Can I retire at age 40 with 388,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $388,000?

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$32,041$31,755$31,477$31,205$30,940$30,082
2 years$15,862$15,566$15,280$15,002$14,733$13,875
3 years$10,469$10,173$9,887$9,612$9,347$8,516
4 years$7,774$7,478$7,195$6,925$6,667$5,869
5 years$6,157$5,863$5,584$5,319$5,068$4,306
6 years$5,079$4,787$4,513$4,254$4,010$3,284
7 years$4,310$4,021$3,750$3,497$3,261$2,571
8 years$3,733$3,446$3,180$2,934$2,705$2,051
9 years$3,285$3,001$2,739$2,499$2,278$1,659
10 years$2,926$2,645$2,388$2,154$1,941$1,357
11 years$2,633$2,355$2,102$1,875$1,670$1,118
12 years$2,389$2,113$1,866$1,644$1,447$928
13 years$2,183$1,910$1,667$1,452$1,262$774
14 years$2,006$1,736$1,498$1,289$1,106$648
15 years$1,853$1,586$1,352$1,149$974$545
16 years$1,719$1,455$1,226$1,029$861$460
17 years$1,601$1,340$1,116$925$763$388
18 years$1,496$1,238$1,018$833$679$329
19 years$1,403$1,148$932$753$605$279
20 years$1,319$1,066$856$682$540$237
21 years$1,243$993$787$619$483$202
22 years$1,174$927$725$563$433$172
23 years$1,111$867$670$512$389$146
24 years$1,053$813$619$467$350$125
25 years$1,000$763$574$427$315$106
26 years$952$717$532$390$283$91
27 years$907$674$494$357$255$77
28 years$865$636$459$327$231$66
29 years$826$600$427$300$208$57
30 years$790$566$398$275$188$48
31 years$756$535$371$253$170$41
32 years$724$506$346$233$154$35
33 years$695$480$323$214$139$30
34 years$667$455$302$197$126$26
35 years$641$431$282$181$114$22
36 years$616$409$264$167$103$19
37 years$593$389$247$154$94$16
38 years$571$369$232$142$85$14
39 years$550$351$217$131$77$12
40 years$530$334$203$120$70$10
41 years$512$318$191$111$63$9
42 years$494$303$179$103$58$7
43 years$477$289$168$95$52$6
44 years$461$275$158$87$47$5
45 years$446$262$148$81$43$5
46 years$431$250$139$75$39$4
47 years$417$239$131$69$35$3
48 years$404$228$123$64$32$3
49 years$391$218$115$59$29$3
50 years$379$208$108$54$27$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $388,000, adding $3,728 every year, while hoping to spend $29,757 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: 85/9/6 Blend
39$388,000$388,000$388,000$388,000
40$431,421$410,857$404,843$467,648
41$443,765$399,328$386,744$480,306
42$456,371$386,237$367,042$489,748
43$469,233$371,475$345,650$499,172
44$482,347$354,929$322,481$508,556
45$495,703$336,477$297,441$517,874
46$509,293$315,993$270,434$527,100
47$523,104$293,340$241,356$536,203
48$537,122$268,375$210,104$545,151
49$551,332$240,949$176,565$553,908
50$565,712$210,900$140,625$562,431
51$580,241$178,060$102,162$570,678
52$594,892$142,251$61,051$578,598
53$609,634$103,285$17,159$586,137
54$624,433$60,962$0$593,236
55$639,249$15,073$0$601,729
56$654,037$0$0$610,938
57$668,745$0$0$623,122
58$683,315$0$0$636,666
59$697,682$0$0$650,016
60$711,770$0$0$663,103
61$725,499$0$0$675,848
62$738,773$0$0$688,164
63$751,487$0$0$699,953
64$763,526$0$0$711,105
65$774,758$0$0$721,497
66$785,035$0$0$730,991
67$794,195$0$0$739,434
68$802,056$0$0$746,656
69$808,415$0$0$752,466
70$813,045$0$0$756,653
71$815,696$0$0$758,981
72$816,089$0$0$759,189
73$813,913$0$0$756,986
74$808,825$0$0$752,049
75$800,443$0$0$744,022
76$788,342$0$0$732,506
77$772,054$0$0$717,062
78$751,059$0$0$697,204
79$724,781$0$0$672,390
80$692,581$0$0$642,023
81$653,754$0$0$605,442
82$607,518$0$0$561,915
83$553,009$0$0$510,631
84$489,272$0$0$450,696
85$415,248$0$0$381,118
86$329,770$0$0$300,804
87$231,547$0$0$208,544
88$119,152$0$0$103,000
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