Can I retire at age 40 with 294,000?

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 $294,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.1%
1 years$24,278$24,062$23,851$23,645$23,444$23,141
2 years$12,019$11,795$11,578$11,368$11,164$10,859
3 years$7,933$7,708$7,492$7,283$7,083$6,786
4 years$5,890$5,666$5,452$5,247$5,051$4,765
5 years$4,665$4,442$4,231$4,030$3,840$3,564
6 years$3,849$3,628$3,419$3,223$3,039$2,774
7 years$3,266$3,046$2,841$2,650$2,471$2,217
8 years$2,829$2,611$2,410$2,223$2,050$1,807
9 years$2,489$2,274$2,076$1,893$1,726$1,495
10 years$2,217$2,004$1,810$1,632$1,471$1,250
11 years$1,995$1,784$1,593$1,421$1,265$1,055
12 years$1,810$1,601$1,414$1,246$1,096$897
13 years$1,654$1,447$1,263$1,100$956$767
14 years$1,520$1,315$1,135$976$838$658
15 years$1,404$1,202$1,025$871$738$568
16 years$1,303$1,103$929$780$652$491
17 years$1,213$1,015$845$701$578$427
18 years$1,134$938$772$631$514$371
19 years$1,063$870$706$570$458$324
20 years$999$808$648$517$409$283
21 years$942$753$596$469$366$247
22 years$889$703$550$426$328$216
23 years$842$657$508$388$295$190
24 years$798$616$469$354$265$167
25 years$758$578$435$323$238$146
26 years$721$543$403$296$215$129
27 years$687$511$374$271$194$113
28 years$655$482$348$248$175$100
29 years$626$454$324$227$158$88
30 years$598$429$302$209$143$77
31 years$573$406$281$192$129$68
32 years$549$384$262$176$117$60
33 years$527$363$245$162$105$53
34 years$505$344$229$149$96$47
35 years$486$327$214$137$87$41
36 years$467$310$200$126$78$36
37 years$449$295$187$116$71$32
38 years$433$280$175$107$64$28
39 years$417$266$164$99$58$25
40 years$402$253$154$91$53$22
41 years$388$241$145$84$48$20
42 years$374$230$136$78$44$17
43 years$362$219$127$72$40$15
44 years$349$208$119$66$36$14
45 years$338$199$112$61$33$12
46 years$327$190$105$57$30$11
47 years$316$181$99$52$27$9
48 years$306$173$93$48$24$8
49 years$296$165$87$45$22$7
50 years$287$158$82$41$20$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $294,000, adding $3,086 every year, while hoping to spend $21,792 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: 65/17/18 Blend
39$294,000$294,000$294,000$294,000
40$327,171$311,589$307,032$346,779
41$337,356$303,671$294,131$352,389
42$347,850$294,634$280,068$355,737
43$358,660$284,400$264,780$358,872
44$369,796$272,889$248,202$361,775
45$381,266$260,011$230,268$364,423
46$393,079$245,676$210,906$366,793
47$405,245$229,785$190,043$368,861
48$417,771$212,236$167,601$370,600
49$430,668$192,920$143,500$371,983
50$443,944$171,721$117,655$372,980
51$457,609$148,518$89,979$373,560
52$471,672$123,182$60,380$373,688
53$486,141$95,577$28,762$373,331
54$501,027$65,559$0$372,450
55$516,338$32,978$0$371,963
56$532,084$0$0$376,826
57$548,272$0$0$381,923
58$564,912$0$0$393,502
59$582,012$0$0$405,400
60$599,580$0$0$417,621
61$617,623$0$0$430,172
62$636,148$0$0$443,056
63$655,162$0$0$456,279
64$674,671$0$0$469,842
65$694,678$0$0$483,751
66$715,190$0$0$498,007
67$736,207$0$0$512,612
68$757,732$0$0$527,566
69$779,765$0$0$542,870
70$802,305$0$0$558,522
71$825,349$0$0$574,519
72$848,892$0$0$590,857
73$872,925$0$0$607,530
74$897,440$0$0$624,531
75$922,423$0$0$641,849
76$947,857$0$0$659,473
77$973,723$0$0$677,387
78$999,996$0$0$695,574
79$1,026,649$0$0$714,013
80$1,053,647$0$0$732,678
81$1,080,950$0$0$751,541
82$1,108,513$0$0$770,567
83$1,136,282$0$0$789,720
84$1,164,197$0$0$808,953
85$1,192,188$0$0$828,216
86$1,220,175$0$0$847,452
87$1,248,068$0$0$866,595
88$1,275,764$0$0$885,571
89$1,303,147$0$0$904,296
90$1,330,087$0$0$922,674
91$1,356,436$0$0$940,602
92$1,382,030$0$0$957,957
93$1,406,682$0$0$974,608
94$1,430,185$0$0$990,403
95$1,452,305$0$0$1,005,176
96$1,472,784$0$0$1,018,739
97$1,491,330$0$0$1,030,883
98$1,507,620$0$0$1,041,375
99$1,521,293$0$0$1,049,955
100$1,531,948$0$0$1,056,335