Can I retire at age 40 with 795,000?

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 $795,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.1%
1 years$65,650$65,066$64,495$63,938$63,394$62,837
2 years$32,500$31,895$31,308$30,740$30,188$29,626
3 years$21,452$20,844$20,259$19,695$19,152$18,604
4 years$15,928$15,322$14,743$14,189$13,660$13,128
5 years$12,615$12,013$11,441$10,899$10,384$9,872
6 years$10,407$9,809$9,246$8,716$8,216$7,724
7 years$8,831$8,238$7,684$7,166$6,682$6,209
8 years$7,649$7,061$6,516$6,011$5,543$5,090
9 years$6,730$6,148$5,613$5,120$4,668$4,235
10 years$5,996$5,419$4,893$4,414$3,978$3,563
11 years$5,395$4,825$4,308$3,841$3,421$3,026
12 years$4,895$4,330$3,823$3,369$2,965$2,588
13 years$4,472$3,913$3,416$2,975$2,585$2,227
14 years$4,110$3,557$3,069$2,640$2,266$1,926
15 years$3,796$3,249$2,771$2,355$1,995$1,672
16 years$3,522$2,981$2,512$2,108$1,763$1,457
17 years$3,281$2,746$2,286$1,894$1,564$1,273
18 years$3,066$2,537$2,087$1,707$1,390$1,116
19 years$2,874$2,351$1,910$1,543$1,239$980
20 years$2,702$2,185$1,753$1,397$1,107$862
21 years$2,546$2,035$1,613$1,268$990$760
22 years$2,405$1,900$1,486$1,153$888$670
23 years$2,276$1,777$1,372$1,050$797$592
24 years$2,158$1,665$1,269$958$716$524
25 years$2,050$1,562$1,176$875$645$464
26 years$1,950$1,468$1,090$800$581$411
27 years$1,857$1,382$1,012$732$523$365
28 years$1,772$1,302$941$671$472$324
29 years$1,692$1,228$876$615$427$287
30 years$1,618$1,160$816$564$385$255
31 years$1,549$1,097$761$518$348$227
32 years$1,484$1,038$710$476$315$202
33 years$1,424$983$663$438$285$180
34 years$1,367$931$619$403$258$160
35 years$1,313$883$579$371$234$142
36 years$1,263$838$541$342$212$127
37 years$1,215$796$507$315$192$113
38 years$1,170$757$475$290$174$100
39 years$1,127$720$445$268$158$89
40 years$1,087$685$417$247$143$80
41 years$1,049$652$391$228$130$71
42 years$1,012$621$367$210$118$63
43 years$978$591$344$194$107$56
44 years$945$564$323$179$97$50
45 years$913$538$303$165$88$45
46 years$883$513$285$153$80$40
47 years$855$489$268$141$73$36
48 years$827$467$251$130$66$32
49 years$801$446$236$121$60$28
50 years$776$426$222$111$54$25

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $795,000, adding $3,405 every year, while hoping to spend $45,263 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: 50/39/11 Blend
39$795,000$795,000$795,000$795,000
40$879,602$837,467$825,145$920,824
41$921,162$830,344$804,628$942,290
42$965,444$821,354$781,906$960,541
43$1,012,678$810,359$756,859$979,337
44$1,063,116$797,211$729,358$998,742
45$1,117,033$781,754$699,271$1,018,829
46$1,174,733$763,822$666,459$1,039,682
47$1,236,547$743,240$630,776$1,061,395
48$1,302,838$719,823$592,071$1,084,076
49$1,374,006$693,373$550,184$1,107,845
50$1,450,489$663,682$504,949$1,132,842
51$1,532,768$630,532$456,194$1,159,220
52$1,621,370$593,688$403,737$1,187,156
53$1,716,877$552,905$347,388$1,216,847
54$1,819,924$507,923$286,951$1,248,515
55$1,931,211$458,466$222,219$1,282,410
56$2,051,508$404,244$152,977$1,318,811
57$2,181,659$344,950$78,999$1,358,035
58$2,322,594$280,259$52$1,400,433
59$2,475,334$209,827$0$1,446,400
60$2,641,003$133,293$0$1,506,261
61$2,820,835$50,274$0$1,571,276
62$3,016,189$0$0$1,642,021
63$3,228,560$0$0$1,736,156
64$3,459,591$0$0$1,862,106
65$3,711,092$0$0$1,999,293
66$3,985,052$0$0$2,148,811
67$4,283,661$0$0$2,311,866
68$4,609,332$0$0$2,489,785
69$4,964,716$0$0$2,684,028
70$5,352,734$0$0$2,896,202
71$5,776,601$0$0$3,128,079
72$6,239,855$0$0$3,381,605
73$6,746,394$0$0$3,658,926
74$7,300,507$0$0$3,962,405
75$7,906,918$0$0$4,294,642
76$8,570,829$0$0$4,658,501
77$9,297,966$0$0$5,057,137
78$10,094,639$0$0$5,494,024
79$10,967,792$0$0$5,972,985
80$11,925,078$0$0$6,498,236
81$12,974,922$0$0$7,074,417
82$14,126,605$0$0$7,706,639
83$15,390,349$0$0$8,400,533
84$16,777,414$0$0$9,162,300
85$18,300,203$0$0$9,998,772
86$19,972,378$0$0$10,917,474
87$21,808,990$0$0$11,926,698
88$23,826,619$0$0$13,035,574
89$26,043,529$0$0$14,254,166
90$28,479,842$0$0$15,593,556
91$31,157,724$0$0$17,065,955
92$34,101,598$0$0$18,684,819
93$37,338,369$0$0$20,464,967
94$40,897,681$0$0$22,422,731
95$44,812,193$0$0$24,576,102
96$49,117,888$0$0$26,944,905
97$53,854,412$0$0$29,550,979
98$59,065,446$0$0$32,418,390
99$64,799,118$0$0$35,573,654
100$71,108,459$0$0$39,045,985