Can I retire at age 40 with 396,000?

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 $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%11%
1 years$32,701$32,410$32,126$31,848$31,578$31,445
2 years$16,189$15,887$15,595$15,312$15,037$14,903
3 years$10,685$10,383$10,091$9,810$9,540$9,409
4 years$7,934$7,632$7,344$7,068$6,804$6,677
5 years$6,284$5,984$5,699$5,429$5,172$5,049
6 years$5,184$4,886$4,606$4,341$4,093$3,974
7 years$4,399$4,103$3,827$3,569$3,328$3,214
8 years$3,810$3,517$3,246$2,994$2,761$2,651
9 years$3,352$3,063$2,796$2,550$2,325$2,220
10 years$2,986$2,699$2,437$2,198$1,981$1,880
11 years$2,687$2,403$2,146$1,913$1,704$1,607
12 years$2,438$2,157$1,904$1,678$1,477$1,384
13 years$2,228$1,949$1,701$1,482$1,288$1,200
14 years$2,047$1,772$1,529$1,315$1,129$1,045
15 years$1,891$1,619$1,380$1,173$994$914
16 years$1,754$1,485$1,251$1,050$878$802
17 years$1,634$1,368$1,139$944$779$707
18 years$1,527$1,264$1,039$850$693$624
19 years$1,432$1,171$952$768$617$552
20 years$1,346$1,088$873$696$551$490
21 years$1,268$1,014$803$632$493$435
22 years$1,198$946$740$574$442$387
23 years$1,134$885$684$523$397$345
24 years$1,075$829$632$477$357$308
25 years$1,021$778$586$436$321$275
26 years$971$731$543$398$289$246
27 years$925$688$504$365$261$220
28 years$883$649$469$334$235$197
29 years$843$612$436$306$212$176
30 years$806$578$406$281$192$158
31 years$772$546$379$258$174$142
32 years$739$517$353$237$157$127
33 years$709$490$330$218$142$114
34 years$681$464$308$201$129$102
35 years$654$440$288$185$117$92
36 years$629$418$270$170$106$83
37 years$605$397$252$157$96$74
38 years$583$377$236$145$87$67
39 years$562$358$221$133$79$60
40 years$541$341$208$123$71$54
41 years$522$325$195$113$65$49
42 years$504$309$183$105$59$44
43 years$487$295$171$97$53$39
44 years$471$281$161$89$48$35
45 years$455$268$151$82$44$32
46 years$440$255$142$76$40$29
47 years$426$244$133$70$36$26
48 years$412$233$125$65$33$23
49 years$399$222$118$60$30$21
50 years$387$212$111$56$27$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $396,000, adding $5,523 every year, while hoping to spend $28,795 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: 59/12/29 Blend
39$396,000$396,000$396,000$396,000
40$442,089$421,101$414,963$464,385
41$456,544$411,097$398,227$470,261
42$471,509$399,638$379,964$473,148
43$487,005$386,622$360,095$475,705
44$503,054$371,942$338,533$477,907
45$519,682$355,483$315,190$479,730
46$536,912$337,124$289,972$481,147
47$554,774$316,740$262,782$482,130
48$573,294$294,194$233,519$482,651
49$592,505$269,344$202,076$482,681
50$612,438$242,040$168,344$482,187
51$633,129$212,121$132,205$481,139
52$654,614$179,421$93,540$479,503
53$676,933$143,762$52,222$477,245
54$700,129$104,954$8,120$474,329
55$724,246$62,801$0$470,719
56$749,333$17,092$0$478,428
57$775,442$0$0$488,830
58$802,629$0$0$503,695
59$830,955$0$0$521,540
60$860,483$0$0$540,148
61$891,283$0$0$559,565
62$923,430$0$0$579,839
63$957,005$0$0$601,021
64$992,095$0$0$623,168
65$1,028,795$0$0$646,341
66$1,067,207$0$0$670,605
67$1,107,441$0$0$696,031
68$1,149,618$0$0$722,698
69$1,193,867$0$0$750,687
70$1,240,330$0$0$780,092
71$1,289,159$0$0$811,010
72$1,340,522$0$0$843,549
73$1,394,600$0$0$877,827
74$1,451,590$0$0$913,970
75$1,511,708$0$0$952,117
76$1,575,187$0$0$992,421
77$1,642,284$0$0$1,035,047
78$1,713,277$0$0$1,080,174
79$1,788,471$0$0$1,128,000
80$1,868,198$0$0$1,178,740
81$1,952,823$0$0$1,232,630
82$2,042,743$0$0$1,289,926
83$2,138,392$0$0$1,350,912
84$2,240,248$0$0$1,415,894
85$2,348,830$0$0$1,485,211
86$2,464,711$0$0$1,559,233
87$2,588,514$0$0$1,638,364
88$2,720,926$0$0$1,723,050
89$2,862,699$0$0$1,813,777
90$3,014,655$0$0$1,911,080
91$3,177,700$0$0$2,015,546
92$3,352,826$0$0$2,127,817
93$3,541,120$0$0$2,248,600
94$3,743,780$0$0$2,378,672
95$3,962,116$0$0$2,518,883
96$4,197,572$0$0$2,670,170
97$4,451,731$0$0$2,833,560
98$4,726,334$0$0$3,010,184
99$5,023,292$0$0$3,201,283
100$5,344,709$0$0$3,408,222