Can I retire at age 40 with 426,000?

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 $426,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.2%
1 years$35,179$34,865$34,560$34,261$33,970$32,975
2 years$17,415$17,091$16,777$16,472$16,176$15,182
3 years$11,495$11,169$10,856$10,554$10,263$9,300
4 years$8,535$8,210$7,900$7,603$7,320$6,396
5 years$6,760$6,437$6,131$5,840$5,564$4,683
6 years$5,577$5,256$4,955$4,670$4,403$3,564
7 years$4,732$4,414$4,117$3,840$3,581$2,784
8 years$4,099$3,784$3,492$3,221$2,970$2,216
9 years$3,606$3,295$3,007$2,744$2,502$1,788
10 years$3,213$2,904$2,622$2,365$2,131$1,458
11 years$2,891$2,585$2,308$2,058$1,833$1,199
12 years$2,623$2,320$2,049$1,805$1,589$992
13 years$2,396$2,097$1,830$1,594$1,385$825
14 years$2,202$1,906$1,645$1,415$1,214$690
15 years$2,034$1,741$1,485$1,262$1,069$578
16 years$1,887$1,598$1,346$1,130$945$486
17 years$1,758$1,471$1,225$1,015$838$409
18 years$1,643$1,360$1,118$915$745$346
19 years$1,540$1,260$1,024$827$664$292
20 years$1,448$1,171$939$749$593$248
21 years$1,364$1,091$864$679$531$210
22 years$1,289$1,018$796$618$476$178
23 years$1,220$952$735$563$427$151
24 years$1,156$892$680$513$384$129
25 years$1,098$837$630$469$345$109
26 years$1,045$787$584$429$311$93
27 years$995$740$542$392$281$79
28 years$949$698$504$359$253$67
29 years$907$658$469$330$229$57
30 years$867$622$437$302$207$49
31 years$830$588$408$278$187$42
32 years$795$556$380$255$169$36
33 years$763$527$355$235$153$30
34 years$732$499$332$216$138$26
35 years$704$473$310$199$125$22
36 years$677$449$290$183$114$19
37 years$651$427$272$169$103$16
38 years$627$406$254$156$93$14
39 years$604$386$238$143$85$12
40 years$582$367$223$132$77$10
41 years$562$349$209$122$70$8
42 years$542$333$196$113$63$7
43 years$524$317$184$104$57$6
44 years$506$302$173$96$52$5
45 years$489$288$162$89$47$4
46 years$473$275$153$82$43$4
47 years$458$262$143$76$39$3
48 years$443$250$135$70$35$3
49 years$429$239$127$65$32$2
50 years$416$228$119$60$29$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $426,000, adding $2,698 every year, while hoping to spend $32,123 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: 52/24/24 Blend
39$426,000$426,000$426,000$426,000
40$472,235$449,657$443,054$493,508
41$486,224$437,512$423,718$496,362
42$500,564$423,694$402,657$495,955
43$515,256$408,090$379,780$494,852
44$530,300$390,575$354,992$492,999
45$545,698$371,020$328,191$490,338
46$561,448$349,288$299,273$486,808
47$577,546$325,234$268,130$482,344
48$593,990$298,705$234,647$476,877
49$610,774$269,538$198,704$470,334
50$627,890$237,562$160,177$462,636
51$645,328$202,596$118,937$453,700
52$663,076$164,449$74,846$443,438
53$681,121$122,918$27,765$431,754
54$699,445$77,790$0$418,550
55$718,026$28,839$0$409,474
56$736,840$0$0$406,618
57$755,859$0$0$409,168
58$775,049$0$0$419,410
59$794,373$0$0$429,705
60$813,787$0$0$440,026
61$833,240$0$0$450,345
62$852,675$0$0$460,627
63$872,027$0$0$470,835
64$891,223$0$0$480,926
65$910,181$0$0$490,851
66$928,805$0$0$500,556
67$946,992$0$0$509,980
68$964,622$0$0$519,053
69$981,563$0$0$527,699
70$997,666$0$0$535,831
71$1,012,765$0$0$543,354
72$1,026,675$0$0$550,159
73$1,039,188$0$0$556,127
74$1,050,072$0$0$561,124
75$1,059,070$0$0$565,001
76$1,065,896$0$0$567,593
77$1,070,230$0$0$568,716
78$1,071,719$0$0$568,165
79$1,069,967$0$0$565,713
80$1,064,538$0$0$561,108
81$1,054,946$0$0$554,071
82$1,040,654$0$0$544,291
83$1,021,063$0$0$531,426
84$995,514$0$0$515,094
85$963,274$0$0$494,875
86$923,531$0$0$470,301
87$875,387$0$0$440,857
88$817,849$0$0$405,970
89$749,816$0$0$365,010
90$670,074$0$0$317,278
91$577,276$0$0$262,000
92$469,938$0$0$198,324
93$346,415$0$0$125,304
94$204,891$0$0$41,900
95$43,362$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0