Can I retire at age 40 with 423,000?

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 $423,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$34,931$34,620$34,316$34,020$33,731$33,518
2 years$17,293$16,970$16,658$16,356$16,062$15,848
3 years$11,414$11,090$10,779$10,479$10,191$9,981
4 years$8,475$8,153$7,844$7,550$7,268$7,065
5 years$6,712$6,392$6,088$5,799$5,525$5,329
6 years$5,537$5,219$4,920$4,637$4,372$4,183
7 years$4,699$4,383$4,088$3,813$3,555$3,374
8 years$4,070$3,757$3,467$3,198$2,950$2,775
9 years$3,581$3,271$2,986$2,724$2,484$2,317
10 years$3,190$2,884$2,604$2,348$2,116$1,957
11 years$2,871$2,567$2,292$2,044$1,820$1,668
12 years$2,604$2,304$2,034$1,793$1,577$1,432
13 years$2,379$2,082$1,817$1,583$1,375$1,237
14 years$2,187$1,893$1,633$1,405$1,206$1,074
15 years$2,020$1,729$1,474$1,253$1,062$936
16 years$1,874$1,586$1,337$1,122$938$819
17 years$1,745$1,461$1,216$1,008$832$719
18 years$1,631$1,350$1,110$908$740$632
19 years$1,529$1,251$1,016$821$659$558
20 years$1,438$1,163$933$743$589$493
21 years$1,355$1,083$858$675$527$436
22 years$1,280$1,011$791$613$472$387
23 years$1,211$945$730$559$424$343
24 years$1,148$886$675$510$381$305
25 years$1,091$831$625$465$343$271
26 years$1,037$781$580$425$309$242
27 years$988$735$539$389$279$215
28 years$943$693$501$357$251$192
29 years$900$654$466$327$227$171
30 years$861$617$434$300$205$153
31 years$824$584$405$276$185$137
32 years$790$552$378$253$168$122
33 years$758$523$353$233$152$109
34 years$727$496$329$214$137$98
35 years$699$470$308$197$124$87
36 years$672$446$288$182$113$78
37 years$646$424$270$168$102$70
38 years$622$403$253$154$93$63
39 years$600$383$237$142$84$56
40 years$578$364$222$131$76$50
41 years$558$347$208$121$69$45
42 years$539$330$195$112$63$40
43 years$520$315$183$103$57$36
44 years$503$300$172$95$52$32
45 years$486$286$161$88$47$29
46 years$470$273$152$81$43$26
47 years$455$260$142$75$39$23
48 years$440$249$134$69$35$21
49 years$426$237$126$64$32$19
50 years$413$227$118$59$29$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $423,000, adding $6,954 every year, while hoping to spend $29,824 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: 26/48/26 Blend
39$423,000$423,000$423,000$423,000
40$473,319$450,900$444,344$481,631
41$489,865$441,262$427,497$479,277
42$507,099$430,151$409,086$473,732
43$525,060$417,466$389,027$467,162
44$543,790$403,095$367,233$459,498
45$563,333$386,923$343,611$450,672
46$583,737$368,827$318,067$440,609
47$605,056$348,677$290,499$429,232
48$627,345$326,335$260,805$416,460
49$650,666$301,657$228,873$402,209
50$675,084$274,489$194,591$386,389
51$700,671$244,668$157,839$368,906
52$727,506$212,022$118,492$349,665
53$755,672$176,372$76,422$328,562
54$785,260$137,523$31,492$305,491
55$816,370$95,276$0$280,340
56$849,111$49,415$0$257,560
57$883,599$0$0$242,082
58$919,963$0$0$225,229
59$958,343$0$0$235,018
60$998,891$0$0$245,389
61$1,041,773$0$0$256,390
62$1,087,170$0$0$268,071
63$1,135,281$0$0$280,488
64$1,186,321$0$0$293,701
65$1,240,527$0$0$307,777
66$1,298,159$0$0$322,788
67$1,359,498$0$0$338,814
68$1,424,855$0$0$355,943
69$1,494,569$0$0$374,270
70$1,569,012$0$0$393,900
71$1,648,591$0$0$414,947
72$1,733,752$0$0$437,540
73$1,824,986$0$0$461,815
74$1,922,829$0$0$487,925
75$2,027,870$0$0$516,036
76$2,140,756$0$0$546,333
77$2,262,197$0$0$579,017
78$2,392,972$0$0$614,308
79$2,533,937$0$0$652,451
80$2,686,032$0$0$693,712
81$2,850,290$0$0$738,384
82$3,027,847$0$0$786,792
83$3,219,949$0$0$839,290
84$3,427,969$0$0$896,268
85$3,653,414$0$0$958,156
86$3,897,941$0$0$1,025,426
87$4,163,374$0$0$1,098,599
88$4,451,719$0$0$1,178,245
89$4,765,181$0$0$1,264,994
90$5,106,186$0$0$1,359,539
91$5,477,405$0$0$1,462,641
92$5,881,776$0$0$1,575,139
93$6,322,531$0$0$1,697,956
94$6,803,229$0$0$1,832,108
95$7,327,786$0$0$1,978,713
96$7,900,512$0$0$2,139,004
97$8,526,154$0$0$2,314,337
98$9,209,933$0$0$2,506,203
99$9,957,604$0$0$2,716,248
100$10,775,496$0$0$2,946,281