Can I retire at age 40 with 787,000?

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 $787,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.3%
1 years$64,990$64,411$63,846$63,295$62,756$60,410
2 years$32,173$31,574$30,993$30,430$29,884$27,547
3 years$21,236$20,634$20,055$19,497$18,960$16,705
4 years$15,768$15,168$14,595$14,046$13,522$11,368
5 years$12,488$11,892$11,326$10,789$10,279$8,230
6 years$10,303$9,711$9,153$8,628$8,134$6,192
7 years$8,742$8,155$7,606$7,094$6,615$4,779
8 years$7,572$6,990$6,451$5,951$5,488$3,757
9 years$6,662$6,086$5,556$5,069$4,621$2,993
10 years$5,935$5,365$4,844$4,369$3,938$2,409
11 years$5,341$4,776$4,264$3,803$3,387$1,954
12 years$4,846$4,287$3,785$3,335$2,935$1,595
13 years$4,427$3,874$3,381$2,945$2,559$1,308
14 years$4,068$3,521$3,038$2,614$2,243$1,077
15 years$3,758$3,217$2,743$2,331$1,975$889
16 years$3,487$2,951$2,487$2,087$1,746$736
17 years$3,248$2,718$2,263$1,875$1,548$611
18 years$3,035$2,512$2,066$1,690$1,376$508
19 years$2,845$2,328$1,891$1,527$1,227$423
20 years$2,675$2,163$1,736$1,383$1,096$352
21 years$2,521$2,015$1,596$1,255$981$294
22 years$2,381$1,881$1,471$1,141$879$245
23 years$2,253$1,759$1,359$1,039$789$205
24 years$2,136$1,648$1,256$948$709$171
25 years$2,029$1,547$1,164$866$638$143
26 years$1,930$1,454$1,079$792$575$120
27 years$1,839$1,368$1,002$725$518$100
28 years$1,754$1,289$932$664$468$84
29 years$1,675$1,216$867$609$422$70
30 years$1,602$1,148$808$559$382$59
31 years$1,534$1,086$753$513$345$49
32 years$1,469$1,027$702$472$312$41
33 years$1,409$973$656$434$282$35
34 years$1,353$922$613$399$256$29
35 years$1,300$875$573$367$232$24
36 years$1,250$830$536$338$210$20
37 years$1,203$788$502$312$190$17
38 years$1,158$749$470$287$172$14
39 years$1,116$712$440$265$156$12
40 years$1,076$678$413$244$142$10
41 years$1,038$645$387$225$129$8
42 years$1,002$614$363$208$117$7
43 years$968$585$340$192$106$6
44 years$935$558$320$177$96$5
45 years$904$532$300$164$87$4
46 years$874$508$282$151$79$3
47 years$846$484$265$140$72$3
48 years$819$463$249$129$65$2
49 years$793$442$234$119$59$2
50 years$768$422$220$110$54$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $787,000, adding $4,920 every year, while hoping to spend $41,325 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: 73/13/14 Blend
39$787,000$787,000$787,000$787,000
40$872,349$830,638$818,439$933,030
41$917,359$827,370$801,888$970,593
42$965,575$822,556$783,396$1,006,167
43$1,017,281$816,078$762,857$1,044,029
44$1,072,786$807,809$740,156$1,084,395
45$1,132,434$797,615$715,174$1,127,504
46$1,196,597$785,353$687,788$1,173,620
47$1,265,688$770,873$657,866$1,223,035
48$1,340,157$754,016$625,274$1,276,071
49$1,420,502$734,611$589,869$1,333,083
50$1,507,266$712,480$551,503$1,394,465
51$1,601,050$687,434$510,021$1,460,649
52$1,702,511$659,272$465,261$1,532,115
53$1,812,373$627,782$417,053$1,609,391
54$1,931,431$592,740$365,220$1,693,062
55$2,060,560$553,907$309,578$1,783,772
56$2,200,723$511,034$249,934$1,882,234
57$2,352,976$463,855$186,087$1,989,232
58$2,518,484$412,088$117,826$2,105,635
59$2,698,528$355,439$44,931$2,232,402
60$2,894,516$293,593$0$2,370,588
61$3,107,997$226,220$0$2,526,271
62$3,340,678$152,970$0$2,703,313
63$3,594,437$73,475$0$2,896,453
64$3,871,338$0$0$3,107,301
65$4,173,656$0$0$3,339,441
66$4,503,896$0$0$3,604,535
67$4,864,813$0$0$3,894,290
68$5,259,441$0$0$4,211,146
69$5,691,121$0$0$4,557,790
70$6,163,532$0$0$4,937,180
71$6,680,724$0$0$5,352,575
72$7,247,158$0$0$5,807,562
73$7,867,746$0$0$6,306,091
74$8,547,897$0$0$6,852,515
75$9,293,569$0$0$7,451,625
76$10,111,324$0$0$8,108,698
77$11,008,389$0$0$8,829,549
78$11,992,724$0$0$9,620,581
79$13,073,099$0$0$10,488,846
80$14,259,170$0$0$11,442,113
81$15,561,579$0$0$12,488,940
82$16,992,044$0$0$13,638,756
83$18,563,477$0$0$14,901,945
84$20,290,101$0$0$16,289,949
85$22,187,585$0$0$17,815,371
86$24,273,190$0$0$19,492,097
87$26,565,936$0$0$21,335,425
88$29,086,773$0$0$23,362,210
89$31,858,785$0$0$25,591,020
90$34,907,406$0$0$28,042,313
91$38,260,654$0$0$30,738,629
92$41,949,404$0$0$33,704,804
93$46,007,671$0$0$36,968,200
94$50,472,933$0$0$40,558,966
95$55,386,485$0$0$44,510,321
96$60,793,826$0$0$48,858,865
97$66,745,091$0$0$53,644,928
98$73,295,519$0$0$58,912,947
99$80,505,977$0$0$64,711,886
100$88,443,532$0$0$71,095,696