Can I retire at age 40 with 425,000?

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 $425,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.4%
1 years$35,096$34,783$34,478$34,181$33,890$33,550
2 years$17,374$17,051$16,737$16,433$16,138$15,796
3 years$11,468$11,143$10,830$10,529$10,239$9,904
4 years$8,515$8,191$7,881$7,585$7,302$6,979
5 years$6,744$6,422$6,116$5,826$5,551$5,239
6 years$5,564$5,244$4,943$4,659$4,392$4,093
7 years$4,721$4,404$4,108$3,831$3,572$3,285
8 years$4,089$3,775$3,484$3,213$2,963$2,688
9 years$3,598$3,287$3,000$2,737$2,496$2,232
10 years$3,205$2,897$2,616$2,359$2,126$1,875
11 years$2,884$2,579$2,303$2,053$1,829$1,589
12 years$2,617$2,315$2,044$1,801$1,585$1,357
13 years$2,391$2,092$1,826$1,590$1,382$1,165
14 years$2,197$1,902$1,641$1,412$1,211$1,006
15 years$2,029$1,737$1,481$1,259$1,067$871
16 years$1,883$1,594$1,343$1,127$943$758
17 years$1,754$1,468$1,222$1,013$836$661
18 years$1,639$1,356$1,116$913$743$578
19 years$1,537$1,257$1,021$825$662$506
20 years$1,444$1,168$937$747$592$445
21 years$1,361$1,088$862$678$530$391
22 years$1,286$1,016$795$616$475$344
23 years$1,217$950$734$561$426$303
24 years$1,154$890$679$512$383$268
25 years$1,096$835$628$468$345$237
26 years$1,042$785$583$428$310$209
27 years$993$739$541$391$280$185
28 years$947$696$503$359$253$164
29 years$905$657$468$329$228$145
30 years$865$620$436$302$206$129
31 years$828$586$407$277$186$114
32 years$794$555$379$255$168$101
33 years$761$525$354$234$152$90
34 years$731$498$331$215$138$80
35 years$702$472$309$198$125$71
36 years$675$448$289$183$113$63
37 years$650$426$271$168$103$56
38 years$625$405$254$155$93$50
39 years$603$385$238$143$84$44
40 years$581$366$223$132$77$39
41 years$561$348$209$122$69$35
42 years$541$332$196$112$63$31
43 years$523$316$184$104$57$27
44 years$505$301$173$96$52$24
45 years$488$287$162$88$47$22
46 years$472$274$152$82$43$19
47 years$457$262$143$75$39$17
48 years$442$250$134$70$35$15
49 years$428$239$126$64$32$14
50 years$415$228$119$60$29$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $425,000, adding $6,792 every year, while hoping to spend $28,839 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: 50/40/10 Blend
39$425,000$425,000$425,000$425,000
40$475,356$452,831$446,243$497,530
41$493,158$444,335$430,508$504,935
42$511,809$434,457$413,279$509,358
43$531,365$423,097$394,476$513,497
44$551,888$410,152$374,014$517,335
45$573,443$395,512$351,807$520,852
46$596,103$379,061$327,761$524,031
47$619,946$360,675$301,780$526,851
48$645,056$340,223$273,766$529,296
49$671,526$317,569$243,612$531,348
50$699,457$292,566$211,208$532,990
51$728,960$265,060$176,442$534,206
52$760,154$234,888$139,193$534,981
53$793,171$201,878$99,337$535,304
54$828,152$165,848$56,743$535,162
55$865,255$126,606$11,275$534,548
56$904,651$83,950$0$533,456
57$946,526$37,664$0$535,858
58$991,085$0$0$539,323
59$1,038,550$0$0$548,164
60$1,089,169$0$0$575,296
61$1,143,208$0$0$604,289
62$1,200,961$0$0$635,304
63$1,262,752$0$0$668,519
64$1,328,933$0$0$704,126
65$1,399,892$0$0$742,339
66$1,476,054$0$0$783,390
67$1,557,886$0$0$827,537
68$1,645,900$0$0$875,061
69$1,740,658$0$0$926,270
70$1,842,778$0$0$981,504
71$1,952,939$0$0$1,041,136
72$2,071,885$0$0$1,105,575
73$2,200,435$0$0$1,175,271
74$2,339,490$0$0$1,250,719
75$2,490,039$0$0$1,332,464
76$2,653,170$0$0$1,421,103
77$2,830,078$0$0$1,517,295
78$3,022,078$0$0$1,621,761
79$3,230,618$0$0$1,735,299
80$3,457,287$0$0$1,858,784
81$3,703,837$0$0$1,993,179
82$3,972,194$0$0$2,139,542
83$4,264,475$0$0$2,299,041
84$4,583,013$0$0$2,472,959
85$4,930,374$0$0$2,662,709
86$5,309,383$0$0$2,869,844
87$5,723,148$0$0$3,096,076
88$6,175,092$0$0$3,343,290
89$6,668,982$0$0$3,613,559
90$7,208,965$0$0$3,909,166
91$7,799,609$0$0$4,232,628
92$8,445,942$0$0$4,586,711
93$9,153,499$0$0$4,974,464
94$9,928,379$0$0$5,399,246
95$10,777,295$0$0$5,864,753
96$11,707,642$0$0$6,375,058
97$12,727,562$0$0$6,934,644
98$13,846,025$0$0$7,548,453
99$15,072,909$0$0$8,221,924
100$16,419,095$0$0$8,961,050