Can I retire at age 40 with 1,240,000?

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 $1,240,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.9%
1 years$102,398$101,486$100,596$99,727$98,879$96,883
2 years$50,692$49,748$48,833$47,946$47,085$45,083
3 years$33,459$32,511$31,598$30,719$29,873$27,927
4 years$24,844$23,899$22,995$22,132$21,306$19,431
5 years$19,677$18,737$17,845$16,999$16,196$14,398
6 years$16,233$15,300$14,422$13,594$12,815$11,096
7 years$13,774$12,849$11,985$11,177$10,422$8,781
8 years$11,930$11,014$10,164$9,376$8,646$7,084
9 years$10,497$9,590$8,754$7,986$7,282$5,796
10 years$9,352$8,453$7,632$6,884$6,204$4,795
11 years$8,415$7,525$6,719$5,991$5,336$4,001
12 years$7,635$6,754$5,963$5,255$4,624$3,361
13 years$6,975$6,104$5,328$4,640$4,032$2,840
14 years$6,410$5,548$4,787$4,118$3,535$2,410
15 years$5,921$5,068$4,322$3,673$3,112$2,053
16 years$5,494$4,650$3,918$3,289$2,750$1,754
17 years$5,117$4,283$3,566$2,955$2,439$1,503
18 years$4,782$3,957$3,255$2,663$2,168$1,291
19 years$4,483$3,668$2,980$2,406$1,933$1,111
20 years$4,214$3,408$2,735$2,179$1,726$957
21 years$3,971$3,174$2,515$1,978$1,545$826
22 years$3,751$2,963$2,318$1,798$1,385$713
23 years$3,550$2,771$2,141$1,638$1,243$617
24 years$3,366$2,597$1,980$1,494$1,117$534
25 years$3,197$2,437$1,834$1,364$1,005$463
26 years$3,041$2,290$1,701$1,247$906$401
27 years$2,897$2,155$1,579$1,142$817$348
28 years$2,764$2,031$1,468$1,046$737$302
29 years$2,640$1,916$1,366$959$665$262
30 years$2,524$1,810$1,272$880$601$227
31 years$2,416$1,711$1,186$809$543$197
32 years$2,315$1,619$1,107$743$492$172
33 years$2,221$1,533$1,033$683$445$149
34 years$2,132$1,453$966$629$403$130
35 years$2,048$1,378$903$579$365$113
36 years$1,969$1,308$844$533$331$98
37 years$1,895$1,242$790$491$300$85
38 years$1,825$1,180$740$453$272$74
39 years$1,758$1,123$693$417$246$64
40 years$1,695$1,068$650$385$223$56
41 years$1,635$1,017$609$355$203$49
42 years$1,579$968$572$328$184$42
43 years$1,525$922$536$303$167$37
44 years$1,473$879$504$279$152$32
45 years$1,424$839$473$258$138$28
46 years$1,378$800$444$238$125$24
47 years$1,333$763$417$220$113$21
48 years$1,290$729$392$203$103$18
49 years$1,250$696$369$188$94$16
50 years$1,211$665$346$174$85$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,240,000, adding $6,490 every year, while hoping to spend $51,278 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: 62/17/21 Blend
39$1,240,000$1,240,000$1,240,000$1,240,000
40$1,373,174$1,307,454$1,288,234$1,450,432
41$1,458,679$1,316,960$1,276,831$1,512,887
42$1,551,186$1,325,213$1,263,327$1,574,768
43$1,651,356$1,332,098$1,247,597$1,641,161
44$1,759,915$1,337,491$1,229,513$1,712,513
45$1,877,661$1,341,263$1,208,936$1,789,317
46$2,005,471$1,343,274$1,185,724$1,872,116
47$2,144,311$1,343,376$1,159,727$1,961,511
48$2,295,243$1,341,413$1,130,790$2,058,165
49$2,459,434$1,337,219$1,098,748$2,162,813
50$2,638,170$1,330,617$1,063,430$2,276,263
51$2,832,865$1,321,419$1,024,657$2,399,410
52$3,045,076$1,309,426$982,241$2,533,241
53$3,276,515$1,294,429$935,987$2,678,846
54$3,529,067$1,276,204$885,690$2,837,429
55$3,804,807$1,254,513$831,136$3,010,320
56$4,106,020$1,229,107$772,102$3,198,986
57$4,435,219$1,199,719$708,353$3,405,047
58$4,795,175$1,166,068$639,646$3,630,291
59$5,188,933$1,127,856$565,725$3,876,694
60$5,619,852$1,084,769$486,324$4,146,435
61$6,091,627$1,036,472$401,165$4,441,919
62$6,608,326$982,613$309,958$4,765,800
63$7,174,433$922,818$212,399$5,121,009
64$7,794,883$856,694$108,172$5,510,779
65$8,475,111$783,822$0$5,938,678
66$9,221,104$703,761$0$6,409,329
67$10,039,457$616,046$0$6,952,302
68$10,937,433$520,183$0$7,548,207
69$11,923,032$415,653$0$8,202,417
70$13,005,066$301,905$0$8,920,855
71$14,193,243$178,359$0$9,710,048
72$15,498,257$44,401$0$10,577,193
73$16,931,887$0$0$11,530,224
74$18,507,110$0$0$12,596,705
75$20,238,224$0$0$13,777,956
76$22,140,978$0$0$15,076,431
77$24,232,725$0$0$16,503,984
78$26,532,580$0$0$18,073,675
79$29,061,607$0$0$19,799,892
80$31,843,009$0$0$21,698,488
81$34,902,354$0$0$23,786,930
82$38,267,810$0$0$26,084,462
83$41,970,413$0$0$28,612,287
84$46,044,358$0$0$31,393,767
85$50,527,325$0$0$34,454,643
86$55,460,827$0$0$37,823,278
87$60,890,608$0$0$41,530,923
88$66,867,068$0$0$45,612,013
89$73,445,744$0$0$50,104,489
90$80,687,830$0$0$55,050,159
91$88,660,753$0$0$60,495,091
92$97,438,811$0$0$66,490,045
93$107,103,873$0$0$73,090,954
94$117,746,150$0$0$80,359,453
95$129,465,046$0$0$88,363,454
96$142,370,097$0$0$97,177,795
97$156,582,000$0$0$106,884,939
98$172,233,758$0$0$117,575,754
99$189,471,927$0$0$129,350,371
100$208,458,004$0$0$142,319,130