Can I retire at age 40 with 804,000?

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 $804,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.6%
1 years$66,394$65,802$65,225$64,662$64,112$62,639
2 years$32,868$32,256$31,663$31,088$30,530$29,053
3 years$21,694$21,080$20,488$19,918$19,369$17,936
4 years$16,109$15,496$14,910$14,350$13,814$12,435
5 years$12,758$12,149$11,571$11,022$10,501$9,181
6 years$10,525$9,920$9,351$8,814$8,309$7,048
7 years$8,931$8,331$7,771$7,247$6,758$5,556
8 years$7,736$7,141$6,590$6,079$5,606$4,464
9 years$6,806$6,218$5,676$5,178$4,721$3,637
10 years$6,063$5,481$4,949$4,464$4,023$2,996
11 years$5,456$4,879$4,357$3,885$3,460$2,489
12 years$4,950$4,379$3,866$3,407$2,998$2,081
13 years$4,523$3,958$3,454$3,008$2,614$1,750
14 years$4,156$3,597$3,104$2,670$2,292$1,478
15 years$3,839$3,286$2,802$2,381$2,018$1,253
16 years$3,562$3,015$2,541$2,132$1,783$1,066
17 years$3,318$2,777$2,312$1,916$1,581$908
18 years$3,101$2,566$2,110$1,727$1,406$776
19 years$2,907$2,378$1,932$1,560$1,253$664
20 years$2,733$2,210$1,773$1,413$1,119$569
21 years$2,575$2,058$1,631$1,282$1,002$489
22 years$2,432$1,921$1,503$1,166$898$420
23 years$2,302$1,797$1,388$1,062$806$361
24 years$2,182$1,684$1,284$969$724$311
25 years$2,073$1,580$1,189$884$652$268
26 years$1,972$1,485$1,103$809$587$231
27 years$1,878$1,398$1,024$740$529$199
28 years$1,792$1,317$952$678$478$172
29 years$1,712$1,242$886$622$431$148
30 years$1,637$1,173$825$571$390$128
31 years$1,567$1,109$769$524$352$110
32 years$1,501$1,049$718$482$319$95
33 years$1,440$994$670$443$288$82
34 years$1,382$942$626$408$261$71
35 years$1,328$893$585$375$237$62
36 years$1,277$848$548$346$214$53
37 years$1,229$805$513$318$194$46
38 years$1,183$765$480$293$176$40
39 years$1,140$728$450$271$160$34
40 years$1,099$692$421$250$145$30
41 years$1,060$659$395$230$131$26
42 years$1,024$628$371$213$119$22
43 years$989$598$348$196$108$19
44 years$955$570$327$181$98$17
45 years$924$544$307$167$89$14
46 years$893$519$288$155$81$12
47 years$864$495$271$143$74$11
48 years$837$473$254$132$67$9
49 years$810$451$239$122$61$8
50 years$785$431$225$113$55$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $804,000, adding $5,985 every year, while hoping to spend $41,921 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: 43/29/28 Blend
39$804,000$804,000$804,000$804,000
40$892,182$849,570$837,108$923,042
41$938,580$846,595$820,547$942,757
42$988,307$842,069$802,027$959,679
43$1,041,656$835,873$781,437$977,213
44$1,098,953$827,878$758,662$995,442
45$1,160,551$817,949$733,582$1,014,457
46$1,226,842$805,943$706,072$1,034,363
47$1,298,253$791,708$675,999$1,055,280
48$1,375,257$775,083$643,227$1,077,342
49$1,458,369$755,898$607,611$1,100,700
50$1,548,157$733,972$569,001$1,125,526
51$1,645,247$709,115$527,240$1,152,012
52$1,750,324$681,123$482,164$1,180,374
53$1,864,143$649,784$433,602$1,210,854
54$1,987,533$614,870$381,375$1,243,727
55$2,121,405$576,143$325,296$1,279,296
56$2,266,764$533,350$265,169$1,317,904
57$2,424,712$486,222$200,790$1,359,934
58$2,596,463$434,477$131,947$1,405,812
59$2,783,353$377,817$58,417$1,456,018
60$2,986,849$315,924$0$1,511,082
61$3,208,569$248,466$0$1,577,592
62$3,450,293$175,091$0$1,669,234
63$3,713,977$95,424$0$1,769,350
64$4,001,777$9,075$0$1,878,842
65$4,316,066$0$0$1,998,706
66$4,659,454$0$0$2,156,972
67$5,034,818$0$0$2,333,237
68$5,445,321$0$0$2,526,102
69$5,894,450$0$0$2,737,219
70$6,386,042$0$0$2,968,402
71$6,924,322$0$0$3,221,655
72$7,513,944$0$0$3,499,179
73$8,160,033$0$0$3,803,401
74$8,868,233$0$0$4,136,994
75$9,644,759$0$0$4,502,902
76$10,496,458$0$0$4,904,366
77$11,430,870$0$0$5,344,958
78$12,456,301$0$0$5,828,611
79$13,581,899$0$0$6,359,658
80$14,817,743$0$0$6,942,872
81$16,174,933$0$0$7,583,513
82$17,665,699$0$0$8,287,371
83$19,303,512$0$0$9,060,829
84$21,103,213$0$0$9,910,915
85$23,081,152$0$0$10,845,376
86$25,255,341$0$0$11,872,744
87$27,645,624$0$0$13,002,419
88$30,273,865$0$0$14,244,759
89$33,164,151$0$0$15,611,174
90$36,343,021$0$0$17,114,237
91$39,839,712$0$0$18,767,801
92$43,686,442$0$0$20,587,127
93$47,918,706$0$0$22,589,032
94$52,575,612$0$0$24,792,045
95$57,700,252$0$0$27,216,582
96$63,340,106$0$0$29,885,138
97$69,547,490$0$0$32,822,499
98$76,380,048$0$0$36,055,976
99$83,901,296$0$0$39,615,665
100$92,181,222$0$0$43,534,724