Can I retire at age 40 with 407,000?

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 $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%16.5%
1 years$33,610$33,310$33,018$32,733$32,455$31,593
2 years$16,638$16,329$16,028$15,737$15,455$14,593
3 years$10,982$10,671$10,371$10,083$9,805$8,970
4 years$8,155$7,844$7,548$7,264$6,993$6,191
5 years$6,458$6,150$5,857$5,580$5,316$4,549
6 years$5,328$5,022$4,734$4,462$4,206$3,475
7 years$4,521$4,217$3,934$3,668$3,421$2,726
8 years$3,916$3,615$3,336$3,077$2,838$2,178
9 years$3,446$3,148$2,873$2,621$2,390$1,765
10 years$3,069$2,774$2,505$2,260$2,036$1,446
11 years$2,762$2,470$2,205$1,966$1,751$1,194
12 years$2,506$2,217$1,957$1,725$1,518$993
13 years$2,289$2,003$1,749$1,523$1,323$830
14 years$2,104$1,821$1,571$1,352$1,160$697
15 years$1,943$1,664$1,419$1,206$1,021$587
16 years$1,803$1,526$1,286$1,079$903$496
17 years$1,679$1,406$1,170$970$800$420
18 years$1,570$1,299$1,068$874$712$356
19 years$1,471$1,204$978$790$634$303
20 years$1,383$1,119$898$715$567$258
21 years$1,304$1,042$826$649$507$220
22 years$1,231$973$761$590$455$188
23 years$1,165$910$703$538$408$160
24 years$1,105$852$650$490$367$137
25 years$1,049$800$602$448$330$117
26 years$998$752$558$409$297$100
27 years$951$707$518$375$268$86
28 years$907$667$482$343$242$73
29 years$866$629$448$315$218$63
30 years$828$594$418$289$197$54
31 years$793$561$389$265$178$46
32 years$760$531$363$244$161$40
33 years$729$503$339$224$146$34
34 years$700$477$317$206$132$29
35 years$672$452$296$190$120$25
36 years$646$429$277$175$108$21
37 years$622$408$259$161$98$18
38 years$599$387$243$149$89$16
39 years$577$368$228$137$81$14
40 years$556$351$213$126$73$12
41 years$537$334$200$117$67$10
42 years$518$318$188$108$60$9
43 years$500$303$176$99$55$7
44 years$484$289$165$92$50$6
45 years$467$275$155$85$45$5
46 years$452$263$146$78$41$5
47 years$438$251$137$72$37$4
48 years$424$239$129$67$34$3
49 years$410$228$121$62$31$3
50 years$397$218$114$57$28$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $407,000, adding $6,846 every year, while hoping to spend $28,135 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: 75/5/20 Blend
39$407,000$407,000$407,000$407,000
40$455,576$434,005$427,696$487,097
41$472,109$425,335$412,089$500,250
42$489,386$415,299$395,015$510,554
43$507,452$403,797$376,397$521,118
44$526,358$390,729$356,152$531,959
45$546,157$375,985$334,194$543,100
46$566,908$359,452$310,433$554,563
47$588,675$341,007$284,774$566,377
48$611,526$320,522$257,120$578,570
49$635,536$297,863$227,368$591,177
50$660,787$272,884$195,411$604,234
51$687,367$245,435$161,137$617,785
52$715,372$215,355$124,429$631,876
53$744,907$182,475$85,165$646,560
54$776,087$146,615$43,217$661,896
55$809,036$107,587$0$677,949
56$843,890$65,192$0$695,124
57$880,797$19,217$0$723,035
58$919,921$0$0$752,572
59$961,437$0$0$785,551
60$1,005,540$0$0$821,716
61$1,052,442$0$0$860,185
62$1,102,374$0$0$901,150
63$1,155,591$0$0$944,820
64$1,212,370$0$0$991,424
65$1,273,016$0$0$1,041,215
66$1,337,863$0$0$1,094,466
67$1,407,277$0$0$1,151,482
68$1,481,660$0$0$1,212,593
69$1,561,451$0$0$1,278,162
70$1,647,133$0$0$1,348,588
71$1,739,237$0$0$1,424,310
72$1,838,344$0$0$1,505,808
73$1,945,095$0$0$1,593,609
74$2,060,190$0$0$1,688,293
75$2,184,400$0$0$1,790,498
76$2,318,573$0$0$1,900,922
77$2,463,640$0$0$2,020,336
78$2,620,623$0$0$2,149,583
79$2,790,649$0$0$2,289,593
80$2,974,952$0$0$2,441,389
81$3,174,894$0$0$2,606,092
82$3,391,969$0$0$2,784,939
83$3,627,823$0$0$2,979,289
84$3,884,266$0$0$3,190,637
85$4,163,287$0$0$3,420,627
86$4,467,077$0$0$3,671,069
87$4,798,046$0$0$3,943,955
88$5,158,847$0$0$4,241,475
89$5,552,400$0$0$4,566,043
90$5,981,915$0$0$4,920,313
91$6,450,932$0$0$5,307,208
92$6,963,342$0$0$5,729,943
93$7,523,432$0$0$6,192,062
94$8,135,921$0$0$6,697,463
95$8,806,004$0$0$7,250,441
96$9,539,403$0$0$7,855,722
97$10,342,417$0$0$8,518,512
98$11,221,983$0$0$9,244,544
99$12,185,741$0$0$10,040,132
100$13,242,105$0$0$10,912,227