Can I retire at age 40 with 404,000?

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 $404,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$33,362$33,065$32,775$32,492$32,216$31,656
2 years$16,516$16,208$15,910$15,621$15,341$14,779
3 years$10,901$10,592$10,295$10,009$9,733$9,186
4 years$8,094$7,786$7,492$7,211$6,942$6,414
5 years$6,411$6,105$5,814$5,538$5,277$4,770
6 years$5,289$4,985$4,699$4,429$4,175$3,690
7 years$4,488$4,186$3,905$3,641$3,396$2,932
8 years$3,887$3,588$3,311$3,055$2,817$2,375
9 years$3,420$3,124$2,852$2,602$2,372$1,951
10 years$3,047$2,754$2,487$2,243$2,021$1,621
11 years$2,742$2,452$2,189$1,952$1,738$1,359
12 years$2,487$2,201$1,943$1,712$1,507$1,147
13 years$2,273$1,989$1,736$1,512$1,314$973
14 years$2,089$1,808$1,560$1,342$1,152$830
15 years$1,929$1,651$1,408$1,197$1,014$710
16 years$1,790$1,515$1,277$1,071$896$610
17 years$1,667$1,395$1,162$963$795$525
18 years$1,558$1,289$1,060$868$706$453
19 years$1,461$1,195$971$784$630$392
20 years$1,373$1,110$891$710$562$340
21 years$1,294$1,034$820$644$503$295
22 years$1,222$965$755$586$451$256
23 years$1,157$903$697$534$405$223
24 years$1,097$846$645$487$364$194
25 years$1,042$794$597$444$328$169
26 years$991$746$554$406$295$147
27 years$944$702$514$372$266$128
28 years$900$662$478$341$240$112
29 years$860$624$445$313$217$98
30 years$822$590$415$287$196$85
31 years$787$557$386$263$177$75
32 years$754$527$361$242$160$65
33 years$724$499$337$223$145$57
34 years$695$473$315$205$131$50
35 years$667$449$294$189$119$44
36 years$642$426$275$174$108$38
37 years$617$405$258$160$98$33
38 years$595$385$241$147$88$29
39 years$573$366$226$136$80$25
40 years$552$348$212$125$73$22
41 years$533$331$199$116$66$20
42 years$514$315$186$107$60$17
43 years$497$301$175$99$54$15
44 years$480$286$164$91$49$13
45 years$464$273$154$84$45$11
46 years$449$261$145$78$41$10
47 years$434$249$136$72$37$9
48 years$420$237$128$66$34$8
49 years$407$227$120$61$30$7
50 years$394$217$113$57$28$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $404,000, adding $2,500 every year, while hoping to spend $30,176 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: 47/25/28 Blend
39$404,000$404,000$404,000$404,000
40$447,787$426,375$420,113$465,136
41$461,354$415,160$402,079$466,417
42$475,294$402,385$382,431$464,671
43$489,612$387,940$361,081$462,193
44$504,315$371,711$337,939$458,930
45$519,407$353,577$312,912$454,827
46$534,894$333,410$285,902$449,822
47$550,779$311,073$256,806$443,855
48$567,067$286,424$225,517$436,857
49$583,759$259,310$191,924$428,758
50$600,858$229,572$155,908$419,483
51$618,364$197,039$117,350$408,953
52$636,276$161,533$76,120$397,084
53$654,593$122,865$32,087$383,787
54$673,311$80,834$0$368,968
55$692,424$35,231$0$356,979
56$711,926$0$0$353,781
57$731,806$0$0$353,610
58$752,053$0$0$363,296
59$772,652$0$0$373,139
60$793,584$0$0$383,128
61$814,828$0$0$393,252
62$836,359$0$0$403,497
63$858,145$0$0$413,846
64$880,153$0$0$424,281
65$902,342$0$0$434,778
66$924,666$0$0$445,314
67$947,070$0$0$455,859
68$969,494$0$0$466,382
69$991,868$0$0$476,844
70$1,014,115$0$0$487,205
71$1,036,145$0$0$497,417
72$1,057,858$0$0$507,426
73$1,079,140$0$0$517,174
74$1,099,864$0$0$526,592
75$1,119,888$0$0$535,607
76$1,139,050$0$0$544,132
77$1,157,173$0$0$552,076
78$1,174,056$0$0$559,331
79$1,189,475$0$0$565,781
80$1,203,179$0$0$571,295
81$1,214,892$0$0$575,727
82$1,224,302$0$0$578,915
83$1,231,065$0$0$580,679
84$1,234,797$0$0$580,818
85$1,235,072$0$0$579,111
86$1,231,416$0$0$575,309
87$1,223,305$0$0$569,139
88$1,210,153$0$0$560,297
89$1,191,315$0$0$548,446
90$1,166,075$0$0$533,212
91$1,133,637$0$0$514,183
92$1,093,122$0$0$490,900
93$1,043,555$0$0$462,856
94$983,860$0$0$429,492
95$912,842$0$0$390,186
96$829,182$0$0$344,253
97$731,421$0$0$290,934
98$617,944$0$0$229,391
99$486,968$0$0$158,698
100$336,522$0$0$77,829