Can I retire at age 40 with 806,000?

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 $806,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.6%
1 years$66,559$65,966$65,387$64,823$64,272$63,840
2 years$32,950$32,336$31,741$31,165$30,606$30,170
3 years$21,748$21,132$20,539$19,968$19,417$18,992
4 years$16,149$15,534$14,947$14,386$13,849$13,436
5 years$12,790$12,179$11,599$11,049$10,528$10,129
6 years$10,551$9,945$9,374$8,836$8,330$7,947
7 years$8,953$8,352$7,790$7,265$6,775$6,406
8 years$7,755$7,159$6,606$6,094$5,620$5,267
9 years$6,823$6,233$5,690$5,191$4,733$4,394
10 years$6,079$5,494$4,961$4,475$4,033$3,709
11 years$5,470$4,891$4,367$3,894$3,468$3,159
12 years$4,963$4,390$3,876$3,416$3,006$2,710
13 years$4,534$3,967$3,463$3,016$2,621$2,340
14 years$4,167$3,606$3,111$2,677$2,297$2,030
15 years$3,849$3,294$2,809$2,387$2,023$1,768
16 years$3,571$3,023$2,547$2,138$1,788$1,546
17 years$3,326$2,784$2,318$1,921$1,585$1,356
18 years$3,108$2,572$2,116$1,731$1,409$1,192
19 years$2,914$2,384$1,937$1,564$1,256$1,051
20 years$2,739$2,215$1,778$1,417$1,122$928
21 years$2,581$2,063$1,635$1,286$1,004$821
22 years$2,438$1,926$1,507$1,169$900$727
23 years$2,307$1,801$1,391$1,065$808$645
24 years$2,188$1,688$1,287$971$726$573
25 years$2,078$1,584$1,192$887$654$509
26 years$1,977$1,489$1,105$811$589$453
27 years$1,883$1,401$1,026$742$531$403
28 years$1,796$1,320$954$680$479$359
29 years$1,716$1,245$888$624$432$320
30 years$1,641$1,176$827$572$391$286
31 years$1,571$1,112$771$526$353$255
32 years$1,505$1,052$719$483$320$228
33 years$1,443$996$672$444$289$203
34 years$1,386$944$628$409$262$182
35 years$1,331$896$587$376$237$162
36 years$1,280$850$549$346$215$145
37 years$1,232$807$514$319$195$130
38 years$1,186$767$481$294$177$116
39 years$1,143$730$451$271$160$104
40 years$1,102$694$423$250$145$93
41 years$1,063$661$396$231$132$83
42 years$1,026$629$372$213$120$74
43 years$991$600$349$197$108$67
44 years$958$572$327$182$98$60
45 years$926$545$307$168$89$53
46 years$895$520$289$155$81$48
47 years$866$496$271$143$74$43
48 years$839$474$255$132$67$38
49 years$812$452$240$122$61$34
50 years$787$432$225$113$55$31

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $806,000, adding $4,505 every year, while hoping to spend $39,975 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: 83/7/10 Blend
39$806,000$806,000$806,000$806,000
40$892,859$850,141$837,648$965,234
41$941,397$849,265$823,176$1,012,385
42$993,547$847,006$806,880$1,058,356
43$1,049,634$843,254$788,655$1,107,624
44$1,110,016$837,893$768,395$1,160,496
45$1,175,087$830,799$745,985$1,217,311
46$1,245,278$821,841$721,308$1,278,443
47$1,321,065$810,879$694,240$1,344,302
48$1,402,967$797,766$664,651$1,415,342
49$1,491,559$782,346$632,406$1,492,061
50$1,587,471$764,453$597,364$1,575,009
51$1,691,394$743,913$559,377$1,664,791
52$1,804,090$720,539$518,290$1,762,074
53$1,926,397$694,135$473,942$1,867,594
54$2,059,236$664,493$426,165$1,982,159
55$2,203,618$631,394$374,783$2,106,662
56$2,360,660$594,605$319,610$2,242,088
57$2,531,586$553,879$260,456$2,389,518
58$2,717,746$508,958$197,120$2,550,148
59$2,920,625$459,565$129,392$2,725,294
60$3,141,856$405,411$57,054$2,916,407
61$3,383,237$346,188$0$3,125,084
62$3,646,748$281,572$0$3,355,238
63$3,934,567$211,219$0$3,613,298
64$4,249,093$134,769$0$3,895,337
65$4,592,966$51,839$0$4,203,742
66$4,969,094$0$0$4,541,143
67$5,380,678$0$0$4,913,361
68$5,831,243$0$0$5,325,219
69$6,324,670$0$0$5,776,272
70$6,865,233$0$0$6,270,432
71$7,457,641$0$0$6,812,003
72$8,107,078$0$0$7,405,726
73$8,819,252$0$0$8,056,825
74$9,600,454$0$0$8,771,050
75$10,457,610$0$0$9,554,739
76$11,398,350$0$0$10,414,868
77$12,431,079$0$0$11,359,125
78$13,565,054$0$0$12,395,977
79$14,810,474$0$0$13,534,753
80$16,178,573$0$0$14,785,726
81$17,681,726$0$0$16,160,218
82$19,333,570$0$0$17,670,697
83$21,149,122$0$0$19,330,903
84$23,144,933$0$0$21,155,970
85$25,339,232$0$0$23,162,574
86$27,752,105$0$0$25,369,085
87$30,405,681$0$0$27,795,744
88$33,324,343$0$0$30,464,851
89$36,534,953$0$0$33,400,976
90$40,067,108$0$0$36,631,190
91$43,953,418$0$0$40,185,320
92$48,229,816$0$0$44,096,231
93$52,935,890$0$0$48,400,133
94$58,115,263$0$0$53,136,924
95$63,815,999$0$0$58,350,568
96$70,091,059$0$0$64,089,504
97$76,998,799$0$0$70,407,108
98$84,603,519$0$0$77,362,192
99$92,976,073$0$0$85,019,562
100$102,194,531$0$0$93,450,626