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%19.1%
1 years$33,362$33,065$32,775$32,492$32,216$31,035
2 years$16,516$16,208$15,910$15,621$15,341$14,165
3 years$10,901$10,592$10,295$10,009$9,733$8,598
4 years$8,094$7,786$7,492$7,211$6,942$5,857
5 years$6,411$6,105$5,814$5,538$5,277$4,245
6 years$5,289$4,985$4,699$4,429$4,175$3,197
7 years$4,488$4,186$3,905$3,641$3,396$2,471
8 years$3,887$3,588$3,311$3,055$2,817$1,944
9 years$3,420$3,124$2,852$2,602$2,372$1,551
10 years$3,047$2,754$2,487$2,243$2,021$1,250
11 years$2,742$2,452$2,189$1,952$1,738$1,015
12 years$2,487$2,201$1,943$1,712$1,507$830
13 years$2,273$1,989$1,736$1,512$1,314$681
14 years$2,089$1,808$1,560$1,342$1,152$562
15 years$1,929$1,651$1,408$1,197$1,014$464
16 years$1,790$1,515$1,277$1,071$896$385
17 years$1,667$1,395$1,162$963$795$320
18 years$1,558$1,289$1,060$868$706$266
19 years$1,461$1,195$971$784$630$222
20 years$1,373$1,110$891$710$562$185
21 years$1,294$1,034$820$644$503$155
22 years$1,222$965$755$586$451$129
23 years$1,157$903$697$534$405$108
24 years$1,097$846$645$487$364$91
25 years$1,042$794$597$444$328$76
26 years$991$746$554$406$295$64
27 years$944$702$514$372$266$53
28 years$900$662$478$341$240$45
29 years$860$624$445$313$217$38
30 years$822$590$415$287$196$31
31 years$787$557$386$263$177$26
32 years$754$527$361$242$160$22
33 years$724$499$337$223$145$19
34 years$695$473$315$205$131$16
35 years$667$449$294$189$119$13
36 years$642$426$275$174$108$11
37 years$617$405$258$160$98$9
38 years$595$385$241$147$88$8
39 years$573$366$226$136$80$6
40 years$552$348$212$125$73$5
41 years$533$331$199$116$66$5
42 years$514$315$186$107$60$4
43 years$497$301$175$99$54$3
44 years$480$286$164$91$49$3
45 years$464$273$154$84$45$2
46 years$449$261$145$78$41$2
47 years$434$249$136$72$37$2
48 years$420$237$128$66$34$1
49 years$407$227$120$61$30$1
50 years$394$217$113$57$28$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $404,000, adding $4,528 every year, while hoping to spend $22,072 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: 26/48/26 Blend
39$404,000$404,000$404,000$404,000
40$449,879$428,467$422,205$457,817
41$472,282$425,977$412,864$462,127
42$496,230$422,626$402,471$464,552
43$521,859$418,347$390,966$466,694
44$549,314$413,072$378,289$468,544
45$578,758$406,726$364,376$470,094
46$610,367$399,232$349,159$471,337
47$644,337$390,507$332,568$472,270
48$680,881$380,463$314,530$472,888
49$720,233$369,008$294,969$473,193
50$762,651$356,043$273,805$473,188
51$808,417$341,466$250,954$472,878
52$857,843$325,165$226,328$472,274
53$911,270$307,025$199,837$471,390
54$969,074$286,923$171,385$470,248
55$1,031,666$264,729$140,873$468,873
56$1,099,500$240,305$108,197$467,298
57$1,173,076$213,507$73,248$465,563
58$1,252,941$184,180$35,914$463,719
59$1,339,699$152,163$0$461,824
60$1,434,014$117,284$0$461,040
61$1,536,615$79,363$0$471,063
62$1,648,306$38,208$0$482,054
63$1,769,971$0$0$494,163
64$1,902,582$0$0$510,933
65$2,047,210$0$0$551,295
66$2,205,032$0$0$595,403
67$2,377,346$0$0$643,629
68$2,565,579$0$0$696,379
69$2,771,303$0$0$754,104
70$2,996,247$0$0$817,297
71$3,242,318$0$0$886,504
72$3,511,612$0$0$962,323
73$3,806,439$0$0$1,045,417
74$4,129,343$0$0$1,136,511
75$4,483,125$0$0$1,236,408
76$4,870,868$0$0$1,345,989
77$5,295,972$0$0$1,466,227
78$5,762,176$0$0$1,598,192
79$6,273,603$0$0$1,743,063
80$6,834,791$0$0$1,902,140
81$7,450,741$0$0$2,076,853
82$8,126,960$0$0$2,268,778
83$8,869,515$0$0$2,479,652
84$9,685,089$0$0$2,711,389
85$10,581,045$0$0$2,966,096
86$11,565,493$0$0$3,246,093
87$12,647,367$0$0$3,553,941
88$13,836,512$0$0$3,892,457
89$15,143,771$0$0$4,264,745
90$16,581,093$0$0$4,674,228
91$18,161,641$0$0$5,124,674
92$19,899,916$0$0$5,620,236
93$21,811,898$0$0$6,165,490
94$23,915,192$0$0$6,765,478
95$26,229,193$0$0$7,425,755
96$28,775,274$0$0$8,152,441
97$31,576,982$0$0$8,952,280
98$34,660,263$0$0$9,832,705
99$38,053,706$0$0$10,801,902
100$41,788,809$0$0$11,868,894