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%19.2%
1 years$101,572$100,667$99,785$98,923$98,082$94,452
2 years$50,283$49,347$48,439$47,559$46,706$43,089
3 years$33,189$32,249$31,343$30,472$29,632$26,143
4 years$24,644$23,706$22,810$21,953$21,134$17,799
5 years$19,518$18,586$17,701$16,862$16,066$12,894
6 years$16,102$15,177$14,305$13,485$12,712$9,705
7 years$13,663$12,745$11,888$11,087$10,338$7,496
8 years$11,834$10,925$10,082$9,300$8,577$5,896
9 years$10,413$9,512$8,683$7,922$7,223$4,700
10 years$9,276$8,385$7,570$6,829$6,154$3,785
11 years$8,347$7,464$6,665$5,943$5,293$3,072
12 years$7,573$6,700$5,915$5,213$4,587$2,509
13 years$6,919$6,055$5,285$4,602$4,000$2,059
14 years$6,359$5,503$4,748$4,085$3,506$1,696
15 years$5,873$5,027$4,287$3,643$3,087$1,402
16 years$5,449$4,613$3,887$3,262$2,728$1,162
17 years$5,076$4,248$3,537$2,931$2,419$965
18 years$4,744$3,925$3,229$2,641$2,151$802
19 years$4,447$3,638$2,956$2,387$1,917$668
20 years$4,180$3,381$2,713$2,162$1,712$557
21 years$3,939$3,149$2,495$1,962$1,532$465
22 years$3,721$2,939$2,300$1,784$1,374$389
23 years$3,521$2,749$2,123$1,625$1,233$325
24 years$3,339$2,576$1,964$1,482$1,108$272
25 years$3,171$2,417$1,819$1,353$997$228
26 years$3,017$2,272$1,687$1,237$898$190
27 years$2,874$2,138$1,566$1,132$810$160
28 years$2,741$2,015$1,456$1,038$731$134
29 years$2,618$1,901$1,355$951$660$112
30 years$2,504$1,795$1,262$873$596$94
31 years$2,397$1,697$1,177$802$539$79
32 years$2,297$1,606$1,098$737$488$66
33 years$2,203$1,520$1,025$678$441$55
34 years$2,115$1,441$958$624$400$46
35 years$2,032$1,367$895$574$362$39
36 years$1,954$1,297$838$529$328$33
37 years$1,880$1,232$784$487$297$27
38 years$1,810$1,171$734$449$269$23
39 years$1,744$1,113$688$414$244$19
40 years$1,682$1,059$645$382$222$16
41 years$1,622$1,008$605$352$201$14
42 years$1,566$960$567$325$182$11
43 years$1,512$915$532$300$166$10
44 years$1,461$872$500$277$150$8
45 years$1,413$832$469$256$136$7
46 years$1,366$793$441$236$124$6
47 years$1,322$757$414$218$112$5
48 years$1,280$723$389$202$102$4
49 years$1,240$690$366$187$93$3
50 years$1,201$659$344$172$84$3

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 $3,320 every year, while hoping to spend $59,902 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: 30/48/22 Blend
39$1,230,000$1,230,000$1,230,000$1,230,000
40$1,358,885$1,293,695$1,274,630$1,390,250
41$1,433,756$1,293,350$1,253,594$1,414,176
42$1,514,256$1,290,982$1,229,847$1,434,321
43$1,600,896$1,286,426$1,203,233$1,454,746
44$1,694,237$1,279,511$1,173,591$1,475,515
45$1,794,896$1,270,053$1,140,753$1,496,700
46$1,903,549$1,257,860$1,104,542$1,518,387
47$2,020,941$1,242,724$1,064,774$1,540,678
48$2,147,888$1,224,429$1,021,255$1,563,688
49$2,285,289$1,202,743$973,783$1,587,553
50$2,434,132$1,177,421$922,149$1,612,429
51$2,595,503$1,148,204$866,130$1,638,493
52$2,770,596$1,114,817$805,497$1,665,950
53$2,960,725$1,076,971$740,010$1,695,034
54$3,167,334$1,034,358$669,415$1,726,011
55$3,392,013$986,652$593,451$1,759,181
56$3,636,509$933,509$511,843$1,794,889
57$3,902,747$874,565$424,304$1,833,520
58$4,192,844$809,436$330,534$1,875,515
59$4,509,129$737,713$230,222$1,921,366
60$4,854,167$658,968$123,041$1,971,632
61$5,230,779$572,745$8,651$2,026,938
62$5,642,073$478,563$0$2,087,990
63$6,091,468$375,917$0$2,182,204
64$6,582,730$264,268$0$2,287,739
65$7,120,002$143,052$0$2,403,647
66$7,707,851$11,669$0$2,531,135
67$8,351,300$0$0$2,671,546
68$9,055,885$0$0$2,895,308
69$9,827,699$0$0$3,147,365
70$10,673,454$0$0$3,423,768
71$11,600,540$0$0$3,726,960
72$12,617,099$0$0$4,059,626
73$13,732,096$0$0$4,424,729
74$14,955,406$0$0$4,825,530
75$16,297,907$0$0$5,265,621
76$17,771,580$0$0$5,748,960
77$19,389,623$0$0$6,279,905
78$21,166,575$0$0$6,863,261
79$23,118,451$0$0$7,504,318
80$25,262,895$0$0$8,208,903
81$27,619,342$0$0$8,983,440
82$30,209,205$0$0$9,835,002
83$33,056,073$0$0$10,771,384
84$36,185,937$0$0$11,801,172
85$39,627,428$0$0$12,933,830
86$43,412,093$0$0$14,179,779
87$47,574,687$0$0$15,550,507
88$52,153,505$0$0$17,058,667
89$57,190,738$0$0$18,718,203
90$62,732,872$0$0$20,544,477
91$68,831,127$0$0$22,554,417
92$75,541,939$0$0$24,766,675
93$82,927,489$0$0$27,201,802
94$91,056,294$0$0$29,882,443
95$100,003,848$0$0$32,833,551
96$109,853,337$0$0$36,082,619
97$120,696,421$0$0$39,659,943
98$132,634,098$0$0$43,598,906
99$145,777,656$0$0$47,936,294
100$160,249,727$0$0$52,712,640