Can I retire at age 40 with 794,000?

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 $794,000?

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$65,568$64,984$64,414$63,858$63,315$60,851
2 years$32,459$31,855$31,269$30,701$30,150$27,697
3 years$21,425$20,817$20,233$19,670$19,128$16,764
4 years$15,908$15,303$14,724$14,171$13,642$11,385
5 years$12,599$11,998$11,427$10,885$10,371$8,225
6 years$10,394$9,797$9,235$8,705$8,206$6,174
7 years$8,820$8,228$7,674$7,157$6,674$4,755
8 years$7,639$7,053$6,508$6,004$5,536$3,729
9 years$6,722$6,141$5,605$5,114$4,663$2,964
10 years$5,988$5,413$4,887$4,408$3,973$2,379
11 years$5,388$4,818$4,302$3,836$3,417$1,925
12 years$4,889$4,325$3,818$3,365$2,961$1,567
13 years$4,466$3,908$3,411$2,971$2,582$1,281
14 years$4,105$3,553$3,065$2,637$2,263$1,052
15 years$3,791$3,245$2,767$2,352$1,993$866
16 years$3,518$2,978$2,509$2,106$1,761$715
17 years$3,276$2,742$2,283$1,892$1,562$592
18 years$3,062$2,534$2,084$1,705$1,389$490
19 years$2,871$2,348$1,908$1,541$1,238$407
20 years$2,699$2,182$1,751$1,395$1,105$338
21 years$2,543$2,033$1,611$1,266$989$281
22 years$2,402$1,897$1,484$1,151$887$234
23 years$2,273$1,775$1,371$1,049$796$195
24 years$2,155$1,663$1,268$956$715$162
25 years$2,047$1,560$1,174$873$644$135
26 years$1,947$1,467$1,089$799$580$113
27 years$1,855$1,380$1,011$731$523$94
28 years$1,770$1,301$940$670$472$79
29 years$1,690$1,227$875$614$426$66
30 years$1,616$1,159$815$564$385$55
31 years$1,547$1,095$760$518$348$46
32 years$1,483$1,036$709$476$315$38
33 years$1,422$981$662$438$285$32
34 years$1,365$930$618$403$258$27
35 years$1,312$882$578$371$234$22
36 years$1,261$837$541$341$212$19
37 years$1,213$795$506$314$192$15
38 years$1,168$756$474$290$174$13
39 years$1,126$719$444$267$158$11
40 years$1,086$684$416$247$143$9
41 years$1,047$651$390$227$130$8
42 years$1,011$620$366$210$118$6
43 years$976$591$344$194$107$5
44 years$943$563$322$179$97$4
45 years$912$537$303$165$88$4
46 years$882$512$284$153$80$3
47 years$854$489$267$141$73$3
48 years$826$467$251$130$66$2
49 years$800$446$236$120$60$2
50 years$775$426$222$111$54$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $794,000, adding $6,747 every year, while hoping to spend $51,531 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: 55/33/12 Blend
39$794,000$794,000$794,000$794,000
40$881,948$839,866$827,559$927,388
41$917,078$826,190$800,453$945,298
42$954,064$810,118$770,713$958,595
43$993,041$791,477$738,194$971,869
44$1,034,157$770,084$702,749$985,128
45$1,077,570$745,748$664,221$998,383
46$1,123,457$718,264$622,447$1,011,649
47$1,172,007$687,417$577,256$1,024,946
48$1,223,429$652,977$528,472$1,038,300
49$1,277,950$614,705$475,907$1,051,741
50$1,335,819$572,343$419,368$1,065,308
51$1,397,308$525,623$358,652$1,079,047
52$1,462,713$474,258$293,546$1,093,013
53$1,532,360$417,947$223,830$1,107,272
54$1,606,605$356,371$149,273$1,121,901
55$1,685,839$289,193$69,634$1,136,990
56$1,770,488$216,058$0$1,152,644
57$1,861,022$136,588$0$1,170,949
58$1,957,952$50,388$0$1,199,724
59$2,061,844$0$0$1,230,238
60$2,173,315$0$0$1,278,314
61$2,293,042$0$0$1,349,654
62$2,421,770$0$0$1,426,411
63$2,560,315$0$0$1,509,079
64$2,709,575$0$0$1,598,199
65$2,870,535$0$0$1,694,369
66$3,044,277$0$0$1,798,242
67$3,231,991$0$0$1,910,538
68$3,434,983$0$0$2,032,048
69$3,654,691$0$0$2,163,641
70$3,892,693$0$0$2,306,272
71$4,150,725$0$0$2,460,994
72$4,430,698$0$0$2,628,960
73$4,734,710$0$0$2,811,443
74$5,065,073$0$0$3,009,840
75$5,424,326$0$0$3,225,690
76$5,815,266$0$0$3,460,686
77$6,240,967$0$0$3,716,690
78$6,704,816$0$0$3,995,750
79$7,210,535$0$0$4,300,124
80$7,762,226$0$0$4,632,293
81$8,364,401$0$0$4,994,990
82$9,022,025$0$0$5,391,224
83$9,740,567$0$0$5,824,307
84$10,526,047$0$0$6,297,883
85$11,385,093$0$0$6,815,969
86$12,325,000$0$0$7,382,984
87$13,353,805$0$0$8,003,796
88$14,480,355$0$0$8,683,765
89$15,714,394$0$0$9,428,793
90$17,066,651$0$0$10,245,382
91$18,548,945$0$0$11,140,691
92$20,174,290$0$0$12,122,604
93$21,957,020$0$0$13,199,809
94$23,912,925$0$0$14,381,870
95$26,059,395$0$0$15,679,326
96$28,415,587$0$0$17,103,782
97$31,002,602$0$0$18,668,026
98$33,843,684$0$0$20,386,143
99$36,964,439$0$0$22,273,647
100$40,393,075$0$0$24,347,633