Can I retire at age 40 with 784,000?

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 $784,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$64,742$64,165$63,603$63,053$62,517$61,736
2 years$32,050$31,454$30,875$30,314$29,770$28,984
3 years$21,155$20,555$19,978$19,423$18,887$18,121
4 years$15,708$15,110$14,539$13,993$13,471$12,730
5 years$12,441$11,847$11,283$10,748$10,240$9,527
6 years$10,263$9,674$9,118$8,595$8,103$7,418
7 years$8,709$8,124$7,577$7,067$6,590$5,934
8 years$7,543$6,964$6,426$5,928$5,467$4,839
9 years$6,637$6,063$5,535$5,049$4,604$4,005
10 years$5,913$5,344$4,825$4,353$3,923$3,352
11 years$5,320$4,758$4,248$3,788$3,374$2,830
12 years$4,827$4,270$3,770$3,323$2,924$2,407
13 years$4,410$3,859$3,368$2,933$2,549$2,059
14 years$4,053$3,508$3,027$2,604$2,235$1,770
15 years$3,744$3,204$2,733$2,322$1,968$1,527
16 years$3,473$2,940$2,477$2,079$1,739$1,323
17 years$3,235$2,708$2,254$1,868$1,542$1,149
18 years$3,024$2,502$2,058$1,684$1,371$1,000
19 years$2,835$2,319$1,884$1,521$1,222$873
20 years$2,665$2,155$1,729$1,378$1,092$763
21 years$2,511$2,007$1,590$1,250$977$668
22 years$2,372$1,874$1,466$1,137$876$585
23 years$2,244$1,752$1,353$1,035$786$514
24 years$2,128$1,642$1,252$944$706$451
25 years$2,021$1,541$1,159$862$636$397
26 years$1,923$1,448$1,075$789$573$349
27 years$1,832$1,363$998$722$516$307
28 years$1,747$1,284$928$661$466$271
29 years$1,669$1,211$864$606$421$239
30 years$1,596$1,144$805$557$380$211
31 years$1,528$1,082$750$511$344$186
32 years$1,464$1,023$700$470$311$164
33 years$1,404$969$653$432$281$145
34 years$1,348$919$610$397$255$128
35 years$1,295$871$571$366$231$113
36 years$1,245$827$534$337$209$100
37 years$1,198$785$500$311$189$88
38 years$1,154$746$468$286$172$78
39 years$1,112$710$438$264$156$69
40 years$1,072$675$411$243$141$61
41 years$1,034$643$385$225$128$54
42 years$998$612$361$207$116$48
43 years$964$583$339$191$106$42
44 years$932$556$318$177$96$37
45 years$901$530$299$163$87$33
46 years$871$506$281$151$79$29
47 years$843$483$264$139$72$26
48 years$816$461$248$129$65$23
49 years$790$440$233$119$59$20
50 years$765$420$219$110$54$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $784,000, adding $2,730 every year, while hoping to spend $49,098 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: 54/32/14 Blend
39$784,000$784,000$784,000$784,000
40$866,784$825,232$813,080$910,252
41$902,956$813,428$788,078$928,351
42$941,172$799,401$760,593$942,532
43$981,589$782,989$730,490$956,846
44$1,024,377$764,022$697,628$971,319
45$1,069,724$742,319$661,859$985,979
46$1,117,833$717,690$623,029$1,000,863
47$1,168,928$689,933$580,976$1,016,011
48$1,223,252$658,833$535,532$1,031,473
49$1,281,073$624,165$486,522$1,047,307
50$1,342,683$585,689$433,761$1,063,579
51$1,408,401$543,153$377,056$1,080,368
52$1,478,579$496,288$316,209$1,097,763
53$1,553,601$444,813$251,008$1,115,868
54$1,633,887$388,427$181,235$1,134,802
55$1,719,899$326,816$106,663$1,154,701
56$1,812,145$259,646$27,052$1,175,720
57$1,911,179$186,564$0$1,198,035
58$2,017,612$107,199$0$1,230,497
59$2,132,113$21,156$0$1,269,558
60$2,255,418$0$0$1,311,472
61$2,388,333$0$0$1,381,916
62$2,531,745$0$0$1,466,019
63$2,686,630$0$0$1,556,910
64$2,854,057$0$0$1,655,224
65$3,035,203$0$0$1,761,661
66$3,231,363$0$0$1,876,989
67$3,443,957$0$0$2,002,053
68$3,674,551$0$0$2,137,782
69$3,924,863$0$0$2,285,198
70$4,196,786$0$0$2,445,426
71$4,492,400$0$0$2,619,702
72$4,813,994$0$0$2,809,387
73$5,164,086$0$0$3,015,977
74$5,545,449$0$0$3,241,121
75$5,961,132$0$0$3,486,631
76$6,414,490$0$0$3,754,503
77$6,909,219$0$0$4,046,933
78$7,449,384$0$0$4,366,340
79$8,039,462$0$0$4,715,384
80$8,684,381$0$0$5,096,997
81$9,389,565$0$0$5,514,405
82$10,160,989$0$0$5,971,160
83$11,005,229$0$0$6,471,174
84$11,929,528$0$0$7,018,754
85$12,941,861$0$0$7,618,645
86$14,051,011$0$0$8,276,070
87$15,266,650$0$0$8,996,782
88$16,599,431$0$0$9,787,119
89$18,061,087$0$0$10,654,058
90$19,664,540$0$0$11,605,288
91$21,424,023$0$0$12,649,276
92$23,355,215$0$0$13,795,348
93$25,475,386$0$0$15,053,779
94$27,803,559$0$0$16,435,886
95$30,360,692$0$0$17,954,136
96$33,169,868$0$0$19,622,265
97$36,256,521$0$0$21,455,401
98$39,648,667$0$0$23,470,216
99$43,377,172$0$0$25,685,071
100$47,476,042$0$0$28,120,200