Can I retire at age 40 with 394,000?

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 $394,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$32,536$32,246$31,964$31,688$31,418$30,898
2 years$16,107$15,807$15,516$15,234$14,961$14,438
3 years$10,631$10,330$10,040$9,761$9,492$8,983
4 years$7,894$7,594$7,307$7,032$6,770$6,279
5 years$6,252$5,954$5,670$5,401$5,146$4,674
6 years$5,158$4,862$4,582$4,320$4,072$3,620
7 years$4,377$4,083$3,808$3,551$3,312$2,879
8 years$3,791$3,500$3,229$2,979$2,747$2,335
9 years$3,335$3,047$2,782$2,538$2,314$1,921
10 years$2,971$2,686$2,425$2,187$1,971$1,598
11 years$2,674$2,391$2,135$1,904$1,695$1,341
12 years$2,426$2,146$1,895$1,670$1,469$1,133
13 years$2,216$1,939$1,693$1,474$1,281$963
14 years$2,037$1,763$1,521$1,309$1,123$822
15 years$1,881$1,610$1,373$1,167$989$705
16 years$1,746$1,478$1,245$1,045$874$606
17 years$1,626$1,361$1,133$939$775$523
18 years$1,520$1,257$1,034$846$689$452
19 years$1,424$1,165$947$765$614$391
20 years$1,339$1,083$869$692$549$339
21 years$1,262$1,009$799$628$491$295
22 years$1,192$942$737$571$440$257
23 years$1,128$881$680$520$395$223
24 years$1,069$825$629$475$355$195
25 years$1,016$774$583$433$319$170
26 years$966$728$540$396$288$148
27 years$921$685$502$363$259$130
28 years$878$645$466$332$234$113
29 years$839$609$434$305$211$99
30 years$802$575$404$280$191$87
31 years$768$544$377$257$173$76
32 years$736$514$352$236$156$66
33 years$706$487$328$217$141$58
34 years$677$462$307$200$128$51
35 years$651$438$287$184$116$45
36 years$626$416$268$169$105$39
37 years$602$395$251$156$95$34
38 years$580$375$235$144$86$30
39 years$559$357$220$133$78$26
40 years$539$339$207$122$71$23
41 years$520$323$194$113$64$20
42 years$502$308$182$104$58$18
43 years$484$293$170$96$53$16
44 years$468$279$160$89$48$14
45 years$453$266$150$82$44$12
46 years$438$254$141$76$40$10
47 years$424$243$133$70$36$9
48 years$410$232$125$65$33$8
49 years$397$221$117$60$30$7
50 years$385$211$110$55$27$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $394,000, adding $3,135 every year, while hoping to spend $20,306 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: 42/35/23 Blend
39$394,000$394,000$394,000$394,000
40$437,422$416,540$410,433$452,732
41$460,433$415,345$402,577$462,758
42$485,112$413,411$393,777$471,424
43$511,605$410,680$383,981$480,403
44$540,076$407,091$373,132$489,733
45$570,705$402,579$361,173$499,461
46$603,688$397,076$348,043$509,637
47$639,240$390,509$333,678$520,319
48$677,598$382,800$318,012$531,575
49$719,023$373,867$300,976$543,476
50$763,802$363,625$282,497$556,107
51$812,248$351,981$262,499$569,562
52$864,708$338,838$240,903$583,947
53$921,561$324,095$217,626$599,380
54$983,226$307,641$192,582$615,994
55$1,050,163$289,363$165,681$633,938
56$1,122,876$269,138$136,828$653,380
57$1,201,922$246,839$105,925$674,506
58$1,287,913$222,329$72,868$697,525
59$1,381,522$195,465$37,551$722,671
60$1,483,490$166,095$0$750,204
61$1,594,632$134,060$0$780,450
62$1,715,845$99,189$0$823,534
63$1,848,116$61,304$0$870,623
64$1,992,532$20,217$0$922,150
65$2,150,290$0$0$978,596
66$2,322,706$0$0$1,049,842
67$2,511,232$0$0$1,136,305
68$2,717,462$0$0$1,230,938
69$2,943,156$0$0$1,334,553
70$3,190,248$0$0$1,448,046
71$3,460,872$0$0$1,572,403
72$3,757,373$0$0$1,708,709
73$4,082,337$0$0$1,858,159
74$4,438,611$0$0$2,022,071
75$4,829,331$0$0$2,201,894
76$5,257,952$0$0$2,399,228
77$5,728,276$0$0$2,615,830
78$6,244,496$0$0$2,853,640
79$6,811,225$0$0$3,114,794
80$7,433,549$0$0$3,401,642
81$8,117,069$0$0$3,716,777
82$8,867,955$0$0$4,063,053
83$9,693,004$0$0$4,443,615
84$10,599,705$0$0$4,861,928
85$11,596,306$0$0$5,321,807
86$12,691,897$0$0$5,827,460
87$13,896,490$0$0$6,383,518
88$15,221,117$0$0$6,995,085
89$16,677,933$0$0$7,667,788
90$18,280,328$0$0$8,407,820
91$20,043,056$0$0$9,222,010
92$21,982,374$0$0$10,117,881
93$24,116,193$0$0$11,103,720
94$26,464,247$0$0$12,188,659
95$29,048,281$0$0$13,382,762
96$31,892,254$0$0$14,697,115
97$35,022,566$0$0$16,143,935
98$38,468,304$0$0$17,736,685
99$42,261,520$0$0$19,490,195
100$46,437,532$0$0$21,420,812