Can I retire at age 40 with 816,000?

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 $816,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.7%
1 years$67,385$66,784$66,199$65,627$65,069$64,070
2 years$33,359$32,737$32,135$31,551$30,985$29,981
3 years$22,018$21,394$20,794$20,215$19,658$18,681
4 years$16,349$15,727$15,132$14,564$14,020$13,076
5 years$12,949$12,330$11,743$11,187$10,658$9,751
6 years$10,682$10,069$9,490$8,946$8,433$7,563
7 years$9,064$8,456$7,887$7,355$6,859$6,026
8 years$7,851$7,248$6,688$6,170$5,690$4,895
9 years$6,908$6,311$5,761$5,255$4,792$4,034
10 years$6,154$5,563$5,022$4,530$4,083$3,362
11 years$5,538$4,952$4,422$3,943$3,511$2,826
12 years$5,024$4,445$3,924$3,458$3,043$2,393
13 years$4,590$4,017$3,506$3,053$2,653$2,038
14 years$4,218$3,651$3,150$2,710$2,326$1,743
15 years$3,897$3,335$2,844$2,417$2,048$1,498
16 years$3,615$3,060$2,579$2,164$1,810$1,291
17 years$3,367$2,818$2,346$1,944$1,605$1,115
18 years$3,147$2,604$2,142$1,752$1,427$966
19 years$2,950$2,413$1,961$1,583$1,272$839
20 years$2,773$2,243$1,800$1,434$1,136$729
21 years$2,613$2,089$1,655$1,302$1,017$635
22 years$2,468$1,950$1,526$1,183$911$554
23 years$2,336$1,824$1,409$1,078$818$483
24 years$2,215$1,709$1,303$983$735$422
25 years$2,104$1,604$1,207$898$662$369
26 years$2,001$1,507$1,119$821$596$323
27 years$1,907$1,418$1,039$751$537$283
28 years$1,819$1,337$966$688$485$248
29 years$1,737$1,261$899$631$438$217
30 years$1,661$1,191$837$579$396$190
31 years$1,590$1,126$781$532$358$167
32 years$1,524$1,065$728$489$324$147
33 years$1,461$1,009$680$450$293$129
34 years$1,403$956$635$414$265$113
35 years$1,348$907$594$381$240$99
36 years$1,296$861$556$351$218$87
37 years$1,247$817$520$323$197$77
38 years$1,201$777$487$298$179$67
39 years$1,157$739$456$275$162$59
40 years$1,116$703$428$253$147$52
41 years$1,076$669$401$234$133$46
42 years$1,039$637$376$216$121$40
43 years$1,003$607$353$199$110$35
44 years$970$579$331$184$100$31
45 years$937$552$311$170$91$27
46 years$907$526$292$157$82$24
47 years$877$502$275$145$75$21
48 years$849$480$258$134$68$19
49 years$822$458$243$124$62$16
50 years$797$437$228$114$56$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $816,000, adding $6,063 every year, while hoping to spend $41,655 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: 50/31/19 Blend
39$816,000$816,000$816,000$816,000
40$905,486$862,238$849,590$945,690
41$953,525$860,167$833,731$972,041
42$1,005,068$856,599$815,944$995,889
43$1,060,428$851,415$796,121$1,020,919
44$1,119,949$844,492$774,149$1,047,258
45$1,184,010$835,698$749,909$1,075,046
46$1,253,024$824,892$723,276$1,104,444
47$1,327,447$811,927$694,120$1,135,628
48$1,407,780$796,644$662,306$1,168,797
49$1,494,572$778,878$627,692$1,204,171
50$1,588,428$758,453$590,129$1,241,997
51$1,690,011$735,181$549,462$1,282,549
52$1,800,052$708,864$505,529$1,326,136
53$1,919,353$679,295$458,161$1,373,096
54$2,048,798$646,251$407,180$1,423,811
55$2,189,357$609,499$352,401$1,478,702
56$2,342,097$568,790$293,633$1,538,240
57$2,508,194$523,864$230,673$1,602,948
58$2,688,940$474,443$163,310$1,673,407
59$2,885,757$420,235$91,326$1,750,261
60$3,100,208$360,932$14,490$1,834,228
61$3,334,018$296,205$0$1,926,104
62$3,589,080$225,712$0$2,040,457
63$3,867,480$149,086$0$2,168,606
64$4,171,515$65,943$0$2,308,751
65$4,503,713$0$0$2,462,150
66$4,866,856$0$0$2,638,428
67$5,264,008$0$0$2,855,897
68$5,698,543$0$0$3,093,922
69$6,174,175$0$0$3,354,547
70$6,694,994$0$0$3,640,025
71$7,265,505$0$0$3,952,835
72$7,890,668$0$0$4,295,711
73$8,575,947$0$0$4,671,660
74$9,327,357$0$0$5,083,996
75$10,151,526$0$0$5,536,369
76$11,055,753$0$0$6,032,798
77$12,048,078$0$0$6,577,713
78$13,137,355$0$0$7,175,991
79$14,333,341$0$0$7,833,004
80$15,646,781$0$0$8,554,672
81$17,089,511$0$0$9,347,516
82$18,674,573$0$0$10,218,717
83$20,416,333$0$0$11,176,191
84$22,330,615$0$0$12,228,655
85$24,434,857$0$0$13,385,713
86$26,748,267$0$0$14,657,949
87$29,292,008$0$0$16,057,019
88$32,089,396$0$0$17,595,769
89$35,166,120$0$0$19,288,351
90$38,550,484$0$0$21,150,358
91$42,273,671$0$0$23,198,969
92$46,370,041$0$0$25,453,113
93$50,877,451$0$0$27,933,648
94$55,837,614$0$0$30,663,553
95$61,296,489$0$0$33,668,149
96$67,304,718$0$0$36,975,338
97$73,918,099$0$0$40,615,860
98$81,198,117$0$0$44,623,590
99$89,212,519$0$0$49,035,853
100$98,035,953$0$0$53,893,777