Can I retire at age 40 with 387,000?

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 $387,000?

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$31,958$31,673$31,396$31,125$30,860$30,274
2 years$15,821$15,526$15,241$14,964$14,695$14,107
3 years$10,442$10,147$9,862$9,587$9,323$8,751
4 years$7,754$7,459$7,177$6,907$6,649$6,098
5 years$6,141$5,848$5,569$5,305$5,055$4,526
6 years$5,066$4,775$4,501$4,243$4,000$3,494
7 years$4,299$4,010$3,740$3,488$3,253$2,770
8 years$3,723$3,437$3,172$2,926$2,699$2,238
9 years$3,276$2,993$2,732$2,492$2,273$1,835
10 years$2,919$2,638$2,382$2,149$1,936$1,520
11 years$2,626$2,349$2,097$1,870$1,665$1,271
12 years$2,383$2,108$1,861$1,640$1,443$1,070
13 years$2,177$1,905$1,663$1,448$1,258$906
14 years$2,001$1,732$1,494$1,285$1,103$770
15 years$1,848$1,582$1,349$1,146$971$657
16 years$1,715$1,451$1,223$1,026$858$563
17 years$1,597$1,337$1,113$922$761$483
18 years$1,493$1,235$1,016$831$677$416
19 years$1,399$1,145$930$751$603$359
20 years$1,315$1,064$853$680$539$310
21 years$1,239$991$785$617$482$268
22 years$1,171$925$724$561$432$232
23 years$1,108$865$668$511$388$201
24 years$1,050$810$618$466$349$175
25 years$998$761$572$426$314$152
26 years$949$715$531$389$283$132
27 years$904$673$493$356$255$114
28 years$863$634$458$326$230$100
29 years$824$598$426$299$208$87
30 years$788$565$397$275$188$75
31 years$754$534$370$252$170$66
32 years$723$505$345$232$153$57
33 years$693$478$323$213$139$50
34 years$665$453$301$196$126$43
35 years$639$430$282$181$114$38
36 years$615$408$264$166$103$33
37 years$591$388$247$153$94$29
38 years$570$368$231$141$85$25
39 years$549$350$216$130$77$22
40 years$529$333$203$120$70$19
41 years$510$317$190$111$63$17
42 years$493$302$178$102$57$14
43 years$476$288$167$94$52$13
44 years$460$274$157$87$47$11
45 years$445$262$148$81$43$10
46 years$430$250$139$74$39$8
47 years$416$238$130$69$35$7
48 years$403$227$122$64$32$6
49 years$390$217$115$59$29$6
50 years$378$207$108$54$27$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $387,000, adding $5,739 every year, while hoping to spend $23,324 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: 47/33/20 Blend
39$387,000$387,000$387,000$387,000
40$432,394$411,883$405,884$450,013
41$451,681$407,248$394,665$458,256
42$472,155$401,605$382,288$464,403
43$493,910$394,879$368,690$470,589
44$517,052$386,992$353,805$476,827
45$541,697$377,860$337,563$483,134
46$567,971$367,396$319,892$489,530
47$596,012$355,507$300,716$496,039
48$625,971$342,093$279,956$502,688
49$658,016$327,050$257,530$509,511
50$692,326$310,269$233,350$516,546
51$729,103$291,632$207,327$523,837
52$768,566$271,015$179,366$531,435
53$810,953$248,289$149,369$539,400
54$856,531$223,316$117,233$547,799
55$905,587$195,948$82,851$556,709
56$958,440$166,033$46,110$566,219
57$1,015,440$133,407$6,893$576,430
58$1,076,969$97,899$0$587,454
59$1,143,450$59,326$0$606,882
60$1,215,346$17,497$0$629,454
61$1,293,166$0$0$653,892
62$1,377,471$0$0$690,502
63$1,468,874$0$0$737,121
64$1,568,055$0$0$787,745
65$1,675,757$0$0$842,759
66$1,792,798$0$0$902,586
67$1,920,081$0$0$967,692
68$2,058,595$0$0$1,038,590
69$2,209,432$0$0$1,115,844
70$2,373,791$0$0$1,200,074
71$2,552,994$0$0$1,291,964
72$2,748,493$0$0$1,392,265
73$2,961,888$0$0$1,501,806
74$3,194,940$0$0$1,621,496
75$3,449,589$0$0$1,752,340
76$3,727,968$0$0$1,895,442
77$4,032,427$0$0$2,052,018
78$4,365,553$0$0$2,223,406
79$4,730,195$0$0$2,411,082
80$5,129,491$0$0$2,616,669
81$5,566,894$0$0$2,841,954
82$6,046,210$0$0$3,088,908
83$6,571,628$0$0$3,359,699
84$7,147,763$0$0$3,656,716
85$7,779,697$0$0$3,982,590
86$8,473,029$0$0$4,340,219
87$9,233,924$0$0$4,732,796
88$10,069,175$0$0$5,163,836
89$10,986,263$0$0$5,637,214
90$11,993,430$0$0$6,157,196
91$13,099,755$0$0$6,728,484
92$14,315,240$0$0$7,356,255
93$15,650,903$0$0$8,046,216
94$17,118,881$0$0$8,804,650
95$18,732,548$0$0$9,638,483
96$20,506,637$0$0$10,555,343
97$22,457,379$0$0$11,563,636
98$24,602,658$0$0$12,672,621
99$26,962,175$0$0$13,892,502
100$29,557,640$0$0$15,234,520