Can I retire at age 40 with 785,000?

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 $785,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.5%
1 years$64,825$64,247$63,684$63,134$62,597$61,687
2 years$32,091$31,494$30,914$30,353$29,808$28,893
3 years$21,182$20,581$20,004$19,447$18,911$18,020
4 years$15,728$15,130$14,558$14,011$13,488$12,627
5 years$12,457$11,862$11,297$10,762$10,253$9,425
6 years$10,276$9,686$9,130$8,606$8,113$7,319
7 years$8,720$8,134$7,587$7,076$6,598$5,838
8 years$7,553$6,973$6,434$5,936$5,474$4,748
9 years$6,646$6,071$5,542$5,056$4,610$3,917
10 years$5,920$5,351$4,832$4,358$3,928$3,269
11 years$5,327$4,764$4,254$3,793$3,378$2,751
12 years$4,833$4,276$3,775$3,327$2,927$2,332
13 years$4,416$3,864$3,373$2,937$2,553$1,989
14 years$4,058$3,512$3,030$2,607$2,238$1,704
15 years$3,749$3,209$2,736$2,325$1,970$1,466
16 years$3,478$2,944$2,481$2,082$1,741$1,265
17 years$3,239$2,711$2,257$1,871$1,544$1,095
18 years$3,027$2,505$2,061$1,686$1,373$949
19 years$2,838$2,322$1,886$1,523$1,224$825
20 years$2,668$2,158$1,731$1,380$1,093$719
21 years$2,514$2,010$1,592$1,252$978$627
22 years$2,375$1,876$1,468$1,138$877$547
23 years$2,247$1,755$1,355$1,037$787$479
24 years$2,131$1,644$1,253$946$707$419
25 years$2,024$1,543$1,161$864$636$367
26 years$1,925$1,450$1,077$790$573$321
27 years$1,834$1,365$1,000$723$517$282
28 years$1,750$1,286$929$662$466$247
29 years$1,671$1,213$865$607$421$217
30 years$1,598$1,146$806$557$381$191
31 years$1,530$1,083$751$512$344$168
32 years$1,466$1,025$701$470$311$147
33 years$1,406$970$654$433$282$130
34 years$1,350$920$611$398$255$114
35 years$1,297$872$571$366$231$100
36 years$1,247$828$535$337$209$88
37 years$1,200$786$500$311$190$78
38 years$1,155$747$469$287$172$68
39 years$1,113$711$439$264$156$60
40 years$1,073$676$411$244$141$53
41 years$1,035$644$386$225$128$47
42 years$999$613$362$208$116$41
43 years$965$584$340$192$106$36
44 years$933$557$319$177$96$32
45 years$902$531$299$163$87$28
46 years$872$506$281$151$79$25
47 years$844$483$264$139$72$22
48 years$817$461$248$129$65$19
49 years$791$441$233$119$59$17
50 years$766$421$219$110$54$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $785,000, adding $4,108 every year, while hoping to spend $51,284 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: 56/35/9 Blend
39$785,000$785,000$785,000$785,000
40$869,307$827,702$815,535$915,887
41$903,411$813,694$788,290$933,801
42$939,274$797,280$758,413$947,260
43$977,023$778,290$725,762$960,683
44$1,016,793$756,539$690,189$974,073
45$1,058,733$731,837$651,537$987,436
46$1,103,005$703,978$609,645$1,000,783
47$1,149,785$672,748$564,342$1,014,127
48$1,199,267$637,916$515,452$1,027,487
49$1,251,661$599,242$462,787$1,040,888
50$1,307,196$556,471$406,156$1,054,358
51$1,366,123$509,331$345,356$1,067,936
52$1,428,717$457,537$280,174$1,081,667
53$1,495,278$400,788$210,392$1,095,603
54$1,566,134$338,765$135,778$1,109,811
55$1,641,645$271,130$56,092$1,124,365
56$1,722,205$197,528$0$1,139,355
57$1,808,246$117,582$0$1,157,665
58$1,900,239$30,895$0$1,182,564
59$1,998,703$0$0$1,208,827
60$2,104,207$0$0$1,260,887
61$2,217,373$0$0$1,329,538
62$2,338,887$0$0$1,403,302
63$2,469,498$0$0$1,482,643
64$2,610,032$0$0$1,568,067
65$2,761,391$0$0$1,660,131
66$2,924,572$0$0$1,759,447
67$3,100,664$0$0$1,866,689
68$3,290,868$0$0$1,982,593
69$3,496,502$0$0$2,107,974
70$3,719,015$0$0$2,243,722
71$3,959,998$0$0$2,390,821
72$4,221,204$0$0$2,550,347
73$4,504,558$0$0$2,723,489
74$4,812,176$0$0$2,911,551
75$5,146,388$0$0$3,115,969
76$5,509,756$0$0$3,338,321
77$5,905,098$0$0$3,580,346
78$6,335,516$0$0$3,843,956
79$6,804,421$0$0$4,131,253
80$7,315,569$0$0$4,444,554
81$7,873,093$0$0$4,786,407
82$8,481,541$0$0$5,159,618
83$9,145,921$0$0$5,567,273
84$9,871,745$0$0$6,012,772
85$10,665,080$0$0$6,499,857
86$11,532,607$0$0$7,032,650
87$12,481,683$0$0$7,615,686
88$13,520,405$0$0$8,253,962
89$14,657,694$0$0$8,952,978
90$15,903,369$0$0$9,718,793
91$17,268,247$0$0$10,558,079
92$18,764,238$0$0$11,478,182
93$20,404,462$0$0$12,487,196
94$22,203,366$0$0$13,594,035
95$24,176,864$0$0$14,808,514
96$26,342,485$0$0$16,141,449
97$28,719,535$0$0$17,604,752
98$31,329,284$0$0$19,211,542
99$34,195,158$0$0$20,976,275
100$37,342,965$0$0$22,914,874