Can I retire at age 40 with 396,000?

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 $396,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.2%
1 years$32,701$32,410$32,126$31,848$31,578$30,777
2 years$16,189$15,887$15,595$15,312$15,037$14,235
3 years$10,685$10,383$10,091$9,810$9,540$8,763
4 years$7,934$7,632$7,344$7,068$6,804$6,057
5 years$6,284$5,984$5,699$5,429$5,172$4,458
6 years$5,184$4,886$4,606$4,341$4,093$3,411
7 years$4,399$4,103$3,827$3,569$3,328$2,680
8 years$3,810$3,517$3,246$2,994$2,761$2,145
9 years$3,352$3,063$2,796$2,550$2,325$1,742
10 years$2,986$2,699$2,437$2,198$1,981$1,429
11 years$2,687$2,403$2,146$1,913$1,704$1,183
12 years$2,438$2,157$1,904$1,678$1,477$985
13 years$2,228$1,949$1,701$1,482$1,288$825
14 years$2,047$1,772$1,529$1,315$1,129$694
15 years$1,891$1,619$1,380$1,173$994$586
16 years$1,754$1,485$1,251$1,050$878$496
17 years$1,634$1,368$1,139$944$779$421
18 years$1,527$1,264$1,039$850$693$358
19 years$1,432$1,171$952$768$617$305
20 years$1,346$1,088$873$696$551$260
21 years$1,268$1,014$803$632$493$223
22 years$1,198$946$740$574$442$190
23 years$1,134$885$684$523$397$163
24 years$1,075$829$632$477$357$140
25 years$1,021$778$586$436$321$120
26 years$971$731$543$398$289$103
27 years$925$688$504$365$261$88
28 years$883$649$469$334$235$76
29 years$843$612$436$306$212$65
30 years$806$578$406$281$192$56
31 years$772$546$379$258$174$48
32 years$739$517$353$237$157$41
33 years$709$490$330$218$142$35
34 years$681$464$308$201$129$30
35 years$654$440$288$185$117$26
36 years$629$418$270$170$106$23
37 years$605$397$252$157$96$19
38 years$583$377$236$145$87$17
39 years$562$358$221$133$79$14
40 years$541$341$208$123$71$12
41 years$522$325$195$113$65$11
42 years$504$309$183$105$59$9
43 years$487$295$171$97$53$8
44 years$471$281$161$89$48$7
45 years$455$268$151$82$44$6
46 years$440$255$142$76$40$5
47 years$426$244$133$70$36$4
48 years$412$233$125$65$33$4
49 years$399$222$118$60$30$3
50 years$387$212$111$56$27$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $396,000, adding $5,645 every year, while hoping to spend $30,037 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: 64/15/21 Blend
39$396,000$396,000$396,000$396,000
40$442,215$421,227$415,089$467,790
41$455,362$409,908$397,035$474,373
42$468,843$397,027$377,370$477,666
43$482,660$382,478$356,008$480,569
44$496,816$366,143$332,858$483,043
45$511,311$347,904$307,829$485,052
46$526,145$327,632$280,821$486,554
47$541,316$305,190$251,733$487,503
48$556,822$280,436$220,458$487,853
49$572,659$253,219$186,885$487,553
50$588,821$223,377$150,896$486,548
51$605,301$190,743$112,371$484,780
52$622,089$155,136$71,183$482,188
53$639,173$116,369$27,198$478,704
54$656,540$74,242$0$474,257
55$674,171$28,544$0$473,193
56$692,046$0$0$477,799
57$710,141$0$0$485,378
58$728,429$0$0$497,788
59$746,877$0$0$510,296
60$765,446$0$0$522,875
61$784,096$0$0$535,493
62$802,775$0$0$548,115
63$821,429$0$0$560,702
64$839,993$0$0$573,209
65$858,397$0$0$585,583
66$876,559$0$0$597,768
67$894,388$0$0$609,697
68$911,780$0$0$621,299
69$928,620$0$0$632,491
70$944,779$0$0$643,181
71$960,112$0$0$653,265
72$974,456$0$0$662,629
73$987,630$0$0$671,145
74$999,432$0$0$678,668
75$1,009,636$0$0$685,039
76$1,017,991$0$0$690,080
77$1,024,218$0$0$693,593
78$1,028,005$0$0$695,358
79$1,029,006$0$0$695,130
80$1,026,839$0$0$692,637
81$1,021,076$0$0$687,578
82$1,011,245$0$0$679,618
83$996,820$0$0$668,386
84$977,220$0$0$653,472
85$951,801$0$0$634,418
86$919,849$0$0$610,722
87$880,573$0$0$581,823
88$833,099$0$0$547,105
89$776,457$0$0$505,882
90$709,577$0$0$457,398
91$631,273$0$0$400,816
92$540,236$0$0$335,210
93$435,017$0$0$259,559
94$314,016$0$0$172,731
95$175,464$0$0$73,477
96$17,406$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0