Can I retire at age 40 with 388,000?

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 $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%15.6%
1 years$32,041$31,755$31,477$31,205$30,940$30,229
2 years$15,862$15,566$15,280$15,002$14,733$14,021
3 years$10,469$10,173$9,887$9,612$9,347$8,656
4 years$7,774$7,478$7,195$6,925$6,667$6,001
5 years$6,157$5,863$5,584$5,319$5,068$4,430
6 years$5,079$4,787$4,513$4,254$4,010$3,401
7 years$4,310$4,021$3,750$3,497$3,261$2,681
8 years$3,733$3,446$3,180$2,934$2,705$2,154
9 years$3,285$3,001$2,739$2,499$2,278$1,755
10 years$2,926$2,645$2,388$2,154$1,941$1,446
11 years$2,633$2,355$2,102$1,875$1,670$1,201
12 years$2,389$2,113$1,866$1,644$1,447$1,004
13 years$2,183$1,910$1,667$1,452$1,262$845
14 years$2,006$1,736$1,498$1,289$1,106$713
15 years$1,853$1,586$1,352$1,149$974$605
16 years$1,719$1,455$1,226$1,029$861$514
17 years$1,601$1,340$1,116$925$763$438
18 years$1,496$1,238$1,018$833$679$375
19 years$1,403$1,148$932$753$605$321
20 years$1,319$1,066$856$682$540$275
21 years$1,243$993$787$619$483$236
22 years$1,174$927$725$563$433$203
23 years$1,111$867$670$512$389$174
24 years$1,053$813$619$467$350$150
25 years$1,000$763$574$427$315$129
26 years$952$717$532$390$283$111
27 years$907$674$494$357$255$96
28 years$865$636$459$327$231$83
29 years$826$600$427$300$208$71
30 years$790$566$398$275$188$62
31 years$756$535$371$253$170$53
32 years$724$506$346$233$154$46
33 years$695$480$323$214$139$40
34 years$667$455$302$197$126$34
35 years$641$431$282$181$114$30
36 years$616$409$264$167$103$26
37 years$593$389$247$154$94$22
38 years$571$369$232$142$85$19
39 years$550$351$217$131$77$17
40 years$530$334$203$120$70$14
41 years$512$318$191$111$63$12
42 years$494$303$179$103$58$11
43 years$477$289$168$95$52$9
44 years$461$275$158$87$47$8
45 years$446$262$148$81$43$7
46 years$431$250$139$75$39$6
47 years$417$239$131$69$35$5
48 years$404$228$123$64$32$4
49 years$391$218$115$59$29$4
50 years$379$208$108$54$27$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $388,000, adding $4,129 every year, while hoping to spend $29,557 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: 52/29/19 Blend
39$388,000$388,000$388,000$388,000
40$431,835$411,271$405,257$451,836
41$444,434$399,975$387,385$454,739
42$457,327$387,135$367,923$454,472
43$470,514$372,643$346,788$453,545
44$483,991$356,388$323,890$451,904
45$497,756$338,249$299,138$449,494
46$511,803$318,100$272,436$446,253
47$526,127$295,806$243,682$442,118
48$540,718$271,227$212,772$437,021
49$555,567$244,213$179,595$430,887
50$570,661$214,605$144,038$423,641
51$585,985$182,237$105,979$415,199
52$601,521$146,932$65,295$405,472
53$617,248$108,504$21,855$394,367
54$633,143$66,756$0$381,782
55$649,176$21,479$0$372,579
56$665,315$0$0$366,725
57$681,522$0$0$368,485
58$697,756$0$0$377,093
59$713,968$0$0$385,666
60$730,101$0$0$394,172
61$746,095$0$0$402,575
62$761,878$0$0$410,833
63$777,370$0$0$418,899
64$792,483$0$0$426,723
65$807,116$0$0$434,245
66$821,157$0$0$441,400
67$834,478$0$0$448,116
68$846,939$0$0$454,309
69$858,383$0$0$459,890
70$868,633$0$0$464,755
71$877,494$0$0$468,793
72$884,746$0$0$471,877
73$890,148$0$0$473,866
74$893,428$0$0$474,604
75$894,285$0$0$473,919
76$892,387$0$0$471,617
77$887,362$0$0$467,485
78$878,799$0$0$461,286
79$866,241$0$0$452,758
80$849,184$0$0$441,609
81$827,066$0$0$427,516
82$799,267$0$0$410,124
83$765,099$0$0$389,036
84$723,802$0$0$363,815
85$674,533$0$0$333,977
86$616,362$0$0$298,987
87$548,257$0$0$258,253
88$469,080$0$0$211,120
89$377,572$0$0$156,865
90$272,339$0$0$94,688
91$151,846$0$0$23,707
92$14,391$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