Can I retire at age 40 with 1,250,000?

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 $1,250,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.5%
1 years$103,224$102,304$101,407$100,532$99,677$97,031
2 years$51,101$50,149$49,227$48,333$47,465$44,818
3 years$33,729$32,773$31,853$30,967$30,114$27,548
4 years$25,045$24,092$23,181$22,310$21,477$19,013
5 years$19,835$18,888$17,989$17,136$16,327$13,970
6 years$16,364$15,424$14,538$13,704$12,919$10,673
7 years$13,885$12,953$12,081$11,267$10,506$8,371
8 years$12,027$11,103$10,246$9,451$8,716$6,690
9 years$10,582$9,667$8,825$8,051$7,340$5,422
10 years$9,427$8,521$7,694$6,940$6,254$4,441
11 years$8,483$7,586$6,773$6,040$5,379$3,668
12 years$7,696$6,809$6,011$5,298$4,661$3,049
13 years$7,031$6,153$5,371$4,677$4,065$2,549
14 years$6,462$5,593$4,825$4,152$3,563$2,139
15 years$5,969$5,109$4,357$3,703$3,137$1,802
16 years$5,538$4,688$3,950$3,315$2,773$1,523
17 years$5,158$4,317$3,594$2,979$2,458$1,290
18 years$4,821$3,989$3,281$2,684$2,186$1,095
19 years$4,519$3,697$3,004$2,426$1,948$931
20 years$4,248$3,436$2,757$2,197$1,740$792
21 years$4,004$3,200$2,536$1,994$1,557$675
22 years$3,781$2,987$2,337$1,813$1,396$576
23 years$3,579$2,794$2,158$1,651$1,253$492
24 years$3,393$2,618$1,996$1,506$1,126$421
25 years$3,223$2,457$1,848$1,375$1,014$360
26 years$3,066$2,309$1,714$1,257$913$308
27 years$2,921$2,173$1,592$1,151$823$263
28 years$2,786$2,047$1,480$1,054$743$226
29 years$2,661$1,931$1,377$967$671$193
30 years$2,544$1,824$1,283$887$606$166
31 years$2,436$1,724$1,196$815$548$142
32 years$2,334$1,632$1,116$749$496$122
33 years$2,239$1,545$1,042$689$448$104
34 years$2,149$1,464$973$634$406$89
35 years$2,065$1,389$910$583$368$77
36 years$1,985$1,318$851$537$333$66
37 years$1,910$1,252$797$495$302$56
38 years$1,840$1,190$746$456$274$48
39 years$1,772$1,132$699$421$248$42
40 years$1,709$1,077$655$388$225$36
41 years$1,649$1,025$614$358$204$31
42 years$1,591$976$576$330$185$26
43 years$1,537$930$541$305$168$23
44 years$1,485$886$508$282$153$19
45 years$1,436$845$477$260$139$17
46 years$1,389$806$448$240$126$14
47 years$1,344$770$421$222$114$12
48 years$1,301$735$395$205$104$10
49 years$1,260$702$372$190$94$9
50 years$1,220$670$349$175$86$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,250,000, adding $4,867 every year, while hoping to spend $30,354 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: 39/32/29 Blend
39$1,250,000$1,250,000$1,250,000$1,250,000
40$1,382,520$1,316,270$1,296,895$1,424,397
41$1,491,241$1,348,471$1,308,045$1,487,706
42$1,610,034$1,381,232$1,318,551$1,552,973
43$1,739,894$1,414,550$1,328,359$1,622,976
44$1,881,918$1,448,417$1,337,413$1,698,168
45$2,037,311$1,482,827$1,345,655$1,779,047
46$2,207,403$1,517,772$1,353,020$1,866,162
47$2,393,656$1,553,241$1,359,445$1,960,119
48$2,597,682$1,589,223$1,364,859$2,061,586
49$2,821,255$1,625,703$1,369,190$2,171,299
50$3,066,327$1,662,668$1,372,363$2,290,071
51$3,335,053$1,700,099$1,374,297$2,418,796
52$3,629,801$1,737,976$1,374,909$2,558,461
53$3,953,183$1,776,279$1,374,110$2,710,156
54$4,308,073$1,814,982$1,371,809$2,875,079
55$4,697,640$1,854,060$1,367,908$3,054,554
56$5,125,372$1,893,482$1,362,306$3,250,041
57$5,595,113$1,933,215$1,354,896$3,463,149
58$6,111,096$1,973,224$1,345,566$3,695,652
59$6,677,986$2,013,471$1,334,201$3,949,505
60$7,300,921$2,053,911$1,320,677$4,226,868
61$7,985,561$2,094,499$1,304,866$4,530,118
62$8,738,143$2,135,184$1,286,634$4,861,879
63$9,565,537$2,175,912$1,265,840$5,225,042
64$10,475,313$2,216,622$1,242,336$5,622,798
65$11,475,809$2,257,251$1,215,969$6,058,662
66$12,576,215$2,297,729$1,186,577$6,536,513
67$13,786,653$2,337,982$1,153,991$7,060,624
68$15,118,277$2,377,929$1,118,035$7,635,711
69$16,583,376$2,417,482$1,078,525$8,266,970
70$18,195,491$2,456,550$1,035,266$8,960,132
71$19,969,541$2,495,030$988,057$9,721,514
72$21,921,965$2,532,817$936,687$10,558,083
73$24,070,875$2,569,795$880,936$11,477,518
74$26,436,229$2,605,840$820,572$12,488,286
75$29,040,018$2,640,820$755,355$13,599,723
76$31,906,473$2,674,594$685,033$14,822,119
77$35,062,295$2,707,010$609,344$16,166,821
78$38,536,904$2,737,908$528,011$17,646,335
79$42,362,717$2,767,115$440,749$19,274,453
80$46,575,458$2,794,447$347,257$21,066,374
81$51,214,488$2,819,708$247,223$23,038,857
82$56,323,181$2,842,690$140,321$25,210,374
83$61,949,333$2,863,169$26,209$27,601,292
84$68,145,610$2,880,909$0$30,234,058
85$74,970,047$2,895,658$0$33,162,992
86$82,486,594$2,907,148$0$36,396,376
87$90,765,721$2,915,093$0$39,956,283
88$99,885,082$2,919,190$0$43,875,984
89$109,930,248$2,919,118$0$48,192,146
90$120,995,513$2,914,534$0$52,945,180
91$133,184,785$2,905,076$0$58,179,619
92$146,612,566$2,890,357$0$63,944,545
93$161,405,033$2,869,970$0$70,294,048
94$177,701,228$2,843,480$0$77,287,737
95$195,654,371$2,810,429$0$84,991,310
96$215,433,304$2,770,327$0$93,477,165
97$237,224,088$2,722,660$0$102,825,093
98$261,231,754$2,666,879$0$113,123,028
99$287,682,242$2,602,405$0$124,467,879
100$316,824,533$2,528,625$0$136,966,444