Can I retire at age 40 with 842,000?

Use the below retirement simulation to view the chances of a successful retirement.
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%14%
1 years$69,532$68,912$68,308$67,718$67,142$66,030
2 years$34,422$33,781$33,159$32,557$31,973$30,855
3 years$22,720$22,076$21,456$20,859$20,285$19,197
4 years$16,870$16,228$15,615$15,028$14,467$13,418
5 years$13,361$12,723$12,118$11,543$10,998$9,989
6 years$11,023$10,389$9,793$9,231$8,702$7,736
7 years$9,353$8,725$8,138$7,589$7,077$6,153
8 years$8,101$7,479$6,902$6,367$5,871$4,990
9 years$7,128$6,512$5,944$5,423$4,944$4,105
10 years$6,350$5,740$5,182$4,675$4,213$3,415
11 years$5,714$5,110$4,562$4,068$3,623$2,865
12 years$5,184$4,586$4,049$3,568$3,140$2,421
13 years$4,736$4,145$3,618$3,150$2,738$2,058
14 years$4,353$3,767$3,250$2,797$2,400$1,757
15 years$4,021$3,442$2,935$2,494$2,113$1,506
16 years$3,730$3,158$2,661$2,233$1,868$1,295
17 years$3,474$2,908$2,421$2,006$1,656$1,117
18 years$3,247$2,687$2,210$1,808$1,472$965
19 years$3,044$2,490$2,023$1,634$1,312$836
20 years$2,862$2,314$1,857$1,480$1,172$725
21 years$2,697$2,156$1,708$1,343$1,049$630
22 years$2,547$2,012$1,574$1,221$940$548
23 years$2,411$1,882$1,453$1,112$844$477
24 years$2,286$1,763$1,344$1,014$759$416
25 years$2,171$1,655$1,245$926$683$363
26 years$2,065$1,555$1,155$847$615$317
27 years$1,967$1,464$1,072$775$554$277
28 years$1,877$1,379$997$710$500$242
29 years$1,792$1,301$928$651$452$212
30 years$1,714$1,229$864$598$408$185
31 years$1,641$1,162$806$549$369$162
32 years$1,572$1,099$752$505$334$142
33 years$1,508$1,041$702$464$302$124
34 years$1,448$986$656$427$274$109
35 years$1,391$936$613$393$248$95
36 years$1,337$888$573$362$224$83
37 years$1,287$843$537$333$203$73
38 years$1,239$802$503$307$184$64
39 years$1,194$762$471$283$167$56
40 years$1,151$725$441$261$152$49
41 years$1,111$690$414$241$138$43
42 years$1,072$657$388$223$125$38
43 years$1,035$626$364$205$113$33
44 years$1,000$597$342$190$103$29
45 years$967$569$321$175$93$25
46 years$935$543$302$162$85$22
47 years$905$518$283$150$77$20
48 years$876$495$266$138$70$17
49 years$849$473$250$128$64$15
50 years$822$451$235$118$58$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $842,000, adding $3,744 every year, while hoping to spend $38,737 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: 58/22/20 Blend
39$842,000$842,000$842,000$842,000
40$931,746$887,120$874,069$980,638
41$985,568$889,373$862,134$1,016,547
42$1,043,582$890,438$848,502$1,051,155
43$1,106,174$890,216$833,073$1,088,023
44$1,173,769$888,602$815,746$1,127,379
45$1,246,834$885,484$796,414$1,169,473
46$1,325,881$880,743$774,965$1,214,582
47$1,411,476$874,254$751,281$1,263,014
48$1,504,237$865,883$725,239$1,315,108
49$1,604,847$855,489$696,712$1,371,242
50$1,714,055$842,922$665,566$1,431,833
51$1,832,686$828,022$631,659$1,497,342
52$1,961,647$810,622$594,847$1,568,279
53$2,101,935$790,544$554,975$1,645,211
54$2,254,650$767,597$511,884$1,728,762
55$2,420,998$741,584$465,406$1,819,624
56$2,602,310$712,291$415,367$1,918,561
57$2,800,048$679,496$361,585$2,026,421
58$3,015,823$642,962$303,868$2,144,138
59$3,251,408$602,437$242,018$2,272,746
60$3,508,753$557,658$175,827$2,413,388
61$3,790,007$508,344$105,078$2,567,330
62$4,097,534$454,200$29,546$2,735,966
63$4,433,940$394,913$0$2,920,841
64$4,802,090$330,152$0$3,134,557
65$5,205,142$259,568$0$3,375,537
66$5,646,572$182,793$0$3,639,608
67$6,130,209$99,436$0$3,929,126
68$6,660,269$9,087$0$4,246,690
69$7,241,396$0$0$4,595,168
70$7,878,703$0$0$4,999,194
71$8,577,825$0$0$5,444,893
72$9,344,965$0$0$5,934,030
73$10,186,958$0$0$6,470,973
74$11,111,332$0$0$7,060,532
75$12,126,378$0$0$7,708,005
76$13,241,233$0$0$8,419,231
77$14,465,959$0$0$9,200,640
78$15,811,641$0$0$10,059,315
79$17,290,494$0$0$11,003,063
80$18,915,970$0$0$12,040,479
81$20,702,892$0$0$13,181,039
82$22,667,592$0$0$14,435,176
83$24,828,061$0$0$15,814,391
84$27,204,122$0$0$17,331,350
85$29,817,614$0$0$19,000,012
86$32,692,600$0$0$20,835,755
87$35,855,593$0$0$22,855,522
88$39,335,804$0$0$25,077,983
89$43,165,420$0$0$27,523,707
90$47,379,903$0$0$30,215,360
91$52,018,330$0$0$33,177,916
92$57,123,754$0$0$36,438,890
93$62,743,618$0$0$40,028,604
94$68,930,195$0$0$43,980,466
95$75,741,085$0$0$48,331,291
96$83,239,756$0$0$53,121,641
97$91,496,143$0$0$58,396,214
98$100,587,309$0$0$64,204,263
99$110,598,168$0$0$70,600,060
100$121,622,290$0$0$77,643,407