Can I retire at age 40 with 368,000?

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 $368,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.5%
1 years$30,389$30,118$29,854$29,597$29,345$28,337
2 years$15,044$14,764$14,492$14,229$13,974$12,969
3 years$9,930$9,648$9,378$9,117$8,866$7,895
4 years$7,373$7,093$6,824$6,568$6,323$5,394
5 years$5,840$5,561$5,296$5,045$4,807$3,922
6 years$4,817$4,541$4,280$4,034$3,803$2,964
7 years$4,088$3,813$3,557$3,317$3,093$2,298
8 years$3,541$3,269$3,016$2,783$2,566$1,815
9 years$3,115$2,846$2,598$2,370$2,161$1,453
10 years$2,775$2,509$2,265$2,043$1,841$1,175
11 years$2,497$2,233$1,994$1,778$1,584$958
12 years$2,266$2,004$1,770$1,560$1,372$786
13 years$2,070$1,811$1,581$1,377$1,197$648
14 years$1,902$1,647$1,421$1,222$1,049$537
15 years$1,757$1,504$1,283$1,090$924$446
16 years$1,630$1,380$1,163$976$816$371
17 years$1,519$1,271$1,058$877$724$310
18 years$1,419$1,174$966$790$644$259
19 years$1,330$1,088$884$714$574$217
20 years$1,251$1,011$812$647$512$182
21 years$1,179$942$746$587$458$153
22 years$1,113$879$688$534$411$128
23 years$1,054$823$635$486$369$108
24 years$999$771$588$443$332$91
25 years$949$723$544$405$298$76
26 years$903$680$505$370$269$64
27 years$860$640$469$339$242$54
28 years$820$603$436$310$219$46
29 years$783$569$405$285$197$38
30 years$749$537$378$261$178$32
31 years$717$508$352$240$161$27
32 years$687$480$328$221$146$23
33 years$659$455$307$203$132$19
34 years$633$431$287$187$120$16
35 years$608$409$268$172$108$14
36 years$584$388$251$158$98$12
37 years$562$369$235$146$89$10
38 years$542$350$220$134$81$8
39 years$522$333$206$124$73$7
40 years$503$317$193$114$66$6
41 years$485$302$181$105$60$5
42 years$469$287$170$97$55$4
43 years$452$274$159$90$50$4
44 years$437$261$149$83$45$3
45 years$423$249$140$77$41$3
46 years$409$237$132$71$37$2
47 years$396$227$124$65$34$2
48 years$383$216$116$60$31$2
49 years$371$207$109$56$28$1
50 years$359$197$103$52$25$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $368,000, adding $4,958 every year, while hoping to spend $23,057 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: 54/41/5 Blend
39$368,000$368,000$368,000$368,000
40$410,650$391,146$385,442$432,122
41$428,004$385,780$373,822$441,819
42$446,355$379,378$361,040$449,385
43$465,781$371,865$347,032$457,051
44$486,366$363,162$331,733$464,830
45$508,203$353,184$315,074$472,738
46$531,392$341,842$296,981$480,792
47$556,044$329,043$277,380$489,013
48$582,280$314,685$256,191$497,427
49$610,231$298,664$233,333$506,062
50$640,044$280,867$208,718$514,953
51$671,875$261,177$182,257$524,138
52$705,900$239,468$153,856$533,662
53$742,308$215,608$123,417$543,576
54$781,309$189,458$90,837$553,940
55$823,131$160,870$56,008$564,822
56$868,026$129,688$18,820$576,297
57$916,270$95,748$0$588,453
58$968,165$58,876$0$602,504
59$1,024,044$18,888$0$618,591
60$1,084,273$0$0$635,843
61$1,149,252$0$0$665,426
62$1,219,422$0$0$706,601
63$1,295,267$0$0$751,134
64$1,377,319$0$0$799,343
65$1,466,164$0$0$851,574
66$1,562,444$0$0$908,210
67$1,666,866$0$0$969,670
68$1,780,209$0$0$1,036,417
69$1,903,328$0$0$1,108,960
70$2,037,163$0$0$1,187,856
71$2,182,750$0$0$1,273,723
72$2,341,227$0$0$1,367,236
73$2,513,847$0$0$1,469,141
74$2,701,990$0$0$1,580,257
75$2,907,173$0$0$1,701,486
76$3,131,067$0$0$1,833,823
77$3,375,509$0$0$1,978,359
78$3,642,525$0$0$2,136,299
79$3,934,342$0$0$2,308,968
80$4,253,413$0$0$2,497,823
81$4,602,438$0$0$2,704,473
82$4,984,393$0$0$2,930,684
83$5,402,550$0$0$3,178,405
84$5,860,517$0$0$3,449,781
85$6,362,264$0$0$3,747,173
86$6,912,165$0$0$4,073,183
87$7,515,035$0$0$4,430,676
88$8,176,179$0$0$4,822,807
89$8,901,441$0$0$5,253,051
90$9,697,255$0$0$5,725,238
91$10,570,710$0$0$6,243,583
92$11,529,613$0$0$6,812,732
93$12,582,567$0$0$7,437,802
94$13,739,045$0$0$8,124,429
95$15,009,486$0$0$8,878,824
96$16,405,386$0$0$9,707,826
97$17,939,414$0$0$10,618,972
98$19,625,524$0$0$11,620,566
99$21,479,091$0$0$12,721,753
100$23,517,051$0$0$13,932,612