Can I retire at age 40 with 407,000?

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 $407,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.7%
1 years$33,610$33,310$33,018$32,733$32,455$32,223
2 years$16,638$16,329$16,028$15,737$15,455$15,221
3 years$10,982$10,671$10,371$10,083$9,805$9,577
4 years$8,155$7,844$7,548$7,264$6,993$6,772
5 years$6,458$6,150$5,857$5,580$5,316$5,103
6 years$5,328$5,022$4,734$4,462$4,206$4,001
7 years$4,521$4,217$3,934$3,668$3,421$3,224
8 years$3,916$3,615$3,336$3,077$2,838$2,649
9 years$3,446$3,148$2,873$2,621$2,390$2,209
10 years$3,069$2,774$2,505$2,260$2,036$1,863
11 years$2,762$2,470$2,205$1,966$1,751$1,586
12 years$2,506$2,217$1,957$1,725$1,518$1,360
13 years$2,289$2,003$1,749$1,523$1,323$1,173
14 years$2,104$1,821$1,571$1,352$1,160$1,017
15 years$1,943$1,664$1,419$1,206$1,021$885
16 years$1,803$1,526$1,286$1,079$903$774
17 years$1,679$1,406$1,170$970$800$678
18 years$1,570$1,299$1,068$874$712$596
19 years$1,471$1,204$978$790$634$525
20 years$1,383$1,119$898$715$567$463
21 years$1,304$1,042$826$649$507$409
22 years$1,231$973$761$590$455$362
23 years$1,165$910$703$538$408$321
24 years$1,105$852$650$490$367$285
25 years$1,049$800$602$448$330$253
26 years$998$752$558$409$297$225
27 years$951$707$518$375$268$200
28 years$907$667$482$343$242$178
29 years$866$629$448$315$218$159
30 years$828$594$418$289$197$142
31 years$793$561$389$265$178$126
32 years$760$531$363$244$161$113
33 years$729$503$339$224$146$100
34 years$700$477$317$206$132$90
35 years$672$452$296$190$120$80
36 years$646$429$277$175$108$72
37 years$622$408$259$161$98$64
38 years$599$387$243$149$89$57
39 years$577$368$228$137$81$51
40 years$556$351$213$126$73$46
41 years$537$334$200$117$67$41
42 years$518$318$188$108$60$37
43 years$500$303$176$99$55$33
44 years$484$289$165$92$50$29
45 years$467$275$155$85$45$26
46 years$452$263$146$78$41$23
47 years$438$251$137$72$37$21
48 years$424$239$129$67$34$19
49 years$410$228$121$62$31$17
50 years$397$218$114$57$28$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $407,000, adding $2,231 every year, while hoping to spend $28,143 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: 69/21/10 Blend
39$407,000$407,000$407,000$407,000
40$450,815$429,244$422,936$480,866
41$466,855$420,333$407,160$492,178
42$483,586$410,042$389,913$500,930
43$501,052$398,274$371,115$509,758
44$519,296$384,926$350,683$518,662
45$538,365$369,889$328,532$527,647
46$558,312$353,046$304,572$536,717
47$579,191$334,278$278,707$545,878
48$601,064$313,453$250,839$555,138
49$623,997$290,436$220,866$564,506
50$648,059$265,082$188,680$573,992
51$673,329$237,239$154,168$583,611
52$699,891$206,745$117,215$593,380
53$727,834$173,431$77,696$603,316
54$757,260$137,116$35,486$613,443
55$788,275$97,609$0$623,788
56$820,998$54,711$0$635,401
57$855,557$8,208$0$651,406
58$892,091$0$0$668,069
59$930,754$0$0$695,187
60$971,712$0$0$725,936
61$1,015,147$0$0$758,556
62$1,061,259$0$0$793,198
63$1,110,265$0$0$830,028
64$1,162,404$0$0$869,226
65$1,217,936$0$0$910,990
66$1,277,146$0$0$955,537
67$1,340,348$0$0$1,003,103
68$1,407,884$0$0$1,053,950
69$1,480,130$0$0$1,108,362
70$1,557,496$0$0$1,166,651
71$1,640,436$0$0$1,229,161
72$1,729,443$0$0$1,296,268
73$1,825,063$0$0$1,368,384
74$1,927,891$0$0$1,445,962
75$2,038,582$0$0$1,529,501
76$2,157,857$0$0$1,619,546
77$2,286,504$0$0$1,716,698
78$2,425,393$0$0$1,821,616
79$2,575,477$0$0$1,935,025
80$2,737,805$0$0$2,057,721
81$2,913,528$0$0$2,190,580
82$3,103,914$0$0$2,334,564
83$3,310,355$0$0$2,490,732
84$3,534,383$0$0$2,660,247
85$3,777,683$0$0$2,844,389
86$4,042,107$0$0$3,044,567
87$4,329,694$0$0$3,262,330
88$4,642,687$0$0$3,499,382
89$4,983,552$0$0$3,757,599
90$5,355,007$0$0$4,039,044
91$5,760,039$0$0$4,345,989
92$6,201,936$0$0$4,680,933
93$6,684,320$0$0$5,046,629
94$7,211,176$0$0$5,446,106
95$7,786,890$0$0$5,882,698
96$8,416,292$0$0$6,360,076
97$9,104,700$0$0$6,882,284
98$9,857,969$0$0$7,453,771
99$10,682,546$0$0$8,079,439
100$11,585,531$0$0$8,764,684