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%12.4%
1 years$65,155$64,575$64,008$63,456$62,916$62,285
2 years$32,255$31,654$31,072$30,508$29,960$29,324
3 years$21,290$20,686$20,106$19,546$19,008$18,387
4 years$15,808$15,207$14,632$14,082$13,557$12,956
5 years$12,520$11,922$11,355$10,816$10,305$9,727
6 years$10,329$9,735$9,176$8,650$8,154$7,598
7 years$8,764$8,176$7,626$7,112$6,632$6,098
8 years$7,591$7,008$6,467$5,966$5,502$4,991
9 years$6,679$6,102$5,570$5,082$4,633$4,145
10 years$5,950$5,378$4,856$4,380$3,948$3,481
11 years$5,354$4,788$4,275$3,812$3,395$2,950
12 years$4,858$4,298$3,794$3,344$2,942$2,519
13 years$4,438$3,884$3,390$2,952$2,566$2,163
14 years$4,079$3,530$3,046$2,621$2,249$1,867
15 years$3,768$3,225$2,750$2,337$1,980$1,618
16 years$3,496$2,959$2,493$2,093$1,750$1,407
17 years$3,256$2,725$2,269$1,880$1,552$1,227
18 years$3,043$2,518$2,071$1,694$1,380$1,073
19 years$2,853$2,334$1,896$1,531$1,230$940
20 years$2,682$2,169$1,740$1,387$1,098$825
21 years$2,527$2,020$1,600$1,258$983$726
22 years$2,387$1,885$1,475$1,144$881$639
23 years$2,259$1,763$1,362$1,042$791$563
24 years$2,142$1,652$1,260$950$711$497
25 years$2,034$1,551$1,167$868$640$439
26 years$1,935$1,457$1,082$794$576$388
27 years$1,843$1,371$1,005$726$520$344
28 years$1,759$1,292$934$666$469$304
29 years$1,680$1,219$869$610$423$269
30 years$1,606$1,151$810$560$382$239
31 years$1,537$1,088$755$514$346$212
32 years$1,473$1,030$704$473$313$188
33 years$1,413$975$658$435$283$167
34 years$1,356$924$614$400$256$148
35 years$1,303$877$574$368$232$131
36 years$1,253$832$537$339$210$117
37 years$1,206$790$503$312$191$104
38 years$1,161$751$471$288$173$92
39 years$1,119$714$441$266$157$82
40 years$1,079$680$414$245$142$73
41 years$1,041$647$388$226$129$65
42 years$1,005$616$364$209$117$57
43 years$970$587$341$193$106$51
44 years$937$560$320$178$96$45
45 years$906$534$301$164$88$40
46 years$877$509$283$152$79$36
47 years$848$486$265$140$72$32
48 years$821$464$249$129$66$28
49 years$795$443$234$120$60$25
50 years$770$423$220$111$54$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $789,000, adding $3,516 every year, while hoping to spend $45,960 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: 35/45/20 Blend
39$789,000$789,000$789,000$789,000
40$873,105$831,288$819,058$898,231
41$913,260$823,120$797,596$908,813
42$955,971$813,011$773,874$915,711
43$1,001,450$800,818$747,768$922,203
44$1,049,929$786,389$719,149$928,280
45$1,101,662$769,562$687,880$933,936
46$1,156,927$750,167$653,821$939,168
47$1,216,031$728,023$616,821$943,980
48$1,279,309$702,938$576,727$948,376
49$1,347,126$674,710$533,375$952,371
50$1,419,887$643,125$486,597$955,984
51$1,498,033$607,956$436,216$959,240
52$1,582,050$568,963$382,046$962,177
53$1,672,469$525,892$323,895$964,841
54$1,769,877$478,477$261,562$967,288
55$1,874,915$426,432$194,834$969,589
56$1,988,288$369,460$123,494$971,831
57$2,110,773$307,243$47,310$974,115
58$2,243,222$239,447$0$976,563
59$2,386,570$165,720$0$986,571
60$2,541,848$85,688$0$1,008,300
61$2,710,187$0$0$1,031,892
62$2,892,833$0$0$1,058,148
63$3,091,154$0$0$1,132,826
64$3,306,656$0$0$1,214,073
65$3,540,996$0$0$1,302,527
66$3,795,996$0$0$1,398,888
67$4,073,661$0$0$1,503,929
68$4,376,198$0$0$1,618,498
69$4,706,035$0$0$1,743,530
70$5,065,844$0$0$1,880,054
71$5,458,568$0$0$2,029,201
72$5,887,444$0$0$2,192,219
73$6,356,036$0$0$2,370,480
74$6,868,269$0$0$2,565,496
75$7,428,463$0$0$2,778,929
76$8,041,375$0$0$3,012,613
77$8,712,243$0$0$3,268,565
78$9,446,836$0$0$3,549,008
79$10,251,504$0$0$3,856,387
80$11,133,242$0$0$4,193,398
81$12,099,754$0$0$4,563,010
82$13,159,525$0$0$4,968,492
83$14,321,899$0$0$5,413,445
84$15,597,168$0$0$5,901,835
85$16,996,669$0$0$6,438,032
86$18,532,889$0$0$7,026,848
87$20,219,585$0$0$7,673,586
88$22,071,909$0$0$8,384,087
89$24,106,552$0$0$9,164,784
90$26,341,903$0$0$10,022,766
91$28,798,220$0$0$10,965,842
92$31,497,818$0$0$12,002,615
93$34,465,283$0$0$13,142,565
94$37,727,703$0$0$14,396,133
95$41,314,918$0$0$15,774,826
96$45,259,808$0$0$17,291,319
97$49,598,596$0$0$18,959,580
98$54,371,193$0$0$20,794,996
99$59,621,570$0$0$22,814,524
100$65,398,179$0$0$25,036,844