000$1,230,000
40$1,357,857$1,292,667$1,273,602$1,469,311
41$1,460,937$1,320,587$1,280,847$1,570,490
42$1,573,416$1,348,758$1,287,218$1,676,914
43$1,696,216$1,377,159$1,292,651$1,792,801
44$1,830,355$1,405,765$1,297,080$1,919,083
45$1,976,951$1,434,547$1,300,432$2,056,788
46$2,137,237$1,463,477$1,302,634$2,207,045
47$2,312,570$1,492,522$1,303,606$2,371,100
48$2,504,442$1,521,646$1,303,267$2,550,325
49$2,714,499$1,550,810$1,301,531$2,746,230
50$2,944,552$1,579,974$1,298,306$2,960,479
51$3,196,595$1,609,091$1,293,498$3,194,907
52$3,472,825$1,638,114$1,287,007$3,451,531
53$3,775,661$1,666,989$1,278,730$3,732,578
54$4,107,767$1,695,661$1,268,557$4,040,498
55$4,472,079$1,724,068$1,256,372$4,377,992
56$4,871,828$1,752,144$1,242,058$4,748,035
57$5,310,574$1,779,819$1,225,487$5,153,905
58$5,792,240$1,807,017$1,206,528$5,599,213
59$6,321,146$1,833,658$1,185,044$6,087,939
60$6,902,050$1,859,655$1,160,890$6,624,466
61$7,540,194$1,884,913$1,133,915$7,213,627
62$8,241,355$1,909,335$1,103,962$7,860,744
63$9,011,894$1,932,814$1,070,866$8,571,682
64$9,858,821$1,955,235$1,034,453$9,352,904
65$10,789,857$1,976,478$994,544$10,211,532
66$11,813,510$1,996,413$950,949$11,155,412
67$12,939,153$2,014,902$903,471$12,193,192
68$14,177,112$2,031,798$851,903$13,334,399
69$15,538,766$2,046,944$796,030$14,589,534
70$17,036,649$2,060,174$735,626$15,970,166
71$18,684,574$2,071,308$670,455$17,489,043
72$20,497,758$2,080,160$600,273$19,160,217
73$22,492,968$2,086,527$524,821$20,999,167
74$24,688,679$2,090,195$443,831$23,022,955
75$27,105,249$2,090,939$357,024$25,250,380
76$29,765,105$2,088,516$264,105$27,702,159
77$32,692,963$2,082,670$164,770$30,401,123
78$35,916,055$2,073,131$58,699$33,372,428
79$39,464,387$2,059,608$0$36,643,799
80$43,371,023$2,041,798$0$40,252,184
81$47,672,396$2,019,375$0$44,232,621
82$52,408,651$1,991,995$0$48,615,357
83$57,624,025$1,959,294$0$53,441,322
84$63,367,262$1,920,886$0$58,755,618
85$69,692,075$1,876,362$0$64,607,943
86$76,657,652$1,825,289$0$71,053,064
87$84,329,213$1,767,209$0$78,151,330
88$92,778,626$1,701,635$0$85,969,242
89$102,085,087$1,628,056$0$94,580,082
90$112,335,861$1,545,926$0$104,064,603
91$123,627,115$1,454,673$0$114,511,793
92$136,064,816$1,353,687$0$126,019,713
93$149,765,737$1,242,327$0$138,696,421
94$164,858,554$1,119,912$0$152,660,997
95$181,485,064$985,726$0$168,044,661
96$199,801,523$839,010$0$184,992,015
97$219,980,118$678,961$0$203,662,408
98$242,210,594$504,733$0$224,231,438
99$266,702,041$315,432$0$246,892,609
100$293,684,874$110,113$0$271,859,162