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%15.2%
1 years$69,862$69,240$68,632$68,040$67,461$66,018
2 years$34,585$33,941$33,317$32,711$32,124$30,678
3 years$22,828$22,181$21,558$20,959$20,381$18,976
4 years$16,950$16,305$15,689$15,099$14,536$13,183
5 years$13,425$12,784$12,175$11,598$11,050$9,753
6 years$11,075$10,439$9,839$9,275$8,743$7,504
7 years$9,397$8,766$8,177$7,625$7,111$5,929
8 years$8,140$7,514$6,934$6,397$5,899$4,774
9 years$7,162$6,543$5,973$5,449$4,968$3,900
10 years$6,380$5,767$5,207$4,697$4,233$3,220
11 years$5,741$5,134$4,584$4,088$3,640$2,682
12 years$5,209$4,608$4,068$3,585$3,155$2,248
13 years$4,759$4,164$3,635$3,165$2,751$1,896
14 years$4,373$3,785$3,266$2,810$2,411$1,606
15 years$4,040$3,458$2,949$2,506$2,123$1,365
16 years$3,748$3,173$2,673$2,244$1,877$1,164
17 years$3,491$2,922$2,433$2,016$1,664$995
18 years$3,263$2,700$2,221$1,817$1,479$853
19 years$3,059$2,502$2,033$1,642$1,319$732
20 years$2,875$2,325$1,866$1,487$1,178$629
21 years$2,710$2,166$1,716$1,349$1,054$542
22 years$2,559$2,022$1,582$1,227$945$467
23 years$2,422$1,891$1,460$1,117$848$403
24 years$2,296$1,772$1,351$1,019$762$348
25 years$2,181$1,663$1,251$931$686$301
26 years$2,075$1,563$1,160$851$618$260
27 years$1,977$1,471$1,077$779$557$225
28 years$1,886$1,386$1,002$714$503$195
29 years$1,801$1,307$932$654$454$169
30 years$1,722$1,235$868$601$410$146
31 years$1,648$1,167$809$552$371$126
32 years$1,580$1,104$755$507$335$110
33 years$1,515$1,046$705$466$304$95
34 years$1,454$991$659$429$275$82
35 years$1,397$940$616$395$249$71
36 years$1,344$892$576$364$226$62
37 years$1,293$847$539$335$204$54
38 years$1,245$805$505$309$185$47
39 years$1,200$766$473$285$168$40
40 years$1,157$729$443$263$152$35
41 years$1,116$694$416$242$138$30
42 years$1,077$661$390$224$125$26
43 years$1,040$629$366$206$114$23
44 years$1,005$600$344$191$103$20
45 years$972$572$323$176$94$17
46 years$940$546$303$163$85$15
47 years$909$521$285$150$77$13
48 years$880$497$268$139$70$11
49 years$853$475$251$128$64$10
50 years$826$454$236$119$58$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $846,000, adding $3,812 every year, while hoping to spend $58,420 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: 67/7/26 Blend
39$846,000$846,000$846,000$846,000
40$936,224$891,386$878,273$992,390
41$969,561$872,906$845,537$1,012,169
42$1,004,339$851,562$809,746$1,026,821
43$1,040,646$827,152$770,736$1,041,515
44$1,078,572$799,463$728,337$1,056,259
45$1,118,218$768,268$682,368$1,071,062
46$1,159,692$733,329$632,642$1,085,934
47$1,203,109$694,391$578,964$1,100,892
48$1,248,596$651,186$521,130$1,115,953
49$1,296,291$603,432$458,925$1,131,142
50$1,346,341$550,828$392,127$1,146,486
51$1,398,907$493,058$320,503$1,162,018
52$1,454,165$429,788$243,810$1,177,778
53$1,512,306$360,663$161,793$1,193,813
54$1,573,536$285,310$74,188$1,210,177
55$1,638,081$203,335$0$1,226,933
56$1,706,188$114,321$0$1,249,511
57$1,778,123$17,827$0$1,294,951
58$1,854,180$0$0$1,342,832
59$1,934,677$0$0$1,400,025
60$2,019,963$0$0$1,462,100
61$2,110,419$0$0$1,527,964
62$2,206,460$0$0$1,597,922
63$2,308,542$0$0$1,672,311
64$2,417,163$0$0$1,751,497
65$2,532,867$0$0$1,835,880
66$2,656,252$0$0$1,925,901
67$2,787,970$0$0$2,022,042
68$2,928,738$0$0$2,124,829
69$3,079,341$0$0$2,234,841
70$3,240,639$0$0$2,352,713
71$3,413,577$0$0$2,479,141
72$3,599,190$0$0$2,614,887
73$3,798,614$0$0$2,760,790
74$4,013,097$0$0$2,917,769
75$4,244,008$0$0$3,086,835
76$4,492,853$0$0$3,269,096
77$4,761,282$0$0$3,465,771
78$5,051,110$0$0$3,678,198
79$5,364,333$0$0$3,907,849
80$5,703,142$0$0$4,156,340
81$6,069,946$0$0$4,425,449
82$6,467,394$0$0$4,717,130
83$6,898,399$0$0$5,033,531
84$7,366,164$0$0$5,377,015
85$7,874,210$0$0$5,750,182
86$8,426,413$0$0$6,155,890
87$9,027,036$0$0$6,597,285
88$9,680,767$0$0$7,077,827
89$10,392,768$0$0$7,601,325
90$11,168,716$0$0$8,171,969
91$12,014,862$0$0$8,794,370
92$12,938,083$0$0$9,473,605
93$13,945,950$0$0$10,215,262
94$15,046,797$0$0$11,025,492
95$16,249,799$0$0$11,911,066
96$17,565,057$0$0$12,879,438
97$19,003,691$0$0$13,938,819
98$20,577,946$0$0$15,098,245
99$22,301,305$0$0$16,367,669
100$24,188,616$0$0$17,758,050