Can I retire at age 40 with 398,000?

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 $398,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$32,866$32,574$32,288$32,009$31,737$31,237
2 years$16,271$15,968$15,674$15,389$15,113$14,610
3 years$10,739$10,435$10,142$9,860$9,588$9,099
4 years$7,974$7,671$7,381$7,104$6,838$6,366
5 years$6,316$6,014$5,728$5,456$5,198$4,744
6 years$5,210$4,911$4,629$4,363$4,113$3,678
7 years$4,421$4,124$3,847$3,587$3,345$2,929
8 years$3,829$3,535$3,262$3,009$2,775$2,378
9 years$3,369$3,078$2,810$2,563$2,337$1,959
10 years$3,002$2,713$2,450$2,210$1,991$1,631
11 years$2,701$2,415$2,157$1,923$1,713$1,370
12 years$2,451$2,168$1,914$1,687$1,484$1,160
13 years$2,239$1,959$1,710$1,489$1,294$987
14 years$2,058$1,781$1,536$1,322$1,134$844
15 years$1,901$1,627$1,387$1,179$999$724
16 years$1,763$1,493$1,258$1,056$883$624
17 years$1,642$1,375$1,144$948$783$539
18 years$1,535$1,270$1,045$855$696$466
19 years$1,439$1,177$956$772$620$404
20 years$1,353$1,094$878$699$554$351
21 years$1,275$1,019$807$635$496$306
22 years$1,204$951$744$577$444$266
23 years$1,139$890$687$526$399$232
24 years$1,080$833$635$479$359$203
25 years$1,026$782$589$438$323$177
26 years$976$735$546$400$291$155
27 years$930$692$507$366$262$136
28 years$887$652$471$336$236$119
29 years$847$615$438$308$214$104
30 years$810$581$408$283$193$91
31 years$776$549$381$260$174$80
32 years$743$520$355$238$158$70
33 years$713$492$332$219$143$61
34 years$684$466$310$202$129$54
35 years$657$442$290$186$117$47
36 years$632$420$271$171$106$41
37 years$608$399$254$158$96$36
38 years$586$379$238$145$87$32
39 years$564$360$223$134$79$28
40 years$544$343$209$124$72$25
41 years$525$326$196$114$65$22
42 years$507$311$184$105$59$19
43 years$489$296$172$97$54$17
44 years$473$282$162$90$49$15
45 years$457$269$152$83$44$13
46 years$442$257$143$76$40$11
47 years$428$245$134$71$36$10
48 years$414$234$126$65$33$9
49 years$401$223$118$60$30$8
50 years$389$213$111$56$27$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $398,000, adding $6,523 every year, while hoping to spend $30,064 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: 38/39/23 Blend
39$398,000$398,000$398,000$398,000
40$445,324$424,230$418,061$458,975
41$458,760$413,030$400,079$458,283
42$472,558$400,273$380,486$454,251
43$486,724$385,851$359,197$449,291
44$501,263$369,651$336,123$443,337
45$516,179$351,551$311,171$436,320
46$531,475$331,424$284,241$428,164
47$547,156$309,133$255,233$418,793
48$563,222$284,537$224,040$408,123
49$579,675$257,484$190,549$396,067
50$596,514$227,813$154,646$382,530
51$613,740$195,357$116,207$367,415
52$631,348$159,936$75,107$350,618
53$649,335$121,363$31,213$332,029
54$667,694$79,437$0$311,530
55$686,419$33,949$0$292,834
56$705,498$0$0$280,398
57$724,918$0$0$273,028
58$744,665$0$0$280,335
59$764,718$0$0$287,740
60$785,056$0$0$295,234
61$805,651$0$0$302,802
62$826,474$0$0$310,433
63$847,489$0$0$318,110
64$868,653$0$0$325,814
65$889,920$0$0$333,524
66$911,234$0$0$341,217
67$932,535$0$0$348,866
68$953,752$0$0$356,439
69$974,805$0$0$363,902
70$995,605$0$0$371,216
71$1,016,049$0$0$378,337
72$1,036,023$0$0$385,217
73$1,055,399$0$0$391,799
74$1,074,034$0$0$398,022
75$1,091,765$0$0$403,818
76$1,108,412$0$0$409,108
77$1,123,774$0$0$413,807
78$1,137,625$0$0$417,818
79$1,149,715$0$0$421,036
80$1,159,763$0$0$423,341
81$1,167,459$0$0$424,600
82$1,172,456$0$0$424,668
83$1,174,370$0$0$423,380
84$1,172,771$0$0$420,556
85$1,167,186$0$0$415,995
86$1,157,087$0$0$409,474
87$1,141,890$0$0$400,745
88$1,120,946$0$0$389,535
89$1,093,537$0$0$375,542
90$1,058,868$0$0$358,428
91$1,016,057$0$0$337,824
92$964,128$0$0$313,317
93$902,002$0$0$284,453
94$828,485$0$0$250,729
95$742,255$0$0$211,588
96$641,851$0$0$166,417
97$525,659$0$0$114,536
98$391,892$0$0$55,194
99$238,579$0$0$0
100$63,540$0$0$0