Can I retire at age 40 with 400,000?

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 $400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15%
1 years$33,032$32,737$32,450$32,170$31,897$31,240
2 years$16,352$16,048$15,753$15,466$15,189$14,530
3 years$10,793$10,487$10,193$9,909$9,636$8,996
4 years$8,014$7,709$7,418$7,139$6,873$6,256
5 years$6,347$6,044$5,757$5,484$5,225$4,633
6 years$5,236$4,936$4,652$4,385$4,134$3,569
7 years$4,443$4,145$3,866$3,605$3,362$2,823
8 years$3,849$3,553$3,279$3,024$2,789$2,276
9 years$3,386$3,093$2,824$2,576$2,349$1,861
10 years$3,017$2,727$2,462$2,221$2,001$1,539
11 years$2,714$2,427$2,167$1,933$1,721$1,283
12 years$2,463$2,179$1,924$1,695$1,492$1,077
13 years$2,250$1,969$1,719$1,497$1,301$909
14 years$2,068$1,790$1,544$1,329$1,140$771
15 years$1,910$1,635$1,394$1,185$1,004$657
16 years$1,772$1,500$1,264$1,061$887$561
17 years$1,651$1,381$1,150$953$787$480
18 years$1,543$1,277$1,050$859$699$412
19 years$1,446$1,183$961$776$623$354
20 years$1,359$1,099$882$703$557$305
21 years$1,281$1,024$811$638$498$263
22 years$1,210$956$748$580$447$227
23 years$1,145$894$690$528$401$196
24 years$1,086$838$639$482$360$170
25 years$1,031$786$591$440$324$147
26 years$981$739$549$402$292$127
27 years$935$695$509$368$263$110
28 years$892$655$474$337$238$96
29 years$852$618$441$309$215$83
30 years$814$584$410$284$194$72
31 years$779$552$383$261$175$62
32 years$747$522$357$240$159$54
33 years$716$494$333$220$144$47
34 years$688$469$311$203$130$41
35 years$661$444$291$187$118$35
36 years$635$422$272$172$107$31
37 years$611$401$255$158$97$27
38 years$589$381$239$146$88$23
39 years$567$362$224$135$79$20
40 years$547$345$210$124$72$18
41 years$528$328$197$115$65$15
42 years$509$312$184$106$59$13
43 years$492$298$173$98$54$12
44 years$475$284$162$90$49$10
45 years$459$270$153$83$44$9
46 years$444$258$143$77$40$8
47 years$430$246$135$71$37$7
48 years$416$235$126$66$33$6
49 years$403$224$119$61$30$5
50 years$391$214$112$56$27$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $400,000, adding $4,383 every year, while hoping to spend $24,157 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: 40/43/17 Blend
39$400,000$400,000$400,000$400,000
40$445,321$424,121$417,921$460,727
41$465,041$419,200$406,219$467,186
42$485,963$413,228$393,314$471,502
43$508,183$406,129$379,143$475,661
44$531,809$397,820$363,635$479,661
45$556,956$388,216$346,719$483,501
46$583,751$377,224$328,320$487,184
47$612,334$364,748$308,359$490,713
48$642,857$350,686$286,754$494,094
49$675,487$334,929$263,419$497,338
50$710,408$317,362$238,265$500,458
51$747,821$297,864$211,198$503,472
52$787,946$276,306$182,121$506,400
53$831,025$252,553$150,930$509,272
54$877,323$226,462$117,520$512,121
55$927,132$197,881$81,779$514,987
56$980,771$166,649$43,590$517,918
57$1,038,593$132,597$2,833$520,973
58$1,100,982$95,548$0$524,217
59$1,168,364$55,311$0$535,107
60$1,241,203$11,687$0$547,384
61$1,320,013$0$0$560,666
62$1,405,355$0$0$591,913
63$1,497,850$0$0$631,816
64$1,598,177$0$0$675,145
65$1,707,086$0$0$722,227
66$1,825,398$0$0$773,427
67$1,954,021$0$0$829,140
68$2,093,950$0$0$889,807
69$2,246,281$0$0$955,908
70$2,412,220$0$0$1,027,975
71$2,593,095$0$0$1,106,592
72$2,790,366$0$0$1,192,401
73$3,005,641$0$0$1,286,111
74$3,240,690$0$0$1,388,499
75$3,497,461$0$0$1,500,423
76$3,778,099$0$0$1,622,829
77$4,084,964$0$0$1,756,754
78$4,420,657$0$0$1,903,345
79$4,788,040$0$0$2,063,861
80$5,190,264$0$0$2,239,691
81$5,630,802$0$0$2,432,362
82$6,113,476$0$0$2,643,559
83$6,642,494$0$0$2,875,136
84$7,222,494$0$0$3,129,134
85$7,858,581$0$0$3,407,803
86$8,556,381$0$0$3,713,621
87$9,322,087$0$0$4,049,316
88$10,162,523$0$0$4,417,895
89$11,085,205$0$0$4,822,668
90$12,098,413$0$0$5,267,284
91$13,211,268$0$0$5,755,761
92$14,433,816$0$0$6,292,526
93$15,777,128$0$0$6,882,456
94$17,253,395$0$0$7,530,923
95$18,876,052$0$0$8,243,847
96$20,659,899$0$0$9,027,750
97$22,621,240$0$0$9,889,817
98$24,778,040$0$0$10,837,963
99$27,150,091$0$0$11,880,911
100$29,759,199$0$0$13,028,270