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%17.7%
1 years$69,532$68,912$68,308$67,718$67,142$65,045
2 years$34,422$33,781$33,159$32,557$31,973$29,878
3 years$22,720$22,076$21,456$20,859$20,285$18,259
4 years$16,870$16,228$15,615$15,028$14,467$12,526
5 years$13,361$12,723$12,118$11,543$10,998$9,146
6 years$11,023$10,389$9,793$9,231$8,702$6,941
7 years$9,353$8,725$8,138$7,589$7,077$5,407
8 years$8,101$7,479$6,902$6,367$5,871$4,291
9 years$7,128$6,512$5,944$5,423$4,944$3,452
10 years$6,350$5,740$5,182$4,675$4,213$2,806
11 years$5,714$5,110$4,562$4,068$3,623$2,300
12 years$5,184$4,586$4,049$3,568$3,140$1,897
13 years$4,736$4,145$3,618$3,150$2,738$1,573
14 years$4,353$3,767$3,250$2,797$2,400$1,309
15 years$4,021$3,442$2,935$2,494$2,113$1,094
16 years$3,730$3,158$2,661$2,233$1,868$916
17 years$3,474$2,908$2,421$2,006$1,656$769
18 years$3,247$2,687$2,210$1,808$1,472$647
19 years$3,044$2,490$2,023$1,634$1,312$545
20 years$2,862$2,314$1,857$1,480$1,172$460
21 years$2,697$2,156$1,708$1,343$1,049$388
22 years$2,547$2,012$1,574$1,221$940$328
23 years$2,411$1,882$1,453$1,112$844$278
24 years$2,286$1,763$1,344$1,014$759$235
25 years$2,171$1,655$1,245$926$683$199
26 years$2,065$1,555$1,155$847$615$169
27 years$1,967$1,464$1,072$775$554$143
28 years$1,877$1,379$997$710$500$121
29 years$1,792$1,301$928$651$452$103
30 years$1,714$1,229$864$598$408$87
31 years$1,641$1,162$806$549$369$74
32 years$1,572$1,099$752$505$334$63
33 years$1,508$1,041$702$464$302$53
34 years$1,448$986$656$427$274$45
35 years$1,391$936$613$393$248$39
36 years$1,337$888$573$362$224$33
37 years$1,287$843$537$333$203$28
38 years$1,239$802$503$307$184$24
39 years$1,194$762$471$283$167$20
40 years$1,151$725$441$261$152$17
41 years$1,111$690$414$241$138$14
42 years$1,072$657$388$223$125$12
43 years$1,035$626$364$205$113$10
44 years$1,000$597$342$190$103$9
45 years$967$569$321$175$93$8
46 years$935$543$302$162$85$6
47 years$905$518$283$150$77$5
48 years$876$495$266$138$70$5
49 years$849$473$250$128$64$4
50 years$822$451$235$118$58$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $842,000, adding $4,978 every year, while hoping to spend $49,538 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: 41/42/17 Blend
39$842,000$842,000$842,000$842,000
40$933,019$888,393$875,342$966,408
41$975,479$879,216$851,958$981,380
42$1,020,609$867,929$826,130$992,373
43$1,068,630$854,377$797,724$1,003,225
44$1,119,783$838,394$766,601$1,013,947
45$1,174,331$819,805$732,612$1,024,556
46$1,232,564$798,427$695,605$1,035,073
47$1,294,797$774,061$655,420$1,045,528
48$1,361,379$746,502$611,888$1,055,957
49$1,432,688$715,530$564,836$1,066,404
50$1,509,144$680,912$514,079$1,076,924
51$1,591,203$642,404$459,427$1,087,581
52$1,679,368$599,744$400,681$1,098,453
53$1,774,191$552,658$337,630$1,109,632
54$1,876,276$500,857$270,059$1,121,226
55$1,986,290$444,032$197,740$1,133,360
56$2,104,962$381,860$120,434$1,146,179
57$2,233,094$313,998$37,895$1,159,851
58$2,371,569$240,083$0$1,174,571
59$2,521,356$159,734$0$1,199,663
60$2,683,519$72,546$0$1,234,206
61$2,859,230$0$0$1,271,660
62$3,049,777$0$0$1,322,532
63$3,256,574$0$0$1,414,221
64$3,481,180$0$0$1,513,902
65$3,725,308$0$0$1,622,346
66$3,990,841$0$0$1,740,404
67$4,279,854$0$0$1,869,009
68$4,594,627$0$0$2,009,192
69$4,937,672$0$0$2,162,083
70$5,311,750$0$0$2,328,931
71$5,719,903$0$0$2,511,105
72$6,165,478$0$0$2,710,117
73$6,652,159$0$0$2,927,629
74$7,184,003$0$0$3,165,471
75$7,765,474$0$0$3,425,658
76$8,401,489$0$0$3,710,410
77$9,097,462$0$0$4,022,170
78$9,859,353$0$0$4,363,628
79$10,693,727$0$0$4,737,747
80$11,607,811$0$0$5,147,791
81$12,609,567$0$0$5,597,354
82$13,707,761$0$0$6,090,393
83$14,912,050$0$0$6,631,269
84$16,233,068$0$0$7,224,783
85$17,682,530$0$0$7,876,225
86$19,273,337$0$0$8,591,421
87$21,019,704$0$0$9,376,790
88$22,937,286$0$0$10,239,401
89$25,043,328$0$0$11,187,043
90$27,356,829$0$0$12,228,296
91$29,898,719$0$0$13,372,613
92$32,692,053$0$0$14,630,406
93$35,762,233$0$0$16,013,148
94$39,137,243$0$0$17,533,479
95$42,847,912$0$0$19,205,324
96$46,928,207$0$0$21,044,025
97$51,415,552$0$0$23,066,487
98$56,351,177$0$0$25,291,332
99$61,780,509$0$0$27,739,081
100$67,753,601$0$0$30,432,344