Can I retire at age 40 with 796,000?

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 $796,000?

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$65,733$65,147$64,576$64,019$63,474$62,269
2 years$32,541$31,935$31,348$30,778$30,226$29,016
3 years$21,479$20,870$20,284$19,720$19,176$18,000
4 years$15,948$15,342$14,762$14,207$13,677$12,543
5 years$12,631$12,028$11,456$10,912$10,397$9,309
6 years$10,420$9,822$9,258$8,727$8,227$7,186
7 years$8,842$8,248$7,693$7,175$6,691$5,697
8 years$7,659$7,070$6,525$6,019$5,550$4,603
9 years$6,739$6,156$5,620$5,127$4,674$3,773
10 years$6,003$5,426$4,899$4,419$3,983$3,127
11 years$5,402$4,831$4,313$3,846$3,425$2,614
12 years$4,901$4,336$3,828$3,373$2,968$2,201
13 years$4,478$3,918$3,420$2,978$2,588$1,863
14 years$4,115$3,562$3,073$2,644$2,269$1,584
15 years$3,801$3,254$2,774$2,358$1,998$1,352
16 years$3,527$2,985$2,515$2,111$1,766$1,158
17 years$3,285$2,749$2,289$1,897$1,566$994
18 years$3,070$2,540$2,089$1,709$1,392$856
19 years$2,878$2,354$1,913$1,545$1,241$738
20 years$2,705$2,188$1,755$1,399$1,108$637
21 years$2,549$2,038$1,615$1,270$992$551
22 years$2,408$1,902$1,488$1,154$889$477
23 years$2,279$1,779$1,374$1,051$798$414
24 years$2,161$1,667$1,271$959$717$359
25 years$2,052$1,564$1,177$876$645$312
26 years$1,952$1,470$1,092$801$581$271
27 years$1,860$1,384$1,014$733$524$235
28 years$1,774$1,304$942$671$473$205
29 years$1,694$1,230$877$616$427$178
30 years$1,620$1,162$817$565$386$155
31 years$1,551$1,098$761$519$349$135
32 years$1,486$1,039$710$477$316$118
33 years$1,426$984$663$439$286$102
34 years$1,368$933$620$404$259$89
35 years$1,315$885$579$372$234$78
36 years$1,264$840$542$342$212$68
37 years$1,217$797$507$315$192$59
38 years$1,171$758$475$291$174$52
39 years$1,129$721$445$268$158$45
40 years$1,088$686$417$247$143$39
41 years$1,050$653$391$228$130$34
42 years$1,013$622$367$210$118$30
43 years$979$592$344$194$107$26
44 years$946$564$323$179$97$23
45 years$914$538$304$166$88$20
46 years$884$513$285$153$80$17
47 years$856$490$268$141$73$15
48 years$828$468$252$131$66$13
49 years$802$447$237$121$60$11
50 years$777$427$222$112$55$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $796,000, adding $2,445 every year, while hoping to spend $53,744 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: 39/36/25 Blend
39$796,000$796,000$796,000$796,000
40$879,714$837,526$825,188$907,409
41$912,262$821,382$795,649$911,596
42$946,328$802,645$763,318$910,927
43$982,011$781,132$728,047$909,148
44$1,019,417$756,648$689,678$906,190
45$1,058,662$728,988$648,046$901,985
46$1,099,870$697,934$602,980$896,458
47$1,143,178$663,254$554,302$889,536
48$1,188,734$624,705$501,823$881,141
49$1,236,699$582,029$445,347$871,194
50$1,287,247$534,954$384,672$859,616
51$1,340,570$483,191$319,582$846,325
52$1,396,876$426,435$249,856$831,237
53$1,456,392$364,364$175,260$814,268
54$1,519,365$296,639$95,552$795,334
55$1,586,065$222,899$10,478$774,350
56$1,656,788$142,766$0$751,231
57$1,731,856$55,837$0$747,316
58$1,811,623$0$0$745,475
59$1,896,474$0$0$758,082
60$1,986,833$0$0$795,121
61$2,083,160$0$0$834,669
62$2,185,964$0$0$876,943
63$2,295,799$0$0$922,177
64$2,413,273$0$0$970,633
65$2,539,053$0$0$1,022,595
66$2,673,872$0$0$1,078,375
67$2,818,530$0$0$1,138,316
68$2,973,910$0$0$1,202,795
69$3,140,977$0$0$1,272,224
70$3,320,792$0$0$1,347,057
71$3,514,520$0$0$1,427,793
72$3,723,441$0$0$1,514,979
73$3,948,961$0$0$1,609,216
74$4,192,625$0$0$1,711,167
75$4,456,130$0$0$1,821,558
76$4,741,341$0$0$1,941,188
77$5,050,311$0$0$2,070,936
78$5,385,295$0$0$2,211,768
79$5,748,772$0$0$2,364,747
80$6,143,471$0$0$2,531,043
81$6,572,390$0$0$2,711,941
82$7,038,832$0$0$2,908,857
83$7,546,427$0$0$3,123,348
84$8,099,169$0$0$3,357,127
85$8,701,456$0$0$3,612,081
86$9,358,126$0$0$3,890,284
87$10,074,504$0$0$4,194,022
88$10,856,450$0$0$4,525,809
89$11,710,417$0$0$4,888,414
90$12,643,506$0$0$5,284,886
91$13,663,537$0$0$5,718,580
92$14,779,119$0$0$6,193,192
93$15,999,730$0$0$6,712,791
94$17,335,808$0$0$7,281,858
95$18,798,844$0$0$7,905,327
96$20,401,496$0$0$8,588,633
97$22,157,702$0$0$9,337,760
98$24,082,811$0$0$10,159,300
99$26,193,729$0$0$11,060,513
100$28,509,076$0$0$12,049,397