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

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 $1,230,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$101,572$100,667$99,785$98,923$98,082$97,669
2 years$50,283$49,347$48,439$47,559$46,706$46,288
3 years$33,189$32,249$31,343$30,472$29,632$29,224
4 years$24,644$23,706$22,810$21,953$21,134$20,738
5 years$19,518$18,586$17,701$16,862$16,066$15,683
6 years$16,102$15,177$14,305$13,485$12,712$12,343
7 years$13,663$12,745$11,888$11,087$10,338$9,983
8 years$11,834$10,925$10,082$9,300$8,577$8,236
9 years$10,413$9,512$8,683$7,922$7,223$6,896
10 years$9,276$8,385$7,570$6,829$6,154$5,841
11 years$8,347$7,464$6,665$5,943$5,293$4,993
12 years$7,573$6,700$5,915$5,213$4,587$4,300
13 years$6,919$6,055$5,285$4,602$4,000$3,726
14 years$6,359$5,503$4,748$4,085$3,506$3,245
15 years$5,873$5,027$4,287$3,643$3,087$2,839
16 years$5,449$4,613$3,887$3,262$2,728$2,492
17 years$5,076$4,248$3,537$2,931$2,419$2,195
18 years$4,744$3,925$3,229$2,641$2,151$1,938
19 years$4,447$3,638$2,956$2,387$1,917$1,715
20 years$4,180$3,381$2,713$2,162$1,712$1,521
21 years$3,939$3,149$2,495$1,962$1,532$1,352
22 years$3,721$2,939$2,300$1,784$1,374$1,203
23 years$3,521$2,749$2,123$1,625$1,233$1,072
24 years$3,339$2,576$1,964$1,482$1,108$956
25 years$3,171$2,417$1,819$1,353$997$854
26 years$3,017$2,272$1,687$1,237$898$763
27 years$2,874$2,138$1,566$1,132$810$683
28 years$2,741$2,015$1,456$1,038$731$611
29 years$2,618$1,901$1,355$951$660$547
30 years$2,504$1,795$1,262$873$596$491
31 years$2,397$1,697$1,177$802$539$440
32 years$2,297$1,606$1,098$737$488$395
33 years$2,203$1,520$1,025$678$441$354
34 years$2,115$1,441$958$624$400$318
35 years$2,032$1,367$895$574$362$286
36 years$1,954$1,297$838$529$328$257
37 years$1,880$1,232$784$487$297$231
38 years$1,810$1,171$734$449$269$208
39 years$1,744$1,113$688$414$244$187
40 years$1,682$1,059$645$382$222$168
41 years$1,622$1,008$605$352$201$151
42 years$1,566$960$567$325$182$136
43 years$1,512$915$532$300$166$122
44 years$1,461$872$500$277$150$110
45 years$1,413$832$469$256$136$99
46 years$1,366$793$441$236$124$89
47 years$1,322$757$414$218$112$80
48 years$1,280$723$389$202$102$72
49 years$1,240$690$366$187$93$65
50 years$1,201$659$344$172$84$59

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 $3,493 every year, while hoping to spend $39,882 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: 88/6/6 Blend
39$1,230,000$1,230,000$1,230,000$1,230,000
40$1,359,063$1,293,873$1,274,808$1,478,111
41$1,455,253$1,314,839$1,275,080$1,577,089
42$1,559,918$1,335,495$1,274,024$1,679,950
43$1,673,880$1,355,785$1,271,555$1,791,721
44$1,798,044$1,375,646$1,267,580$1,913,268
45$1,933,406$1,395,014$1,262,005$2,045,549
46$2,081,062$1,413,818$1,254,730$2,189,615
47$2,242,217$1,431,982$1,245,651$2,346,625
48$2,418,200$1,449,426$1,234,657$2,517,855
49$2,610,473$1,466,064$1,221,634$2,704,710
50$2,820,644$1,481,804$1,206,462$2,908,738
51$3,050,486$1,496,549$1,189,015$3,131,643
52$3,301,949$1,510,193$1,169,160$3,375,302
53$3,577,181$1,522,626$1,146,760$3,641,782
54$3,878,547$1,533,728$1,121,670$3,933,362
55$4,208,652$1,543,375$1,093,740$4,252,550
56$4,570,365$1,551,430$1,062,810$4,602,108
57$4,966,844$1,557,752$1,028,716$4,985,083
58$5,401,568$1,562,188$991,284$5,404,827
59$5,878,369$1,564,576$950,333$5,865,035
60$6,401,468$1,564,746$905,675$6,369,778
61$6,975,514$1,562,514$857,111$6,923,541
62$7,605,626$1,557,688$804,434$7,531,264
63$8,297,447$1,550,061$747,429$8,198,392
64$9,057,188$1,539,416$685,870$8,930,922
65$9,891,696$1,525,521$619,521$9,735,464
66$10,808,509$1,508,132$548,136$10,619,298
67$11,815,935$1,486,989$471,456$11,590,449
68$12,923,125$1,461,816$389,214$12,657,756
69$14,140,160$1,432,321$301,129$13,830,962
70$15,478,146$1,398,195$206,907$15,120,799
71$16,949,322$1,359,112$106,244$16,539,096
72$18,567,169$1,314,724$0$18,098,884
73$20,346,540$1,264,665$0$19,814,602
74$22,303,800$1,208,547$0$21,709,261
75$24,456,982$1,145,960$0$23,793,513
76$26,825,951$1,076,469$0$26,086,596
77$29,432,597$999,615$0$28,609,709
78$32,301,039$914,913$0$31,386,211
79$35,457,851$821,849$0$34,441,841
80$38,932,313$719,882$0$37,804,961
81$42,756,691$608,437$0$41,506,821
82$46,966,533$486,911$0$45,581,860
83$51,601,012$354,662$0$50,068,025
84$56,703,291$211,016$0$55,007,130
85$62,320,930$55,259$0$60,445,254
86$68,506,336$0$0$66,433,171
87$75,317,256$0$0$73,034,318
88$82,817,323$0$0$80,307,415
89$91,076,655$0$0$88,316,811
90$100,172,516$0$0$97,137,434
91$110,190,045$0$0$106,851,848
92$121,223,060$0$0$117,551,034
93$133,374,942$0$0$129,335,246
94$146,759,610$0$0$142,314,959
95$161,502,597$0$0$156,611,910
96$177,742,235$0$0$172,360,245
97$195,630,957$0$0$189,707,789
98$215,336,737$0$0$208,817,437
99$237,044,677$0$0$229,868,692
100$260,958,749$0$0$253,059,359