Can I retire at age 40 with 416,000?

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 $416,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12%
1 years$34,353$34,047$33,748$33,457$33,172$32,894
2 years$17,006$16,690$16,383$16,085$15,796$15,516
3 years$11,225$10,907$10,601$10,306$10,022$9,748
4 years$8,335$8,018$7,715$7,425$7,148$6,883
5 years$6,601$6,286$5,987$5,703$5,434$5,178
6 years$5,446$5,133$4,838$4,561$4,299$4,053
7 years$4,621$4,311$4,021$3,750$3,497$3,260
8 years$4,002$3,695$3,410$3,145$2,901$2,674
9 years$3,522$3,217$2,937$2,679$2,443$2,226
10 years$3,137$2,836$2,560$2,310$2,081$1,874
11 years$2,823$2,525$2,254$2,010$1,790$1,593
12 years$2,561$2,266$2,001$1,763$1,551$1,363
13 years$2,340$2,048$1,787$1,556$1,353$1,174
14 years$2,151$1,861$1,606$1,382$1,186$1,015
15 years$1,986$1,700$1,450$1,232$1,044$882
16 years$1,843$1,560$1,315$1,103$923$769
17 years$1,717$1,437$1,196$991$818$673
18 years$1,604$1,328$1,092$893$727$590
19 years$1,504$1,230$1,000$807$648$519
20 years$1,414$1,143$917$731$579$457
21 years$1,332$1,065$844$664$518$403
22 years$1,258$994$778$603$465$356
23 years$1,191$930$718$549$417$314
24 years$1,129$871$664$501$375$278
25 years$1,073$818$615$458$337$247
26 years$1,020$768$570$418$304$219
27 years$972$723$530$383$274$194
28 years$927$681$492$351$247$172
29 years$886$643$458$322$223$153
30 years$847$607$427$295$202$136
31 years$811$574$398$271$182$121
32 years$777$543$371$249$165$108
33 years$745$514$347$229$149$96
34 years$715$487$324$211$135$86
35 years$687$462$303$194$122$76
36 years$661$439$283$179$111$68
37 years$636$417$265$165$101$61
38 years$612$396$248$152$91$54
39 years$590$377$233$140$83$48
40 years$569$358$218$129$75$43
41 years$549$341$204$119$68$38
42 years$530$325$192$110$62$34
43 years$512$309$180$102$56$30
44 years$494$295$169$94$51$27
45 years$478$281$159$87$46$24
46 years$462$268$149$80$42$22
47 years$447$256$140$74$38$19
48 years$433$244$132$68$35$17
49 years$419$233$124$63$31$15
50 years$406$223$116$58$29$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $416,000, adding $5,866 every year, while hoping to spend $30,238 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: 53/24/23 Blend
39$416,000$416,000$416,000$416,000
40$464,483$442,435$435,987$485,865
41$479,687$431,941$418,419$490,737
42$495,429$419,920$399,250$492,423
43$511,731$406,264$378,393$493,625
44$528,617$390,861$355,759$494,309
45$546,113$373,591$331,255$494,437
46$564,247$354,327$304,782$493,970
47$583,047$332,936$276,239$492,867
48$602,544$309,276$245,519$491,086
49$622,771$283,197$212,511$488,580
50$643,762$254,542$177,098$485,303
51$665,554$223,143$139,159$481,206
52$688,187$188,823$98,568$476,238
53$711,703$151,397$55,190$470,344
54$736,147$110,665$8,890$463,468
55$761,568$66,422$0$455,553
56$788,017$18,446$0$456,482
57$815,550$0$0$459,222
58$844,227$0$0$470,407
59$874,112$0$0$487,147
60$905,274$0$0$504,611
61$937,788$0$0$522,841
62$971,734$0$0$541,884
63$1,007,199$0$0$561,789
64$1,044,276$0$0$582,610
65$1,083,066$0$0$604,406
66$1,123,680$0$0$627,239
67$1,166,236$0$0$651,179
68$1,210,862$0$0$676,300
69$1,257,699$0$0$702,681
70$1,306,899$0$0$730,412
71$1,358,625$0$0$759,587
72$1,413,058$0$0$790,311
73$1,470,393$0$0$822,695
74$1,530,841$0$0$856,863
75$1,594,635$0$0$892,950
76$1,662,027$0$0$931,101
77$1,733,292$0$0$971,476
78$1,808,731$0$0$1,014,249
79$1,888,672$0$0$1,059,611
80$1,973,474$0$0$1,107,771
81$2,063,528$0$0$1,158,955
82$2,159,264$0$0$1,213,413
83$2,261,150$0$0$1,271,417
84$2,369,701$0$0$1,333,267
85$2,485,478$0$0$1,399,288
86$2,609,097$0$0$1,469,839
87$2,741,234$0$0$1,545,313
88$2,882,628$0$0$1,626,140
89$3,034,090$0$0$1,712,792
90$3,196,511$0$0$1,805,788
91$3,370,867$0$0$1,905,695
92$3,558,228$0$0$2,013,138
93$3,759,772$0$0$2,128,801
94$3,976,789$0$0$2,253,438
95$4,210,698$0$0$2,387,873
96$4,463,056$0$0$2,533,016
97$4,735,575$0$0$2,689,863
98$5,030,136$0$0$2,859,510
99$5,348,805$0$0$3,043,162
100$5,693,854$0$0$3,242,145