Can I retire at age 40 with 427,000?

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 $427,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.4%
1 years$35,261$34,947$34,641$34,342$34,050$32,894
2 years$17,456$17,131$16,816$16,510$16,214$15,061
3 years$11,522$11,195$10,881$10,578$10,287$9,173
4 years$8,555$8,230$7,919$7,621$7,337$6,271
5 years$6,776$6,452$6,145$5,854$5,577$4,562
6 years$5,590$5,269$4,966$4,681$4,413$3,449
7 years$4,743$4,425$4,127$3,849$3,589$2,676
8 years$4,108$3,793$3,500$3,229$2,977$2,115
9 years$3,615$3,302$3,015$2,750$2,507$1,694
10 years$3,220$2,911$2,628$2,371$2,136$1,371
11 years$2,898$2,591$2,314$2,063$1,837$1,119
12 years$2,629$2,326$2,053$1,810$1,592$918
13 years$2,402$2,102$1,835$1,598$1,388$758
14 years$2,207$1,911$1,648$1,418$1,217$628
15 years$2,039$1,745$1,488$1,265$1,072$522
16 years$1,892$1,601$1,349$1,132$947$435
17 years$1,762$1,475$1,228$1,018$840$363
18 years$1,647$1,363$1,121$917$747$304
19 years$1,544$1,263$1,026$829$666$255
20 years$1,451$1,174$942$750$594$214
21 years$1,368$1,093$866$681$532$180
22 years$1,292$1,020$798$619$477$151
23 years$1,222$954$737$564$428$127
24 years$1,159$894$682$514$385$107
25 years$1,101$839$631$470$346$90
26 years$1,047$789$586$430$312$76
27 years$998$742$544$393$281$64
28 years$952$699$505$360$254$54
29 years$909$660$470$330$229$45
30 years$869$623$438$303$207$38
31 years$832$589$408$278$187$32
32 years$797$557$381$256$169$27
33 years$765$528$356$235$153$23
34 years$734$500$332$216$139$19
35 years$705$474$311$199$126$16
36 years$678$450$291$184$114$14
37 years$653$428$272$169$103$12
38 years$628$407$255$156$94$10
39 years$605$387$239$144$85$8
40 years$584$368$224$133$77$7
41 years$563$350$210$122$70$6
42 years$544$333$197$113$63$5
43 years$525$318$185$104$57$4
44 years$507$303$173$96$52$4
45 years$490$289$163$89$47$3
46 years$474$275$153$82$43$3
47 years$459$263$144$76$39$2
48 years$444$251$135$70$35$2
49 years$430$240$127$65$32$2
50 years$417$229$119$60$29$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $427,000, adding $4,535 every year, while hoping to spend $28,134 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: 55/33/12 Blend
39$427,000$427,000$427,000$427,000
40$475,232$452,601$445,982$499,669
41$493,771$444,844$430,988$509,001
42$513,259$435,764$414,549$515,702
43$533,761$425,267$396,587$522,342
44$555,351$413,251$377,019$528,918
45$578,109$399,613$355,761$535,433
46$602,121$384,238$332,724$541,888
47$627,480$367,009$307,813$548,289
48$654,291$347,800$280,933$554,642
49$682,665$326,478$251,980$560,957
50$712,724$302,903$220,849$567,247
51$744,603$276,927$187,428$573,526
52$778,448$248,391$151,602$579,817
53$814,418$217,131$113,250$586,142
54$852,690$182,972$72,244$592,532
55$893,454$145,727$28,454$599,023
56$936,920$105,201$0$605,657
57$983,318$61,189$0$614,824
58$1,032,900$13,471$0$628,284
59$1,085,943$0$0$642,475
60$1,142,747$0$0$671,363
61$1,203,646$0$0$707,605
62$1,269,003$0$0$746,527
63$1,339,218$0$0$788,372
64$1,414,729$0$0$833,404
65$1,496,018$0$0$881,916
66$1,583,614$0$0$934,226
67$1,678,097$0$0$990,685
68$1,780,105$0$0$1,051,681
69$1,890,340$0$0$1,117,636
70$2,009,572$0$0$1,189,017
71$2,138,647$0$0$1,266,337
72$2,278,498$0$0$1,350,158
73$2,430,146$0$0$1,441,101
74$2,594,719$0$0$1,539,847
75$2,773,455$0$0$1,647,145
76$2,967,715$0$0$1,763,820
77$3,178,997$0$0$1,890,778
78$3,408,951$0$0$2,029,019
79$3,659,389$0$0$2,179,639
80$3,932,307$0$0$2,343,848
81$4,229,903$0$0$2,522,976
82$4,554,593$0$0$2,718,486
83$4,909,039$0$0$2,931,991
84$5,296,169$0$0$3,165,264
85$5,719,208$0$0$3,420,259
86$6,181,707$0$0$3,699,125
87$6,687,573$0$0$4,004,231
88$7,241,110$0$0$4,338,183
89$7,847,058$0$0$4,703,853
90$8,510,634$0$0$5,104,400
91$9,237,585$0$0$5,543,307
92$10,034,238$0$0$6,024,408
93$10,907,565$0$0$6,551,925
94$11,865,241$0$0$7,130,509
95$12,915,721$0$0$7,765,283
96$14,068,317$0$0$8,461,889
97$15,333,286$0$0$9,226,542
98$16,721,927$0$0$10,066,088
99$18,246,686$0$0$10,988,068
100$19,921,272$0$0$12,000,791