Can I retire at age 40 with 789,000?

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 $789,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$65,155$64,575$64,008$63,456$62,916$61,721
2 years$32,255$31,654$31,072$30,508$29,960$28,761
3 years$21,290$20,686$20,106$19,546$19,008$17,842
4 years$15,808$15,207$14,632$14,082$13,557$12,433
5 years$12,520$11,922$11,355$10,816$10,305$9,227
6 years$10,329$9,735$9,176$8,650$8,154$7,122
7 years$8,764$8,176$7,626$7,112$6,632$5,646
8 years$7,591$7,008$6,467$5,966$5,502$4,563
9 years$6,679$6,102$5,570$5,082$4,633$3,740
10 years$5,950$5,378$4,856$4,380$3,948$3,100
11 years$5,354$4,788$4,275$3,812$3,395$2,591
12 years$4,858$4,298$3,794$3,344$2,942$2,181
13 years$4,438$3,884$3,390$2,952$2,566$1,846
14 years$4,079$3,530$3,046$2,621$2,249$1,570
15 years$3,768$3,225$2,750$2,337$1,980$1,340
16 years$3,496$2,959$2,493$2,093$1,750$1,148
17 years$3,256$2,725$2,269$1,880$1,552$986
18 years$3,043$2,518$2,071$1,694$1,380$848
19 years$2,853$2,334$1,896$1,531$1,230$731
20 years$2,682$2,169$1,740$1,387$1,098$632
21 years$2,527$2,020$1,600$1,258$983$546
22 years$2,387$1,885$1,475$1,144$881$473
23 years$2,259$1,763$1,362$1,042$791$410
24 years$2,142$1,652$1,260$950$711$356
25 years$2,034$1,551$1,167$868$640$309
26 years$1,935$1,457$1,082$794$576$268
27 years$1,843$1,371$1,005$726$520$233
28 years$1,759$1,292$934$666$469$203
29 years$1,680$1,219$869$610$423$177
30 years$1,606$1,151$810$560$382$154
31 years$1,537$1,088$755$514$346$134
32 years$1,473$1,030$704$473$313$117
33 years$1,413$975$658$435$283$102
34 years$1,356$924$614$400$256$88
35 years$1,303$877$574$368$232$77
36 years$1,253$832$537$339$210$67
37 years$1,206$790$503$312$191$59
38 years$1,161$751$471$288$173$51
39 years$1,119$714$441$266$157$45
40 years$1,079$680$414$245$142$39
41 years$1,041$647$388$226$129$34
42 years$1,005$616$364$209$117$30
43 years$970$587$341$193$106$26
44 years$937$560$320$178$96$22
45 years$906$534$301$164$88$20
46 years$877$509$283$152$79$17
47 years$848$486$265$140$72$15
48 years$821$464$249$129$66$13
49 years$795$443$234$120$60$11
50 years$770$423$220$111$54$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $789,000, adding $6,477 every year, while hoping to spend $27,077 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: 54/17/29 Blend
39$789,000$789,000$789,000$789,000
40$876,159$834,342$822,113$916,084
41$936,718$846,415$820,844$956,489
42$1,002,545$858,172$818,625$997,160
43$1,074,152$869,569$815,395$1,040,904
44$1,152,096$880,559$811,092$1,088,028
45$1,236,995$891,092$805,649$1,138,870
46$1,329,527$901,113$798,996$1,193,801
47$1,430,436$910,566$791,060$1,253,235
48$1,540,546$919,388$781,766$1,317,627
49$1,660,759$927,516$771,032$1,387,478
50$1,792,070$934,878$758,776$1,463,344
51$1,935,576$941,402$744,909$1,545,836
52$2,092,482$947,008$729,341$1,635,632
53$2,264,116$951,612$711,975$1,733,477
54$2,451,940$955,124$692,710$1,840,196
55$2,657,563$957,451$671,441$1,956,698
56$2,882,760$958,491$648,059$2,083,988
57$3,129,481$958,137$622,449$2,223,174
58$3,399,877$956,275$594,490$2,375,478
59$3,696,316$952,784$564,057$2,542,252
60$4,021,406$947,536$531,019$2,724,985
61$4,378,019$940,395$495,238$2,925,320
62$4,769,320$931,217$456,571$3,145,072
63$5,198,792$919,848$414,867$3,386,244
64$5,670,275$906,127$369,972$3,651,042
65$6,187,997$889,882$321,720$3,941,905
66$6,756,617$870,930$269,942$4,261,520
67$7,381,265$849,079$214,458$4,612,854
68$8,067,595$824,124$155,083$4,999,178
69$8,821,833$795,850$91,622$5,424,102
70$9,650,842$764,029$23,873$5,891,606
71$10,562,179$728,417$0$6,406,082
72$11,564,170$688,759$0$6,987,359
73$12,665,992$644,784$0$7,634,651
74$13,877,751$596,206$0$8,346,527
75$15,210,584$542,723$0$9,129,560
76$16,676,761$484,014$0$9,990,992
77$18,289,801$419,741$0$10,938,809
78$20,064,599$349,547$0$11,981,811
79$22,017,568$273,054$0$13,129,695
80$24,166,791$189,865$0$14,393,151
81$26,532,192$99,557$0$15,783,960
82$29,135,727$1,686$0$17,315,107
83$32,001,585$0$0$19,000,903
84$35,156,423$0$0$20,876,617
85$38,629,610$0$0$22,942,047
86$42,453,511$0$0$25,216,135
87$46,663,785$0$0$27,720,101
88$51,299,727$0$0$30,477,327
89$56,404,637$0$0$33,513,578
90$62,026,226$0$0$36,857,246
91$68,217,070$0$0$40,539,613
92$75,035,101$0$0$44,595,154
93$82,544,158$0$0$49,061,857
94$90,814,585$0$0$53,981,580
95$99,923,901$0$0$59,400,450
96$109,957,523$0$0$65,369,296
97$121,009,578$0$0$71,944,130
98$133,183,789$0$0$79,186,672
99$146,594,453$0$0$87,164,938
100$161,367,521$0$0$95,953,875