Can I retire at age 40 with 842,000?

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 $842,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.1%
1 years$69,532$68,912$68,308$67,718$67,142$65,202
2 years$34,422$33,781$33,159$32,557$31,973$30,033
3 years$22,720$22,076$21,456$20,859$20,285$18,407
4 years$16,870$16,228$15,615$15,028$14,467$12,666
5 years$13,361$12,723$12,118$11,543$10,998$9,277
6 years$11,023$10,389$9,793$9,231$8,702$7,064
7 years$9,353$8,725$8,138$7,589$7,077$5,522
8 years$8,101$7,479$6,902$6,367$5,871$4,397
9 years$7,128$6,512$5,944$5,423$4,944$3,551
10 years$6,350$5,740$5,182$4,675$4,213$2,897
11 years$5,714$5,110$4,562$4,068$3,623$2,384
12 years$5,184$4,586$4,049$3,568$3,140$1,974
13 years$4,736$4,145$3,618$3,150$2,738$1,643
14 years$4,353$3,767$3,250$2,797$2,400$1,374
15 years$4,021$3,442$2,935$2,494$2,113$1,152
16 years$3,730$3,158$2,661$2,233$1,868$970
17 years$3,474$2,908$2,421$2,006$1,656$818
18 years$3,247$2,687$2,210$1,808$1,472$691
19 years$3,044$2,490$2,023$1,634$1,312$585
20 years$2,862$2,314$1,857$1,480$1,172$495
21 years$2,697$2,156$1,708$1,343$1,049$420
22 years$2,547$2,012$1,574$1,221$940$357
23 years$2,411$1,882$1,453$1,112$844$303
24 years$2,286$1,763$1,344$1,014$759$258
25 years$2,171$1,655$1,245$926$683$220
26 years$2,065$1,555$1,155$847$615$187
27 years$1,967$1,464$1,072$775$554$159
28 years$1,877$1,379$997$710$500$136
29 years$1,792$1,301$928$651$452$116
30 years$1,714$1,229$864$598$408$99
31 years$1,641$1,162$806$549$369$84
32 years$1,572$1,099$752$505$334$72
33 years$1,508$1,041$702$464$302$61
34 years$1,448$986$656$427$274$52
35 years$1,391$936$613$393$248$45
36 years$1,337$888$573$362$224$38
37 years$1,287$843$537$333$203$33
38 years$1,239$802$503$307$184$28
39 years$1,194$762$471$283$167$24
40 years$1,151$725$441$261$152$20
41 years$1,111$690$414$241$138$17
42 years$1,072$657$388$223$125$15
43 years$1,035$626$364$205$113$13
44 years$1,000$597$342$190$103$11
45 years$967$569$321$175$93$9
46 years$935$543$302$162$85$8
47 years$905$518$283$150$77$7
48 years$876$495$266$138$70$6
49 years$849$473$250$128$64$5
50 years$822$451$235$118$58$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $842,000, adding $3,674 every year, while hoping to spend $37,442 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: 57/36/7 Blend
39$842,000$842,000$842,000$842,000
40$931,674$887,048$873,997$983,139
41$986,866$890,675$863,438$1,021,823
42$1,046,434$893,225$851,270$1,059,420
43$1,110,783$894,606$837,400$1,099,459
44$1,180,360$894,719$821,730$1,142,177
45$1,255,657$893,461$804,159$1,187,835
46$1,337,214$890,720$784,578$1,236,724
47$1,425,624$886,379$762,875$1,289,163
48$1,521,540$880,314$738,934$1,345,507
49$1,625,681$872,393$712,632$1,406,150
50$1,738,835$862,476$683,840$1,471,524
51$1,861,873$850,413$652,425$1,542,110
52$1,995,749$836,049$618,246$1,618,440
53$2,141,515$819,215$581,158$1,701,099
54$2,300,329$799,736$541,006$1,790,738
55$2,473,463$777,424$497,630$1,888,073
56$2,662,321$752,082$450,865$1,993,900
57$2,868,443$723,499$400,535$2,109,095
58$3,093,529$691,455$346,457$2,234,628
59$3,339,447$655,715$288,442$2,371,571
60$3,608,256$616,031$226,290$2,521,109
61$3,902,222$572,139$159,794$2,684,552
62$4,223,838$523,764$88,737$2,863,345
63$4,575,852$470,611$12,892$3,059,088
64$4,961,289$412,371$0$3,273,546
65$5,383,480$348,717$0$3,513,753
66$5,846,093$279,301$0$3,778,140
67$6,353,167$203,760$0$4,068,142
68$6,909,152$121,706$0$4,386,408
69$7,518,948$32,733$0$4,735,862
70$8,187,953$0$0$5,119,733
71$8,922,112$0$0$5,566,773
72$9,727,973$0$0$6,071,784
73$10,612,750$0$0$6,626,327
74$11,584,389$0$0$7,235,393
75$12,651,643$0$0$7,904,479
76$13,824,154$0$0$8,639,641
77$15,112,546$0$0$9,447,550
78$16,528,521$0$0$10,335,555
79$18,084,973$0$0$11,311,755
80$19,796,104$0$0$12,385,068
81$21,677,565$0$0$13,565,325
82$23,746,595$0$0$14,863,352
83$26,022,191$0$0$16,291,081
84$28,525,282$0$0$17,861,655
85$31,278,925$0$0$19,589,558
86$34,308,529$0$0$21,490,747
87$37,642,085$0$0$23,582,803
88$41,310,438$0$0$25,885,098
89$45,347,572$0$0$28,418,979
90$49,790,932$0$0$31,207,964
91$54,681,780$0$0$34,277,968
92$60,065,578$0$0$37,657,546
93$65,992,420$0$0$41,378,163
94$72,517,504$0$0$45,474,489
95$79,701,654$0$0$49,984,726
96$87,611,889$0$0$54,950,971
97$96,322,059$0$0$60,419,608
98$105,913,540$0$0$66,441,750
99$116,476,000$0$0$73,073,721
100$128,108,249$0$0$80,377,582