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%11.8%
1 years$101,572$100,667$99,785$98,923$98,082$97,341
2 years$50,283$49,347$48,439$47,559$46,706$45,959
3 years$33,189$32,249$31,343$30,472$29,632$28,903
4 years$24,644$23,706$22,810$21,953$21,134$20,427
5 years$19,518$18,586$17,701$16,862$16,066$15,384
6 years$16,102$15,177$14,305$13,485$12,712$12,056
7 years$13,663$12,745$11,888$11,087$10,338$9,708
8 years$11,834$10,925$10,082$9,300$8,577$7,972
9 years$10,413$9,512$8,683$7,922$7,223$6,644
10 years$9,276$8,385$7,570$6,829$6,154$5,601
11 years$8,347$7,464$6,665$5,943$5,293$4,764
12 years$7,573$6,700$5,915$5,213$4,587$4,083
13 years$6,919$6,055$5,285$4,602$4,000$3,520
14 years$6,359$5,503$4,748$4,085$3,506$3,050
15 years$5,873$5,027$4,287$3,643$3,087$2,653
16 years$5,449$4,613$3,887$3,262$2,728$2,317
17 years$5,076$4,248$3,537$2,931$2,419$2,029
18 years$4,744$3,925$3,229$2,641$2,151$1,782
19 years$4,447$3,638$2,956$2,387$1,917$1,568
20 years$4,180$3,381$2,713$2,162$1,712$1,383
21 years$3,939$3,149$2,495$1,962$1,532$1,221
22 years$3,721$2,939$2,300$1,784$1,374$1,080
23 years$3,521$2,749$2,123$1,625$1,233$957
24 years$3,339$2,576$1,964$1,482$1,108$848
25 years$3,171$2,417$1,819$1,353$997$753
26 years$3,017$2,272$1,687$1,237$898$669
27 years$2,874$2,138$1,566$1,132$810$595
28 years$2,741$2,015$1,456$1,038$731$529
29 years$2,618$1,901$1,355$951$660$471
30 years$2,504$1,795$1,262$873$596$419
31 years$2,397$1,697$1,177$802$539$374
32 years$2,297$1,606$1,098$737$488$333
33 years$2,203$1,520$1,025$678$441$297
34 years$2,115$1,441$958$624$400$265
35 years$2,032$1,367$895$574$362$236
36 years$1,954$1,297$838$529$328$211
37 years$1,880$1,232$784$487$297$188
38 years$1,810$1,171$734$449$269$168
39 years$1,744$1,113$688$414$244$150
40 years$1,682$1,059$645$382$222$134
41 years$1,622$1,008$605$352$201$120
42 years$1,566$960$567$325$182$107
43 years$1,512$915$532$300$166$96
44 years$1,461$872$500$277$150$85
45 years$1,413$832$469$256$136$76
46 years$1,366$793$441$236$124$68
47 years$1,322$757$414$218$112$61
48 years$1,280$723$389$202$102$55
49 years$1,240$690$366$187$93$49
50 years$1,201$659$344$172$84$44

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 $2,736 every year, while hoping to spend $32,045 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: 73/22/5 Blend
39$1,230,000$1,230,000$1,230,000$1,230,000
40$1,358,282$1,293,092$1,274,027$1,456,694
41$1,462,731$1,322,358$1,282,611$1,551,125
42$1,576,760$1,351,984$1,290,409$1,650,190
43$1,701,312$1,381,954$1,297,361$1,757,759
44$1,837,426$1,412,249$1,303,402$1,874,660
45$1,986,244$1,442,850$1,308,467$2,001,805
46$2,149,027$1,473,735$1,312,486$2,140,198
47$2,327,158$1,504,879$1,315,385$2,290,944
48$2,522,166$1,536,256$1,317,088$2,455,261
49$2,735,730$1,567,835$1,317,513$2,634,490
50$2,969,700$1,599,586$1,316,576$2,830,109
51$3,226,116$1,631,472$1,314,188$3,043,744
52$3,507,222$1,663,456$1,310,255$3,277,188
53$3,815,491$1,695,497$1,304,680$3,532,415
54$4,153,644$1,727,549$1,297,360$3,811,600
55$4,524,681$1,759,565$1,288,188$4,117,139
56$4,931,907$1,791,492$1,277,050$4,451,672
57$5,378,959$1,823,272$1,263,829$4,818,108
58$5,869,846$1,854,846$1,248,400$5,219,649
59$6,408,984$1,886,147$1,230,636$5,659,828
60$7,001,237$1,917,106$1,210,399$6,142,535
61$7,651,964$1,947,645$1,187,548$6,672,054
62$8,367,069$1,977,683$1,161,935$7,253,109
63$9,153,053$2,007,133$1,133,404$7,890,903
64$10,017,084$2,035,902$1,101,791$8,591,171
65$10,967,054$2,063,888$1,066,929$9,360,232
66$12,011,659$2,090,985$1,028,637$10,205,046
67$13,160,483$2,117,077$986,731$11,133,288
68$14,424,081$2,142,043$941,015$12,153,410
69$15,814,084$2,165,750$891,286$13,274,729
70$17,343,309$2,188,060$837,332$14,507,512
71$19,025,874$2,208,823$778,931$15,863,072
72$20,877,338$2,227,880$715,849$17,353,876
73$22,914,842$2,245,062$647,846$18,993,661
74$25,157,274$2,260,188$574,667$20,797,569
75$27,625,445$2,273,066$496,048$22,782,284
76$30,342,287$2,283,493$411,712$24,966,190
77$33,333,067$2,291,250$321,370$27,369,551
78$36,625,626$2,296,108$224,722$30,014,695
79$40,250,642$2,297,820$121,453$32,926,228
80$44,241,920$2,296,125$11,234$36,131,269
81$48,636,708$2,290,748$0$39,659,700
82$53,476,052$2,281,393$0$43,550,130
83$58,805,178$2,267,750$0$47,834,185
84$64,673,923$2,249,487$0$52,551,280
85$71,137,205$2,226,254$0$57,745,514
86$78,255,538$2,197,679$0$63,465,482
87$86,095,605$2,163,367$0$69,764,736
88$94,730,885$2,122,900$0$76,702,292
89$104,242,350$2,075,837$0$84,343,187
90$114,719,225$2,021,709$0$92,759,090
91$126,259,833$1,960,019$0$102,028,983
92$138,972,518$1,890,243$0$112,239,906
93$152,976,675$1,811,824$0$123,487,776
94$168,403,867$1,724,175$0$135,878,298
95$185,399,076$1,626,674$0$149,527,958
96$204,122,064$1,518,663$0$164,565,128
97$224,748,883$1,399,446$0$181,131,274
98$247,473,538$1,268,288$0$199,382,297
99$272,509,817$1,124,412$0$219,489,999
100$300,093,306$966,996$0$241,643,713