Can I retire at age 40 with 845,000?

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 $845,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.2%
1 years$69,779$69,158$68,551$67,959$67,381$67,041
2 years$34,544$33,901$33,277$32,673$32,086$31,743
3 years$22,801$22,155$21,533$20,934$20,357$20,021
4 years$16,930$16,286$15,670$15,082$14,519$14,193
5 years$13,409$12,768$12,161$11,584$11,037$10,722
6 years$11,062$10,426$9,828$9,264$8,733$8,430
7 years$9,386$8,756$8,167$7,616$7,102$6,811
8 years$8,130$7,506$6,926$6,389$5,892$5,612
9 years$7,153$6,535$5,965$5,442$4,962$4,693
10 years$6,373$5,760$5,201$4,691$4,228$3,971
11 years$5,734$5,128$4,579$4,083$3,636$3,390
12 years$5,203$4,603$4,064$3,581$3,151$2,916
13 years$4,753$4,159$3,630$3,162$2,748$2,524
14 years$4,368$3,781$3,262$2,807$2,409$2,195
15 years$4,035$3,454$2,945$2,503$2,121$1,918
16 years$3,744$3,169$2,670$2,241$1,874$1,681
17 years$3,487$2,918$2,430$2,014$1,662$1,479
18 years$3,259$2,697$2,218$1,815$1,478$1,304
19 years$3,055$2,499$2,031$1,640$1,317$1,152
20 years$2,872$2,322$1,864$1,485$1,176$1,020
21 years$2,706$2,163$1,714$1,348$1,053$905
22 years$2,556$2,019$1,580$1,225$944$804
23 years$2,419$1,889$1,459$1,116$847$716
24 years$2,294$1,770$1,349$1,018$761$637
25 years$2,179$1,661$1,249$930$685$568
26 years$2,072$1,561$1,159$850$617$507
27 years$1,974$1,469$1,076$778$556$453
28 years$1,883$1,384$1,000$713$502$405
29 years$1,799$1,306$931$654$453$362
30 years$1,720$1,233$867$600$410$324
31 years$1,647$1,166$808$551$370$290
32 years$1,578$1,103$754$506$335$260
33 years$1,513$1,045$704$466$303$233
34 years$1,453$990$658$428$274$209
35 years$1,396$939$615$394$249$187
36 years$1,342$891$575$363$225$168
37 years$1,291$846$539$335$204$151
38 years$1,244$804$504$308$185$135
39 years$1,198$765$473$284$168$121
40 years$1,155$728$443$262$152$109
41 years$1,115$693$415$242$138$98
42 years$1,076$660$390$223$125$88
43 years$1,039$629$366$206$114$79
44 years$1,004$599$343$190$103$71
45 years$971$571$322$176$94$64
46 years$939$545$303$162$85$57
47 years$908$520$284$150$77$51
48 years$879$497$267$139$70$46
49 years$852$474$251$128$64$42
50 years$825$453$236$118$58$37

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $845,000, adding $6,296 every year, while hoping to spend $59,990 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: 41/49/10 Blend
39$845,000$845,000$845,000$845,000
40$937,684$892,899$879,802$973,102
41$969,499$872,822$845,446$978,471
42$1,002,549$849,751$807,929$977,806
43$1,036,895$823,476$767,081$975,741
44$1,072,606$793,773$722,726$972,172
45$1,109,752$760,409$674,678$966,993
46$1,148,411$723,133$622,744$960,090
47$1,188,666$681,683$566,723$951,345
48$1,230,604$635,781$506,402$940,632
49$1,274,323$585,130$441,564$927,822
50$1,319,924$529,422$371,976$912,777
51$1,367,518$468,325$297,399$895,353
52$1,417,225$401,493$217,582$875,400
53$1,469,174$328,558$132,263$852,760
54$1,523,504$249,133$41,169$827,270
55$1,580,367$162,806$0$798,756
56$1,639,927$69,146$0$773,020
57$1,702,360$0$0$748,973
58$1,767,859$0$0$739,473
59$1,836,632$0$0$768,678
60$1,908,906$0$0$799,407
61$1,984,928$0$0$831,768
62$2,064,965$0$0$865,882
63$2,149,310$0$0$901,876
64$2,238,280$0$0$939,894
65$2,332,222$0$0$980,090
66$2,431,513$0$0$1,022,631
67$2,536,567$0$0$1,067,703
68$2,647,832$0$0$1,115,507
69$2,765,802$0$0$1,166,261
70$2,891,013$0$0$1,220,208
71$3,024,053$0$0$1,277,609
72$3,165,565$0$0$1,338,752
73$3,316,253$0$0$1,403,953
74$3,476,887$0$0$1,473,557
75$3,648,310$0$0$1,547,942
76$3,831,447$0$0$1,627,524
77$4,027,311$0$0$1,712,755
78$4,237,012$0$0$1,804,136
79$4,461,768$0$0$1,902,213
80$4,702,916$0$0$2,007,587
81$4,961,922$0$0$2,120,916
82$5,240,394$0$0$2,242,925
83$5,540,099$0$0$2,374,407
84$5,862,978$0$0$2,516,235
85$6,211,161$0$0$2,669,369
86$6,586,989$0$0$2,834,861
87$6,993,033$0$0$3,013,870
88$7,432,119$0$0$3,207,668
89$7,907,356$0$0$3,417,654
90$8,422,157$0$0$3,645,368
91$8,980,278$0$0$3,892,500
92$9,585,847$0$0$4,160,912
93$10,243,406$0$0$4,452,650
94$10,957,950$0$0$4,769,966
95$11,734,974$0$0$5,115,338
96$12,580,523$0$0$5,491,491
97$13,501,247$0$0$5,901,425
98$14,504,468$0$0$6,348,440
99$15,598,238$0$0$6,836,171
100$16,791,424$0$0$7,368,617