Can I retire at age 40 with 846,000?

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 $846,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.9%
1 years$69,862$69,240$68,632$68,040$67,461$65,565
2 years$34,585$33,941$33,317$32,711$32,124$30,228
3 years$22,828$22,181$21,558$20,959$20,381$18,544
4 years$16,950$16,305$15,689$15,099$14,536$12,773
5 years$13,425$12,784$12,175$11,598$11,050$9,366
6 years$11,075$10,439$9,839$9,275$8,743$7,139
7 years$9,397$8,766$8,177$7,625$7,111$5,587
8 years$8,140$7,514$6,934$6,397$5,899$4,454
9 years$7,162$6,543$5,973$5,449$4,968$3,601
10 years$6,380$5,767$5,207$4,697$4,233$2,942
11 years$5,741$5,134$4,584$4,088$3,640$2,424
12 years$5,209$4,608$4,068$3,585$3,155$2,010
13 years$4,759$4,164$3,635$3,165$2,751$1,675
14 years$4,373$3,785$3,266$2,810$2,411$1,403
15 years$4,040$3,458$2,949$2,506$2,123$1,178
16 years$3,748$3,173$2,673$2,244$1,877$993
17 years$3,491$2,922$2,433$2,016$1,664$838
18 years$3,263$2,700$2,221$1,817$1,479$709
19 years$3,059$2,502$2,033$1,642$1,319$601
20 years$2,875$2,325$1,866$1,487$1,178$510
21 years$2,710$2,166$1,716$1,349$1,054$434
22 years$2,559$2,022$1,582$1,227$945$369
23 years$2,422$1,891$1,460$1,117$848$314
24 years$2,296$1,772$1,351$1,019$762$268
25 years$2,181$1,663$1,251$931$686$228
26 years$2,075$1,563$1,160$851$618$195
27 years$1,977$1,471$1,077$779$557$166
28 years$1,886$1,386$1,002$714$503$142
29 years$1,801$1,307$932$654$454$121
30 years$1,722$1,235$868$601$410$103
31 years$1,648$1,167$809$552$371$88
32 years$1,580$1,104$755$507$335$75
33 years$1,515$1,046$705$466$304$64
34 years$1,454$991$659$429$275$55
35 years$1,397$940$616$395$249$47
36 years$1,344$892$576$364$226$40
37 years$1,293$847$539$335$204$34
38 years$1,245$805$505$309$185$29
39 years$1,200$766$473$285$168$25
40 years$1,157$729$443$263$152$22
41 years$1,116$694$416$242$138$18
42 years$1,077$661$390$224$125$16
43 years$1,040$629$366$206$114$13
44 years$1,005$600$344$191$103$12
45 years$972$572$323$176$94$10
46 years$940$546$303$163$85$8
47 years$909$521$285$150$77$7
48 years$880$497$268$139$70$6
49 years$853$475$251$128$64$5
50 years$826$454$236$119$58$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $846,000, adding $4,225 every year, while hoping to spend $59,659 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: 88/5/7 Blend
39$846,000$846,000$846,000$846,000
40$936,650$891,812$878,699$1,018,259
41$968,712$872,034$844,659$1,052,265
42$1,002,044$849,288$807,479$1,080,896
43$1,036,714$823,364$766,990$1,110,423
44$1,072,792$794,043$723,018$1,140,893
45$1,110,357$761,090$675,379$1,172,354
46$1,149,489$724,259$623,880$1,204,859
47$1,190,277$683,289$568,320$1,238,466
48$1,232,818$637,902$508,492$1,273,240
49$1,277,213$587,807$444,174$1,309,247
50$1,323,574$532,695$375,139$1,346,563
51$1,372,021$472,239$301,148$1,385,271
52$1,422,683$406,095$221,952$1,425,460
53$1,475,699$333,896$137,291$1,467,228
54$1,531,223$255,259$46,892$1,510,682
55$1,589,417$169,776$0$1,555,940
56$1,650,461$77,018$0$1,606,835
57$1,714,546$0$0$1,663,783
58$1,781,885$0$0$1,724,748
59$1,852,704$0$0$1,793,324
60$1,927,253$0$0$1,865,512
61$2,005,801$0$0$1,941,576
62$2,088,642$0$0$2,021,800
63$2,176,099$0$0$2,106,496
64$2,268,520$0$0$2,196,003
65$2,366,288$0$0$2,290,691
66$2,469,819$0$0$2,390,963
67$2,579,568$0$0$2,497,263
68$2,696,034$0$0$2,610,071
69$2,819,759$0$0$2,729,915
70$2,951,339$0$0$2,857,372
71$3,091,426$0$0$2,993,074
72$3,240,731$0$0$3,137,711
73$3,400,036$0$0$3,292,040
74$3,570,196$0$0$3,456,891
75$3,752,147$0$0$3,633,172
76$3,946,918$0$0$3,821,880
77$4,155,636$0$0$4,024,107
78$4,379,535$0$0$4,241,051
79$4,619,974$0$0$4,474,028
80$4,878,439$0$0$4,724,481
81$5,156,565$0$0$4,993,994
82$5,456,147$0$0$5,284,307
83$5,779,155$0$0$5,597,332
84$6,127,754$0$0$5,935,167
85$6,504,323$0$0$6,300,118
86$6,911,475$0$0$6,694,721
87$7,352,083$0$0$7,121,762
88$7,829,306$0$0$7,584,302
89$8,346,616$0$0$8,085,708
90$8,907,831$0$0$8,629,685
91$9,517,151$0$0$9,220,302
92$10,179,195$0$0$9,862,040
93$10,899,042$0$0$10,559,826
94$11,682,283$0$0$11,319,078
95$12,535,069$0$0$12,145,763
96$13,464,166$0$0$13,046,441
97$14,477,022$0$0$14,028,336
98$15,581,835$0$0$15,099,395
99$16,787,625$0$0$16,268,368
100$18,104,323$0$0$17,544,885