Can I retire at age 40 with 788,000?

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 $788,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.7%
1 years$65,072$64,493$63,927$63,375$62,836$60,391
2 years$32,214$31,614$31,033$30,469$29,922$27,488
3 years$21,263$20,660$20,080$19,522$18,984$16,637
4 years$15,788$15,187$14,613$14,064$13,539$11,299
5 years$12,504$11,907$11,340$10,803$10,292$8,163
6 years$10,316$9,723$9,165$8,639$8,144$6,128
7 years$8,753$8,165$7,616$7,103$6,623$4,719
8 years$7,582$6,999$6,459$5,958$5,495$3,701
9 years$6,671$6,094$5,563$5,075$4,627$2,941
10 years$5,943$5,372$4,850$4,375$3,943$2,361
11 years$5,348$4,782$4,270$3,807$3,391$1,910
12 years$4,852$4,292$3,789$3,340$2,938$1,555
13 years$4,433$3,879$3,386$2,948$2,562$1,271
14 years$4,074$3,526$3,042$2,617$2,246$1,044
15 years$3,763$3,221$2,746$2,334$1,978$860
16 years$3,491$2,955$2,490$2,090$1,748$710
17 years$3,252$2,721$2,266$1,878$1,550$587
18 years$3,039$2,515$2,068$1,692$1,378$487
19 years$2,849$2,331$1,894$1,529$1,228$404
20 years$2,678$2,166$1,738$1,385$1,097$335
21 years$2,524$2,017$1,598$1,257$982$279
22 years$2,384$1,883$1,473$1,143$880$232
23 years$2,256$1,761$1,360$1,041$790$193
24 years$2,139$1,650$1,258$949$710$161
25 years$2,032$1,549$1,165$867$639$134
26 years$1,933$1,455$1,081$793$576$112
27 years$1,841$1,370$1,003$726$519$93
28 years$1,756$1,291$933$665$468$78
29 years$1,677$1,218$868$610$423$65
30 years$1,604$1,150$809$559$382$54
31 years$1,535$1,087$754$514$345$45
32 years$1,471$1,029$703$472$312$38
33 years$1,411$974$657$434$283$32
34 years$1,355$923$614$400$256$26
35 years$1,302$876$574$368$232$22
36 years$1,252$831$537$339$210$18
37 years$1,204$789$502$312$190$15
38 years$1,160$750$470$288$173$13
39 years$1,117$713$441$265$157$11
40 years$1,077$679$413$245$142$9
41 years$1,039$646$387$226$129$7
42 years$1,003$615$363$208$117$6
43 years$969$586$341$192$106$5
44 years$936$559$320$178$96$4
45 years$905$533$300$164$87$4
46 years$875$508$282$151$79$3
47 years$847$485$265$140$72$3
48 years$820$463$249$129$65$2
49 years$794$442$234$119$59$2
50 years$769$422$220$110$54$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $788,000, adding $2,033 every year, while hoping to spend $53,813 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: 74/11/15 Blend
39$788,000$788,000$788,000$788,000
40$870,473$828,709$816,495$931,875
41$902,005$812,059$786,591$956,130
42$934,949$792,790$753,882$975,856
43$969,393$770,716$718,216$996,028
44$1,005,432$745,641$679,437$1,016,676
45$1,043,167$717,359$637,379$1,037,835
46$1,082,709$685,649$591,870$1,059,542
47$1,124,178$650,278$542,731$1,081,841
48$1,167,705$611,003$489,773$1,104,781
49$1,213,430$567,561$432,800$1,128,417
50$1,261,509$519,680$371,607$1,152,811
51$1,312,106$467,068$305,980$1,178,032
52$1,365,406$409,419$235,695$1,204,160
53$1,421,605$346,409$160,518$1,231,282
54$1,480,919$277,693$80,206$1,259,497
55$1,543,585$202,912$0$1,288,917
56$1,609,858$121,682$0$1,320,545
57$1,680,019$33,600$0$1,367,398
58$1,754,374$0$0$1,416,824
59$1,833,258$0$0$1,476,521
60$1,917,035$0$0$1,544,259
61$2,006,107$0$0$1,616,295
62$2,100,910$0$0$1,692,987
63$2,201,924$0$0$1,774,723
64$2,309,674$0$0$1,861,932
65$2,424,732$0$0$1,955,081
66$2,547,731$0$0$2,054,683
67$2,679,359$0$0$2,161,300
68$2,820,373$0$0$2,275,549
69$2,971,604$0$0$2,398,106
70$3,133,962$0$0$2,529,713
71$3,308,448$0$0$2,671,185
72$3,496,158$0$0$2,823,415
73$3,698,297$0$0$2,987,385
74$3,916,189$0$0$3,164,173
75$4,151,286$0$0$3,354,964
76$4,405,187$0$0$3,561,060
77$4,679,645$0$0$3,783,889
78$4,976,589$0$0$4,025,025
79$5,298,139$0$0$4,286,195
80$5,646,627$0$0$4,569,298
81$6,024,615$0$0$4,876,424
82$6,434,922$0$0$5,209,870
83$6,880,648$0$0$5,572,164
84$7,365,202$0$0$5,966,084
85$7,892,337$0$0$6,394,689
86$8,466,181$0$0$6,861,344
87$9,091,274$0$0$7,369,752
88$9,772,615$0$0$7,923,986
89$10,515,705$0$0$8,528,532
90$11,326,599$0$0$9,188,324
91$12,211,959$0$0$9,908,797
92$13,179,123$0$0$10,695,931
93$14,236,166$0$0$11,556,310
94$15,391,980$0$0$12,497,184
95$16,656,355$0$0$13,526,534
96$18,040,069$0$0$14,653,148
97$19,554,992$0$0$15,886,705
98$21,214,194$0$0$17,237,862
99$23,032,070$0$0$18,718,353
100$25,024,470$0$0$20,341,105