Can I retire at age 40 with 400,000?

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 $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%11.8%
1 years$33,032$32,737$32,450$32,170$31,897$31,656
2 years$16,352$16,048$15,753$15,466$15,189$14,946
3 years$10,793$10,487$10,193$9,909$9,636$9,399
4 years$8,014$7,709$7,418$7,139$6,873$6,643
5 years$6,347$6,044$5,757$5,484$5,225$5,003
6 years$5,236$4,936$4,652$4,385$4,134$3,921
7 years$4,443$4,145$3,866$3,605$3,362$3,157
8 years$3,849$3,553$3,279$3,024$2,789$2,593
9 years$3,386$3,093$2,824$2,576$2,349$2,161
10 years$3,017$2,727$2,462$2,221$2,001$1,821
11 years$2,714$2,427$2,167$1,933$1,721$1,549
12 years$2,463$2,179$1,924$1,695$1,492$1,328
13 years$2,250$1,969$1,719$1,497$1,301$1,145
14 years$2,068$1,790$1,544$1,329$1,140$992
15 years$1,910$1,635$1,394$1,185$1,004$863
16 years$1,772$1,500$1,264$1,061$887$753
17 years$1,651$1,381$1,150$953$787$660
18 years$1,543$1,277$1,050$859$699$579
19 years$1,446$1,183$961$776$623$510
20 years$1,359$1,099$882$703$557$450
21 years$1,281$1,024$811$638$498$397
22 years$1,210$956$748$580$447$351
23 years$1,145$894$690$528$401$311
24 years$1,086$838$639$482$360$276
25 years$1,031$786$591$440$324$245
26 years$981$739$549$402$292$217
27 years$935$695$509$368$263$193
28 years$892$655$474$337$238$172
29 years$852$618$441$309$215$153
30 years$814$584$410$284$194$136
31 years$779$552$383$261$175$121
32 years$747$522$357$240$159$108
33 years$716$494$333$220$144$97
34 years$688$469$311$203$130$86
35 years$661$444$291$187$118$77
36 years$635$422$272$172$107$69
37 years$611$401$255$158$97$61
38 years$589$381$239$146$88$55
39 years$567$362$224$135$79$49
40 years$547$345$210$124$72$44
41 years$528$328$197$115$65$39
42 years$509$312$184$106$59$35
43 years$492$298$173$98$54$31
44 years$475$284$162$90$49$28
45 years$459$270$153$83$44$25
46 years$444$258$143$77$40$22
47 years$430$246$135$71$37$20
48 years$416$235$126$66$33$18
49 years$403$224$119$61$30$16
50 years$391$214$112$56$27$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $400,000, adding $6,437 every year, while hoping to spend $24,363 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: 63/25/12 Blend
39$400,000$400,000$400,000$400,000
40$447,440$426,240$420,040$473,980
41$467,157$421,203$408,189$487,500
42$488,068$415,104$395,125$498,864
43$510,270$407,863$380,781$510,668
44$533,868$399,399$365,087$522,955
45$558,977$389,623$347,972$535,773
46$585,722$378,445$329,359$549,175
47$614,242$365,765$309,168$563,223
48$644,687$351,480$287,318$577,983
49$677,224$335,481$263,722$593,531
50$712,032$317,651$238,288$609,952
51$749,312$297,868$210,923$627,338
52$789,280$276,003$181,528$645,797
53$832,177$251,917$149,999$665,444
54$878,265$225,467$116,230$686,412
55$927,832$196,498$80,107$708,845
56$981,193$164,849$41,514$732,908
57$1,038,698$130,350$327$758,780
58$1,100,727$92,819$0$786,664
59$1,167,699$52,065$0$822,371
60$1,240,076$7,887$0$860,971
61$1,318,363$0$0$902,719
62$1,403,117$0$0$958,927
63$1,494,949$0$0$1,022,204
64$1,594,533$0$0$1,090,847
65$1,702,609$0$0$1,165,370
66$1,819,989$0$0$1,246,337
67$1,947,569$0$0$1,334,368
68$2,086,333$0$0$1,430,147
69$2,237,365$0$0$1,534,426
70$2,401,856$0$0$1,648,030
71$2,581,117$0$0$1,771,871
72$2,776,594$0$0$1,906,949
73$2,989,873$0$0$2,054,368
74$3,222,704$0$0$2,215,339
75$3,477,011$0$0$2,391,200
76$3,754,913$0$0$2,583,420
77$4,058,744$0$0$2,793,618
78$4,391,072$0$0$3,023,578
79$4,754,725$0$0$3,275,261
80$5,152,817$0$0$3,550,829
81$5,588,778$0$0$3,852,662
82$6,066,383$0$0$4,183,381
83$6,589,791$0$0$4,545,872
84$7,163,584$0$0$4,943,315
85$7,792,804$0$0$5,379,211
86$8,483,010$0$0$5,857,415
87$9,240,319$0$0$6,382,177
88$10,071,473$0$0$6,958,174
89$10,983,897$0$0$7,590,561
90$11,985,770$0$0$8,285,015
91$13,086,102$0$0$9,047,790
92$14,294,817$0$0$9,885,776
93$15,622,851$0$0$10,806,563
94$17,082,248$0$0$11,818,511
95$18,686,278$0$0$12,930,834
96$20,449,561$0$0$14,153,678
97$22,388,203$0$0$15,498,225
98$24,519,950$0$0$16,976,794
99$26,864,351$0$0$18,602,955
100$29,442,947$0$0$20,391,663