Can I retire at age 40 with 320,000?

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 $320,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$26,425$26,190$25,960$25,736$25,517$25,033
2 years$13,082$12,838$12,602$12,373$12,151$11,665
3 years$8,635$8,390$8,154$7,928$7,709$7,236
4 years$6,411$6,167$5,934$5,711$5,498$5,042
5 years$5,078$4,835$4,605$4,387$4,180$3,742
6 years$4,189$3,948$3,722$3,508$3,307$2,889
7 years$3,555$3,316$3,093$2,884$2,690$2,290
8 years$3,079$2,842$2,623$2,420$2,231$1,851
9 years$2,709$2,475$2,259$2,061$1,879$1,517
10 years$2,413$2,181$1,970$1,777$1,601$1,257
11 years$2,172$1,942$1,734$1,546$1,377$1,051
12 years$1,970$1,743$1,539$1,356$1,193$885
13 years$1,800$1,575$1,375$1,197$1,041$749
14 years$1,654$1,432$1,235$1,063$912$637
15 years$1,528$1,308$1,115$948$803$544
16 years$1,418$1,200$1,011$849$710$466
17 years$1,320$1,105$920$763$629$400
18 years$1,234$1,021$840$687$560$344
19 years$1,157$946$769$621$499$297
20 years$1,088$880$706$562$446$256
21 years$1,025$819$649$510$399$222
22 years$968$765$598$464$357$192
23 years$916$715$552$423$321$166
24 years$869$670$511$385$288$144
25 years$825$629$473$352$259$125
26 years$785$591$439$322$234$109
27 years$748$556$408$295$211$95
28 years$713$524$379$270$190$82
29 years$681$494$353$248$172$72
30 years$651$467$328$227$155$62
31 years$624$441$306$209$140$54
32 years$597$418$286$192$127$47
33 years$573$396$267$176$115$41
34 years$550$375$249$162$104$36
35 years$529$356$233$149$94$31
36 years$508$338$218$138$85$27
37 years$489$321$204$127$77$24
38 years$471$305$191$117$70$21
39 years$454$290$179$108$64$18
40 years$437$276$168$99$58$16
41 years$422$262$157$92$52$14
42 years$407$250$148$85$47$12
43 years$393$238$138$78$43$10
44 years$380$227$130$72$39$9
45 years$368$216$122$67$35$8
46 years$356$206$115$62$32$7
47 years$344$197$108$57$29$6
48 years$333$188$101$53$27$5
49 years$322$180$95$49$24$5
50 years$312$172$89$45$22$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $320,000, adding $2,920 every year, while hoping to spend $22,537 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: 58/37/5 Blend
39$320,000$320,000$320,000$320,000
40$355,652$338,692$333,732$375,783
41$367,949$331,309$320,933$382,247
42$380,746$322,808$306,950$386,464
43$394,068$313,112$291,719$390,490
44$407,946$302,137$275,174$394,309
45$422,410$289,796$257,246$397,903
46$437,494$275,994$237,862$401,253
47$453,235$260,634$216,947$404,341
48$469,671$243,612$194,421$407,148
49$486,846$224,817$170,203$409,653
50$504,804$204,134$144,205$411,836
51$523,596$181,438$116,337$413,677
52$543,274$156,600$86,506$415,154
53$563,898$129,482$54,613$416,246
54$585,528$99,940$20,556$416,932
55$608,235$67,820$0$417,190
56$632,092$32,960$0$417,842
57$657,179$0$0$419,250
58$683,585$0$0$422,260
59$711,404$0$0$439,579
60$740,741$0$0$457,854
61$771,708$0$0$477,156
62$804,430$0$0$497,563
63$839,040$0$0$519,162
64$875,686$0$0$542,046
65$914,529$0$0$566,316
66$955,743$0$0$592,085
67$999,522$0$0$619,475
68$1,046,074$0$0$648,618
69$1,095,629$0$0$679,662
70$1,148,439$0$0$712,767
71$1,204,778$0$0$748,107
72$1,264,949$0$0$785,875
73$1,329,282$0$0$826,281
74$1,398,140$0$0$869,556
75$1,471,918$0$0$915,954
76$1,551,054$0$0$965,752
77$1,636,025$0$0$1,019,255
78$1,727,356$0$0$1,076,798
79$1,825,623$0$0$1,138,748
80$1,931,460$0$0$1,205,508
81$2,045,559$0$0$1,277,522
82$2,168,685$0$0$1,355,277
83$2,301,676$0$0$1,439,308
84$2,445,453$0$0$1,530,202
85$2,601,029$0$0$1,628,605
86$2,769,518$0$0$1,735,229
87$2,952,142$0$0$1,850,855
88$3,150,248$0$0$1,976,342
89$3,365,317$0$0$2,112,634
90$3,598,975$0$0$2,260,771
91$3,853,013$0$0$2,421,897
92$4,129,403$0$0$2,597,269
93$4,430,311$0$0$2,788,271
94$4,758,122$0$0$2,996,428
95$5,115,461$0$0$3,223,414
96$5,505,217$0$0$3,471,076
97$5,930,570$0$0$3,741,444
98$6,395,019$0$0$4,036,753
99$6,902,417$0$0$4,359,465
100$7,457,005$0$0$4,712,289