Can I retire at age 40 with 405,000?

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 $405,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.9%
1 years$33,445$33,147$32,856$32,572$32,295$31,014
2 years$16,557$16,248$15,949$15,660$15,379$14,104
3 years$10,928$10,618$10,320$10,033$9,757$8,528
4 years$8,114$7,806$7,511$7,228$6,959$5,786
5 years$6,427$6,120$5,829$5,552$5,290$4,176
6 years$5,302$4,997$4,710$4,440$4,186$3,131
7 years$4,499$4,197$3,914$3,650$3,404$2,409
8 years$3,897$3,597$3,320$3,062$2,824$1,887
9 years$3,429$3,132$2,859$2,608$2,378$1,498
10 years$3,054$2,761$2,493$2,248$2,026$1,201
11 years$2,748$2,458$2,195$1,957$1,743$970
12 years$2,494$2,206$1,948$1,716$1,510$788
13 years$2,278$1,994$1,740$1,515$1,317$644
14 years$2,094$1,812$1,563$1,345$1,154$528
15 years$1,934$1,655$1,412$1,200$1,016$434
16 years$1,794$1,519$1,280$1,074$898$358
17 years$1,671$1,399$1,165$965$797$296
18 years$1,562$1,292$1,063$870$708$245
19 years$1,464$1,198$973$786$631$203
20 years$1,376$1,113$893$712$564$168
21 years$1,297$1,037$822$646$505$140
22 years$1,225$968$757$587$452$116
23 years$1,159$905$699$535$406$96
24 years$1,099$848$647$488$365$80
25 years$1,044$796$599$446$328$67
26 years$993$748$555$407$296$56
27 years$946$704$516$373$267$46
28 years$903$663$479$342$241$39
29 years$862$626$446$313$217$32
30 years$824$591$416$288$196$27
31 years$789$559$387$264$178$22
32 years$756$529$361$243$161$19
33 years$725$501$338$223$145$16
34 years$696$474$315$205$132$13
35 years$669$450$295$189$119$11
36 years$643$427$276$174$108$9
37 years$619$406$258$160$98$7
38 years$596$386$242$148$89$6
39 years$574$367$227$136$80$5
40 years$554$349$212$126$73$4
41 years$534$332$199$116$66$4
42 years$516$316$187$107$60$3
43 years$498$301$175$99$55$3
44 years$481$287$164$91$49$2
45 years$465$274$154$84$45$2
46 years$450$261$145$78$41$1
47 years$435$249$136$72$37$1
48 years$421$238$128$66$34$1
49 years$408$227$120$61$31$1
50 years$395$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 $405,000, adding $3,011 every year, while hoping to spend $29,176 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: 49/28/23 Blend
39$405,000$405,000$405,000$405,000
40$449,416$427,951$421,673$468,385
41$464,213$417,877$404,756$471,834
42$479,542$406,332$386,295$472,402
43$495,426$393,213$366,206$472,422
44$511,889$378,411$344,404$471,856
45$528,959$361,810$320,798$470,663
46$546,662$343,288$295,295$468,799
47$565,030$322,717$267,795$466,220
48$584,093$299,960$238,196$462,877
49$603,886$274,874$206,391$458,723
50$624,444$247,304$172,267$453,704
51$645,806$217,091$135,707$447,767
52$668,014$184,065$96,589$440,855
53$691,112$148,044$54,785$432,909
54$715,147$108,840$10,162$423,867
55$740,170$66,251$0$413,664
56$766,236$20,066$0$411,426
57$793,404$0$0$411,149
58$821,737$0$0$419,527
59$851,302$0$0$434,730
60$882,175$0$0$450,614
61$914,434$0$0$467,222
62$948,165$0$0$484,600
63$983,461$0$0$502,796
64$1,020,422$0$0$521,865
65$1,059,158$0$0$541,863
66$1,099,787$0$0$562,855
67$1,142,437$0$0$584,908
68$1,187,246$0$0$608,097
69$1,234,367$0$0$632,502
70$1,283,965$0$0$658,212
71$1,336,217$0$0$685,321
72$1,391,319$0$0$713,935
73$1,449,485$0$0$744,167
74$1,510,945$0$0$776,141
75$1,575,954$0$0$809,992
76$1,644,786$0$0$845,869
77$1,717,743$0$0$883,932
78$1,795,156$0$0$924,360
79$1,877,384$0$0$967,344
80$1,964,822$0$0$1,013,097
81$2,057,901$0$0$1,061,850
82$2,157,093$0$0$1,113,856
83$2,262,915$0$0$1,169,394
84$2,375,933$0$0$1,228,767
85$2,496,769$0$0$1,292,308
86$2,626,102$0$0$1,360,385
87$2,764,679$0$0$1,433,398
88$2,913,319$0$0$1,511,787
89$3,072,919$0$0$1,596,035
90$3,244,465$0$0$1,686,673
91$3,429,039$0$0$1,784,284
92$3,627,830$0$0$1,889,506
93$3,842,141$0$0$2,003,042
94$4,073,407$0$0$2,125,664
95$4,323,202$0$0$2,258,221
96$4,593,257$0$0$2,401,644
97$4,885,474$0$0$2,556,959
98$5,201,943$0$0$2,725,291
99$5,544,964$0$0$2,907,881
100$5,917,065$0$0$3,106,090