Can I retire at age 40 with 807,000?

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 $807,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$66,641$66,048$65,469$64,903$64,351$63,181
2 years$32,991$32,376$31,781$31,203$30,643$29,469
3 years$21,775$21,158$20,564$19,992$19,441$18,299
4 years$16,169$15,554$14,966$14,403$13,866$12,764
5 years$12,806$12,194$11,614$11,063$10,541$9,483
6 years$10,564$9,957$9,386$8,847$8,340$7,328
7 years$8,964$8,362$7,800$7,274$6,783$5,816
8 years$7,764$7,168$6,615$6,102$5,627$4,705
9 years$6,832$6,241$5,697$5,197$4,739$3,862
10 years$6,086$5,501$4,967$4,480$4,038$3,204
11 years$5,476$4,897$4,373$3,899$3,473$2,682
12 years$4,969$4,396$3,881$3,420$3,009$2,261
13 years$4,539$3,972$3,467$3,019$2,624$1,916
14 years$4,172$3,611$3,115$2,680$2,300$1,632
15 years$3,854$3,298$2,813$2,390$2,025$1,395
16 years$3,575$3,026$2,550$2,140$1,790$1,196
17 years$3,330$2,787$2,321$1,923$1,587$1,029
18 years$3,112$2,575$2,118$1,733$1,411$886
19 years$2,918$2,387$1,939$1,566$1,258$765
20 years$2,743$2,218$1,780$1,418$1,124$662
21 years$2,585$2,066$1,637$1,287$1,005$574
22 years$2,441$1,929$1,509$1,170$901$497
23 years$2,310$1,804$1,393$1,066$809$432
24 years$2,191$1,690$1,288$972$727$375
25 years$2,081$1,586$1,193$888$654$326
26 years$1,979$1,491$1,107$812$589$284
27 years$1,885$1,403$1,028$743$531$247
28 years$1,799$1,322$955$681$479$215
29 years$1,718$1,247$889$624$433$188
30 years$1,643$1,178$828$573$391$164
31 years$1,572$1,113$772$526$354$143
32 years$1,507$1,053$720$484$320$125
33 years$1,445$998$673$445$290$109
34 years$1,387$945$628$409$262$95
35 years$1,333$897$588$377$237$83
36 years$1,282$851$550$347$215$72
37 years$1,233$808$514$320$195$63
38 years$1,188$768$482$295$177$55
39 years$1,144$731$451$272$160$48
40 years$1,103$695$423$251$145$42
41 years$1,064$662$397$231$132$37
42 years$1,027$630$372$213$120$32
43 years$992$600$349$197$109$28
44 years$959$572$328$182$99$25
45 years$927$546$308$168$90$21
46 years$897$521$289$155$81$19
47 years$868$497$272$143$74$16
48 years$840$474$255$132$67$14
49 years$813$453$240$122$61$12
50 years$788$433$225$113$55$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $807,000, adding $6,007 every year, while hoping to spend $39,700 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: 67/5/28 Blend
39$807,000$807,000$807,000$807,000
40$895,510$852,739$840,231$948,566
41$944,612$852,283$826,138$984,601
42$997,391$850,474$810,243$1,018,982
43$1,054,181$847,203$792,442$1,055,700
44$1,115,349$842,357$772,630$1,094,988
45$1,181,295$835,813$750,693$1,137,105
46$1,252,461$827,442$726,515$1,182,335
47$1,329,332$817,107$699,974$1,230,994
48$1,412,442$804,663$670,941$1,283,431
49$1,502,375$789,956$639,282$1,340,032
50$1,599,776$772,823$604,857$1,401,224
51$1,705,354$753,091$567,520$1,467,477
52$1,819,886$730,578$527,117$1,539,314
53$1,944,228$705,091$483,490$1,617,309
54$2,079,323$676,424$436,471$1,702,100
55$2,226,207$644,361$385,885$1,794,389
56$2,386,018$608,673$331,550$1,894,954
57$2,560,011$569,118$273,277$2,004,652
58$2,749,567$525,439$210,866$2,124,432
59$2,956,202$477,365$144,109$2,255,341
60$3,181,589$424,610$72,792$2,398,535
61$3,427,567$366,872$0$2,555,290
62$3,696,161$303,831$0$2,728,010
63$3,989,599$235,148$0$2,940,530
64$4,310,336$160,468$0$3,172,875
65$4,661,072$79,412$0$3,427,018
66$5,044,782$0$0$3,705,134
67$5,464,741$0$0$4,010,082
68$5,924,556$0$0$4,348,802
69$6,428,199$0$0$4,719,857
70$6,980,042$0$0$5,126,475
71$7,584,902$0$0$5,572,212
72$8,248,084$0$0$6,060,983
73$8,975,431$0$0$6,597,101
74$9,773,377$0$0$7,185,318
75$10,649,011$0$0$7,830,865
76$11,610,141$0$0$8,539,506
77$12,665,366$0$0$9,317,590
78$13,824,160$0$0$10,172,110
79$15,096,959$0$0$11,110,772
80$16,495,260$0$0$12,142,062
81$18,031,728$0$0$13,275,331
82$19,720,315$0$0$14,520,878
83$21,576,392$0$0$15,890,052
84$23,616,894$0$0$17,395,356
85$25,860,478$0$0$19,050,563
86$28,327,700$0$0$20,870,849
87$31,041,206$0$0$22,872,933
88$34,025,948$0$0$25,075,237
89$37,309,418$0$0$27,498,059
90$40,921,906$0$0$30,163,760
91$44,896,785$0$0$33,096,982
92$49,270,829$0$0$36,324,872
93$54,084,555$0$0$39,877,345
94$59,382,605$0$0$43,787,361
95$65,214,172$0$0$48,091,238
96$71,633,457$0$0$52,828,995
97$78,700,183$0$0$58,044,724
98$86,480,158$0$0$63,787,014
99$95,045,897$0$0$70,109,402
100$104,477,301$0$0$77,070,881