Can I retire at age 40 with 420,000?

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 $420,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$34,683$34,374$34,073$33,779$33,491$32,882
2 years$17,170$16,850$16,540$16,240$15,948$15,337
3 years$11,333$11,012$10,703$10,405$10,118$9,524
4 years$8,415$8,095$7,789$7,496$7,216$6,643
5 years$6,665$6,346$6,044$5,758$5,486$4,935
6 years$5,498$5,182$4,885$4,605$4,341$3,814
7 years$4,665$4,352$4,059$3,786$3,530$3,027
8 years$4,041$3,731$3,443$3,176$2,929$2,449
9 years$3,556$3,248$2,965$2,705$2,466$2,010
10 years$3,167$2,863$2,585$2,332$2,101$1,668
11 years$2,850$2,549$2,276$2,029$1,807$1,396
12 years$2,586$2,288$2,020$1,780$1,566$1,176
13 years$2,363$2,067$1,805$1,571$1,366$997
14 years$2,171$1,879$1,621$1,395$1,197$849
15 years$2,006$1,717$1,464$1,244$1,054$726
16 years$1,861$1,575$1,327$1,114$932$623
17 years$1,733$1,451$1,208$1,001$826$535
18 years$1,620$1,340$1,102$902$734$461
19 years$1,518$1,242$1,009$815$655$398
20 years$1,427$1,154$926$738$585$345
21 years$1,345$1,075$852$670$523$298
22 years$1,270$1,004$785$609$469$259
23 years$1,202$939$725$555$421$225
24 years$1,140$880$671$506$378$195
25 years$1,083$825$621$462$341$170
26 years$1,030$776$576$422$307$148
27 years$981$730$535$387$277$129
28 years$936$688$497$354$250$112
29 years$894$649$463$325$225$98
30 years$855$613$431$298$204$85
31 years$818$579$402$274$184$74
32 years$784$548$375$252$167$65
33 years$752$519$350$231$151$57
34 years$722$492$327$213$136$49
35 years$694$467$306$196$124$43
36 years$667$443$286$181$112$38
37 years$642$421$268$166$101$33
38 years$618$400$251$153$92$29
39 years$596$380$235$141$83$25
40 years$574$362$220$130$76$22
41 years$554$344$206$120$69$19
42 years$535$328$194$111$62$17
43 years$516$312$182$102$57$15
44 years$499$298$171$95$51$13
45 years$482$284$160$87$47$11
46 years$467$271$150$81$42$10
47 years$452$259$141$75$38$9
48 years$437$247$133$69$35$7
49 years$423$236$125$64$32$7
50 years$410$225$117$59$29$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $420,000, adding $2,945 every year, while hoping to spend $24,989 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: 81/13/6 Blend
39$420,000$420,000$420,000$420,000
40$465,878$443,618$437,108$503,177
41$486,809$438,767$425,163$523,154
42$509,038$432,841$411,980$541,447
43$532,670$425,761$397,492$560,756
44$557,822$417,442$381,627$581,170
45$584,620$407,797$364,312$602,785
46$613,203$396,731$345,468$625,708
47$643,724$384,145$325,016$650,056
48$676,349$369,933$302,869$675,958
49$711,261$353,984$278,939$703,557
50$748,661$336,181$253,135$733,011
51$788,769$316,398$225,359$764,492
52$831,825$294,503$195,511$798,192
53$878,095$270,358$163,484$834,322
54$927,870$243,814$129,170$873,115
55$981,468$214,716$92,452$914,827
56$1,039,240$182,900$53,212$959,741
57$1,101,571$148,191$11,323$1,008,170
58$1,168,885$110,405$0$1,060,457
59$1,241,645$69,349$0$1,119,122
60$1,320,364$24,818$0$1,183,357
61$1,405,601$0$0$1,252,909
62$1,497,976$0$0$1,331,647
63$1,598,167$0$0$1,420,907
64$1,706,920$0$0$1,517,804
65$1,825,056$0$0$1,623,072
66$1,953,480$0$0$1,737,516
67$2,093,184$0$0$1,862,023
68$2,245,262$0$0$1,997,570
69$2,410,917$0$0$2,145,229
70$2,591,473$0$0$2,306,183
71$2,788,388$0$0$2,481,731
72$3,003,263$0$0$2,673,306
73$3,237,866$0$0$2,882,481
74$3,494,138$0$0$3,110,993
75$3,774,220$0$0$3,360,749
76$4,080,466$0$0$3,633,852
77$4,415,469$0$0$3,932,616
78$4,782,084$0$0$4,259,590
79$5,183,456$0$0$4,617,579
80$5,623,046$0$0$5,009,673
81$6,104,667$0$0$5,439,276
82$6,632,517$0$0$5,910,135
83$7,211,221$0$0$6,426,377
84$7,845,872$0$0$6,992,548
85$8,542,079$0$0$7,613,655
86$9,306,021$0$0$8,295,213
87$10,144,503$0$0$9,043,296
88$11,065,023$0$0$9,864,596
89$12,075,837$0$0$10,766,483
90$13,186,044$0$0$11,757,077
91$14,405,663$0$0$12,845,322
92$15,745,735$0$0$14,041,073
93$17,218,421$0$0$15,355,185
94$18,837,120$0$0$16,799,616
95$20,616,592$0$0$18,387,543
96$22,573,099$0$0$20,133,481
97$24,724,560$0$0$22,053,423
98$27,090,713$0$0$24,164,988
99$29,693,308$0$0$26,487,589
100$32,556,306$0$0$29,042,615