Can I retire at age 40 with 305,000?

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 $305,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.1%
1 years$25,187$24,962$24,743$24,530$24,321$23,430
2 years$12,469$12,236$12,011$11,793$11,581$10,694
3 years$8,230$7,997$7,772$7,556$7,348$6,491
4 years$6,111$5,878$5,656$5,444$5,240$4,422
5 years$4,840$4,609$4,389$4,181$3,984$3,205
6 years$3,993$3,763$3,547$3,344$3,152$2,414
7 years$3,388$3,160$2,948$2,749$2,564$1,865
8 years$2,934$2,709$2,500$2,306$2,127$1,468
9 years$2,582$2,359$2,153$1,964$1,791$1,171
10 years$2,300$2,079$1,877$1,693$1,526$944
11 years$2,070$1,851$1,653$1,474$1,312$766
12 years$1,878$1,661$1,467$1,293$1,137$626
13 years$1,716$1,501$1,310$1,141$992$514
14 years$1,577$1,365$1,177$1,013$869$424
15 years$1,456$1,247$1,063$903$765$351
16 years$1,351$1,144$964$809$677$291
17 years$1,259$1,053$877$727$600$242
18 years$1,176$973$801$655$533$201
19 years$1,103$902$733$592$475$168
20 years$1,037$838$673$536$425$140
21 years$977$781$619$486$380$117
22 years$923$729$570$442$341$98
23 years$873$682$527$403$306$82
24 years$828$639$487$367$275$68
25 years$786$599$451$336$247$57
26 years$748$563$418$307$223$48
27 years$713$530$388$281$201$40
28 years$680$500$361$257$181$34
29 years$649$471$336$236$164$28
30 years$621$445$313$217$148$24
31 years$594$421$292$199$134$20
32 years$569$398$272$183$121$17
33 years$546$377$254$168$109$14
34 years$524$357$237$155$99$12
35 years$504$339$222$142$90$10
36 years$484$322$208$131$81$8
37 years$466$306$194$121$74$7
38 years$449$290$182$111$67$6
39 years$432$276$171$103$61$5
40 years$417$263$160$95$55$4
41 years$402$250$150$87$50$3
42 years$388$238$141$81$45$3
43 years$375$227$132$74$41$2
44 years$362$216$124$69$37$2
45 years$350$206$116$63$34$2
46 years$339$197$109$59$31$1
47 years$328$188$103$54$28$1
48 years$317$179$96$50$25$1
49 years$307$171$91$46$23$1
50 years$298$164$85$43$21$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $305,000, adding $6,968 every year, while hoping to spend $21,101 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: 75/11/14 Blend
39$305,000$305,000$305,000$305,000
40$343,297$327,132$322,405$367,510
41$355,863$320,711$310,754$378,034
42$369,002$313,267$298,006$386,252
43$382,752$304,729$284,101$394,682
44$397,152$295,020$268,978$403,341
45$412,245$284,060$252,572$412,244
46$428,077$271,761$234,816$421,410
47$444,698$258,034$215,639$430,860
48$462,162$242,783$194,968$440,617
49$480,529$225,906$172,726$450,707
50$499,863$207,295$148,832$461,161
51$520,234$186,838$123,203$472,009
52$541,718$164,413$95,751$483,290
53$564,399$139,896$66,385$495,044
54$588,368$113,150$35,008$507,317
55$613,723$84,036$1,523$520,160
56$640,572$52,404$0$533,630
57$669,034$18,095$0$552,902
58$699,238$0$0$573,511
59$731,324$0$0$597,632
60$765,447$0$0$625,620
61$801,775$0$0$655,424
62$840,494$0$0$687,197
63$881,806$0$0$721,106
64$925,932$0$0$757,334
65$973,116$0$0$796,081
66$1,023,624$0$0$837,567
67$1,077,749$0$0$882,035
68$1,135,810$0$0$929,747
69$1,198,159$0$0$980,996
70$1,265,183$0$0$1,036,098
71$1,337,304$0$0$1,095,405
72$1,414,989$0$0$1,159,301
73$1,498,748$0$0$1,228,206
74$1,589,142$0$0$1,302,586
75$1,686,789$0$0$1,382,950
76$1,792,366$0$0$1,469,857
77$1,906,617$0$0$1,563,922
78$2,030,362$0$0$1,665,823
79$2,164,501$0$0$1,776,302
80$2,310,024$0$0$1,896,178
81$2,468,020$0$0$2,026,350
82$2,639,686$0$0$2,167,808
83$2,826,340$0$0$2,321,640
84$3,029,431$0$0$2,489,043
85$3,250,553$0$0$2,671,335
86$3,491,462$0$0$2,869,966
87$3,754,088$0$0$3,086,531
88$4,040,556$0$0$3,322,786
89$4,353,206$0$0$3,580,664
90$4,694,613$0$0$3,862,293
91$5,067,610$0$0$4,170,014
92$5,475,319$0$0$4,506,407
93$5,921,175$0$0$4,874,310
94$6,408,960$0$0$5,276,849
95$6,942,840$0$0$5,717,466
96$7,527,401$0$0$6,199,951
97$8,167,694$0$0$6,728,477
98$8,869,280$0$0$7,307,641
99$9,638,285$0$0$7,942,505
100$10,481,455$0$0$8,638,644