Can I retire at age 40 with 1,260,000?

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 $1,260,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.8%
1 years$104,050$103,123$102,219$101,336$100,474$96,526
2 years$51,510$50,550$49,621$48,719$47,845$43,915
3 years$33,999$33,035$32,108$31,215$30,355$26,568
4 years$25,245$24,284$23,366$22,489$21,649$18,034
5 years$19,994$19,039$18,133$17,273$16,457$13,022
6 years$16,495$15,547$14,654$13,814$13,022$9,770
7 years$13,996$13,056$12,178$11,357$10,591$7,520
8 years$12,123$11,192$10,328$9,527$8,786$5,894
9 years$10,667$9,744$8,895$8,115$7,399$4,681
10 years$9,502$8,589$7,755$6,995$6,304$3,755
11 years$8,551$7,646$6,827$6,088$5,422$3,036
12 years$7,758$6,863$6,059$5,340$4,699$2,469
13 years$7,088$6,202$5,414$4,714$4,097$2,018
14 years$6,514$5,638$4,864$4,185$3,592$1,656
15 years$6,017$5,150$4,392$3,732$3,162$1,363
16 years$5,582$4,725$3,982$3,342$2,795$1,124
17 years$5,199$4,352$3,623$3,003$2,478$929
18 years$4,859$4,021$3,307$2,706$2,203$770
19 years$4,555$3,727$3,028$2,445$1,964$638
20 years$4,282$3,463$2,779$2,214$1,754$530
21 years$4,036$3,226$2,556$2,010$1,570$440
22 years$3,811$3,011$2,356$1,827$1,407$366
23 years$3,607$2,816$2,175$1,664$1,263$305
24 years$3,420$2,639$2,012$1,518$1,135$254
25 years$3,248$2,476$1,863$1,386$1,022$211
26 years$3,090$2,327$1,728$1,267$920$176
27 years$2,944$2,190$1,605$1,160$830$147
28 years$2,808$2,064$1,492$1,063$749$122
29 years$2,682$1,947$1,388$975$676$102
30 years$2,565$1,839$1,293$895$611$85
31 years$2,455$1,738$1,205$822$552$71
32 years$2,353$1,645$1,125$755$500$59
33 years$2,256$1,558$1,050$694$452$49
34 years$2,166$1,476$981$639$409$41
35 years$2,081$1,400$917$588$371$34
36 years$2,001$1,329$858$542$336$29
37 years$1,926$1,262$803$499$304$24
38 years$1,854$1,200$752$460$276$20
39 years$1,787$1,141$705$424$250$17
40 years$1,723$1,085$660$391$227$14
41 years$1,662$1,033$619$361$206$12
42 years$1,604$984$581$333$187$10
43 years$1,549$937$545$307$170$8
44 years$1,497$894$512$284$154$7
45 years$1,447$852$480$262$140$6
46 years$1,400$813$451$242$127$5
47 years$1,355$776$424$224$115$4
48 years$1,311$740$398$207$105$3
49 years$1,270$707$374$191$95$3
50 years$1,230$675$352$177$86$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,260,000, adding $2,510 every year, while hoping to spend $59,934 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: 85/9/6 Blend
39$1,260,000$1,260,000$1,260,000$1,260,000
40$1,391,109$1,324,329$1,304,799$1,508,751
41$1,469,233$1,325,452$1,284,741$1,586,971
42$1,553,317$1,324,621$1,262,001$1,664,431
43$1,643,905$1,321,677$1,236,428$1,747,614
44$1,741,596$1,316,452$1,207,861$1,837,056
45$1,847,047$1,308,766$1,176,133$1,933,344
46$1,960,979$1,298,430$1,141,067$2,037,126
47$2,084,188$1,285,241$1,102,481$2,149,116
48$2,217,544$1,268,987$1,060,183$2,270,098
49$2,362,006$1,249,440$1,013,972$2,400,938
50$2,518,629$1,226,362$963,639$2,542,586
51$2,688,572$1,199,496$908,964$2,696,093
52$2,873,111$1,168,576$849,718$2,862,612
53$3,073,647$1,133,314$785,662$3,043,416
54$3,291,723$1,093,411$716,546$3,239,906
55$3,529,036$1,048,546$642,108$3,453,626
56$3,787,455$998,382$562,076$3,686,276
57$4,069,034$942,561$476,164$3,939,732
58$4,376,034$880,705$384,074$4,216,056
59$4,710,945$812,415$285,496$4,517,524
60$5,076,507$737,269$180,106$4,846,643
61$5,475,735$654,819$67,563$5,206,174
62$5,911,949$564,594$0$5,599,161
63$6,388,804$466,096$0$6,032,321
64$6,910,324$358,796$0$6,510,823
65$7,480,939$242,140$0$7,034,432
66$8,105,529$115,539$0$7,607,665
67$8,789,466$0$0$8,235,494
68$9,538,665$0$0$8,925,542
69$10,359,641$0$0$9,694,256
70$11,259,570$0$0$10,536,917
71$12,246,355$0$0$11,460,925
72$13,328,697$0$0$12,474,433
73$14,516,185$0$0$13,586,421
74$15,819,378$0$0$14,806,778
75$17,249,906$0$0$16,146,400
76$18,820,582$0$0$17,617,288
77$20,545,520$0$0$19,232,660
78$22,440,266$0$0$21,007,080
79$24,521,948$0$0$22,956,591
80$26,809,434$0$0$25,098,866
81$29,323,510$0$0$27,453,375
82$32,087,077$0$0$30,041,568
83$35,125,363$0$0$32,887,078
84$38,466,165$0$0$36,015,939
85$42,140,106$0$0$39,456,837
86$46,180,927$0$0$43,241,376
87$50,625,801$0$0$47,404,376
88$55,515,686$0$0$51,984,202
89$60,895,710$0$0$57,023,125
90$66,815,596$0$0$62,567,718
91$73,330,128$0$0$68,669,299
92$80,499,672$0$0$75,384,411
93$88,390,740$0$0$82,775,357
94$97,076,621$0$0$90,910,783
95$106,638,067$0$0$99,866,332
96$117,164,059$0$0$109,725,350
97$128,752,642$0$0$120,579,676
98$141,511,854$0$0$132,530,507
99$155,560,738$0$0$145,689,352
100$171,030,471$0$0$160,179,083