Can I retire at age 40 with 384,000?

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 $384,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.8%
1 years$31,710$31,428$31,152$30,883$30,621$29,772
2 years$15,698$15,406$15,122$14,848$14,581$13,732
3 years$10,362$10,068$9,785$9,513$9,251$8,429
4 years$7,694$7,401$7,121$6,854$6,598$5,808
5 years$6,093$5,802$5,526$5,264$5,016$4,261
6 years$5,027$4,738$4,466$4,210$3,969$3,250
7 years$4,265$3,979$3,711$3,461$3,228$2,545
8 years$3,695$3,411$3,148$2,903$2,678$2,030
9 years$3,251$2,970$2,711$2,473$2,255$1,642
10 years$2,896$2,618$2,363$2,132$1,921$1,343
11 years$2,606$2,330$2,081$1,855$1,652$1,107
12 years$2,364$2,092$1,847$1,627$1,432$918
13 years$2,160$1,890$1,650$1,437$1,249$766
14 years$1,985$1,718$1,482$1,275$1,095$642
15 years$1,834$1,570$1,338$1,137$964$539
16 years$1,701$1,440$1,213$1,018$852$455
17 years$1,585$1,326$1,104$915$755$384
18 years$1,481$1,225$1,008$825$672$325
19 years$1,388$1,136$923$745$599$276
20 years$1,305$1,055$847$675$535$235
21 years$1,230$983$779$612$478$199
22 years$1,162$918$718$557$429$170
23 years$1,099$858$663$507$385$145
24 years$1,042$804$613$463$346$123
25 years$990$755$568$422$311$105
26 years$942$709$527$386$280$90
27 years$897$667$489$354$253$77
28 years$856$629$455$324$228$66
29 years$817$593$423$297$206$56
30 years$782$560$394$273$186$48
31 years$748$530$367$250$168$41
32 years$717$501$343$230$152$35
33 years$688$475$320$212$138$30
34 years$660$450$299$195$125$26
35 years$634$427$280$179$113$22
36 years$610$405$262$165$102$19
37 years$587$385$245$152$93$16
38 years$565$366$229$140$84$14
39 years$545$348$215$129$76$12
40 years$525$331$201$119$69$10
41 years$506$315$189$110$63$9
42 years$489$300$177$102$57$7
43 years$472$286$166$94$52$6
44 years$456$272$156$87$47$5
45 years$441$260$146$80$43$5
46 years$427$248$138$74$39$4
47 years$413$236$129$68$35$3
48 years$400$226$121$63$32$3
49 years$387$216$114$58$29$2
50 years$375$206$107$54$26$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $384,000, adding $5,017 every year, while hoping to spend $31,663 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: 50/33/17 Blend
39$384,000$384,000$384,000$384,000
40$428,343$407,991$402,039$447,510
41$438,345$394,293$381,818$447,559
42$448,306$378,863$359,859$443,925
43$458,188$361,583$336,069$439,288
44$467,949$342,326$310,353$433,564
45$477,541$320,961$282,611$426,664
46$486,910$297,348$252,738$418,492
47$495,995$271,339$220,626$408,942
48$504,729$242,777$186,159$397,905
49$513,035$211,496$149,219$385,259
50$520,828$177,324$109,682$370,876
51$528,014$140,073$67,417$354,617
52$534,485$99,551$22,289$336,331
53$540,123$55,550$0$315,859
54$544,797$7,853$0$297,717
55$548,360$0$0$281,647
56$550,648$0$0$279,320
57$551,479$0$0$279,020
58$550,652$0$0$277,781
59$547,943$0$0$275,481
60$543,102$0$0$271,981
61$535,855$0$0$267,129
62$525,896$0$0$260,756
63$512,885$0$0$252,673
64$496,448$0$0$242,673
65$476,169$0$0$230,527
66$451,587$0$0$215,979
67$422,193$0$0$198,749
68$387,424$0$0$178,524
69$346,658$0$0$154,961
70$299,204$0$0$127,678
71$244,301$0$0$96,256
72$181,107$0$0$60,228
73$108,692$0$0$19,081
74$26,028$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0