Can I retire at age 40 with 398,000?

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 $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%13.5%
1 years$32,866$32,574$32,288$32,009$31,737$31,276
2 years$16,271$15,968$15,674$15,389$15,113$14,649
3 years$10,739$10,435$10,142$9,860$9,588$9,136
4 years$7,974$7,671$7,381$7,104$6,838$6,402
5 years$6,316$6,014$5,728$5,456$5,198$4,779
6 years$5,210$4,911$4,629$4,363$4,113$3,711
7 years$4,421$4,124$3,847$3,587$3,345$2,960
8 years$3,829$3,535$3,262$3,009$2,775$2,407
9 years$3,369$3,078$2,810$2,563$2,337$1,986
10 years$3,002$2,713$2,450$2,210$1,991$1,657
11 years$2,701$2,415$2,157$1,923$1,713$1,395
12 years$2,451$2,168$1,914$1,687$1,484$1,183
13 years$2,239$1,959$1,710$1,489$1,294$1,008
14 years$2,058$1,781$1,536$1,322$1,134$864
15 years$1,901$1,627$1,387$1,179$999$743
16 years$1,763$1,493$1,258$1,056$883$641
17 years$1,642$1,375$1,144$948$783$555
18 years$1,535$1,270$1,045$855$696$481
19 years$1,439$1,177$956$772$620$418
20 years$1,353$1,094$878$699$554$364
21 years$1,275$1,019$807$635$496$318
22 years$1,204$951$744$577$444$278
23 years$1,139$890$687$526$399$243
24 years$1,080$833$635$479$359$212
25 years$1,026$782$589$438$323$186
26 years$976$735$546$400$291$163
27 years$930$692$507$366$262$143
28 years$887$652$471$336$236$125
29 years$847$615$438$308$214$110
30 years$810$581$408$283$193$97
31 years$776$549$381$260$174$85
32 years$743$520$355$238$158$75
33 years$713$492$332$219$143$66
34 years$684$466$310$202$129$58
35 years$657$442$290$186$117$51
36 years$632$420$271$171$106$45
37 years$608$399$254$158$96$39
38 years$586$379$238$145$87$35
39 years$564$360$223$134$79$30
40 years$544$343$209$124$72$27
41 years$525$326$196$114$65$24
42 years$507$311$184$105$59$21
43 years$489$296$172$97$54$18
44 years$473$282$162$90$49$16
45 years$457$269$152$83$44$14
46 years$442$257$143$76$40$13
47 years$428$245$134$71$36$11
48 years$414$234$126$65$33$10
49 years$401$223$118$60$30$9
50 years$389$213$111$56$27$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $398,000, adding $3,566 every year, while hoping to spend $26,959 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: 50/38/12 Blend
39$398,000$398,000$398,000$398,000
40$442,274$421,180$415,011$462,783
41$458,702$413,134$400,230$469,177
42$475,902$403,790$384,050$472,989
43$493,924$393,056$366,396$476,520
44$512,823$380,834$347,189$479,751
45$532,659$367,023$326,347$482,662
46$553,494$351,511$303,784$485,237
47$575,400$334,184$279,410$487,455
48$598,452$314,920$253,131$489,298
49$622,732$293,590$224,849$490,749
50$648,331$270,056$194,462$491,790
51$675,346$244,174$161,862$492,403
52$703,885$215,792$126,939$492,574
53$734,065$184,749$89,574$492,288
54$766,011$150,874$49,646$491,532
55$799,864$113,986$7,029$490,295
56$835,775$73,896$0$488,568
57$873,910$30,403$0$491,270
58$914,450$0$0$494,755
59$957,595$0$0$505,127
60$1,003,562$0$0$529,746
61$1,052,588$0$0$556,028
62$1,104,936$0$0$584,117
63$1,160,889$0$0$614,169
64$1,220,762$0$0$646,357
65$1,284,898$0$0$680,868
66$1,353,675$0$0$717,909
67$1,427,504$0$0$757,708
68$1,506,840$0$0$800,514
69$1,592,181$0$0$846,600
70$1,684,074$0$0$896,266
71$1,783,118$0$0$949,842
72$1,889,975$0$0$1,007,691
73$2,005,367$0$0$1,070,211
74$2,130,091$0$0$1,137,840
75$2,265,023$0$0$1,211,059
76$2,411,125$0$0$1,290,396
77$2,569,454$0$0$1,376,434
78$2,741,172$0$0$1,469,812
79$2,927,559$0$0$1,571,233
80$3,130,022$0$0$1,681,472
81$3,350,107$0$0$1,801,379
82$3,589,517$0$0$1,931,891
83$3,850,124$0$0$2,074,038
84$4,133,989$0$0$2,228,955
85$4,443,379$0$0$2,397,890
86$4,780,791$0$0$2,582,216
87$5,148,970$0$0$2,783,445
88$5,550,941$0$0$3,003,241
89$5,990,031$0$0$3,243,437
90$6,469,905$0$0$3,506,049
91$6,994,596$0$0$3,793,300
92$7,568,545$0$0$4,107,633
93$8,196,642$0$0$4,451,742
94$8,884,273$0$0$4,828,591
95$9,637,367$0$0$5,241,447
96$10,462,454$0$0$5,693,904
97$11,366,725$0$0$6,189,924
98$12,358,100$0$0$6,733,868
99$13,445,303$0$0$7,330,540
100$14,637,941$0$0$7,985,232