Can I retire at age 40 with 848,000?

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 $848,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.1%
1 years$70,027$69,403$68,795$68,201$67,621$66,748
2 years$34,667$34,021$33,395$32,789$32,200$31,322
3 years$22,882$22,233$21,609$21,008$20,429$19,573
4 years$16,990$16,344$15,726$15,135$14,570$13,743
5 years$13,456$12,814$12,204$11,625$11,076$10,280
6 years$11,101$10,463$9,863$9,297$8,764$8,000
7 years$9,419$8,787$8,196$7,643$7,128$6,395
8 years$8,159$7,532$6,951$6,412$5,913$5,213
9 years$7,179$6,558$5,987$5,461$4,980$4,312
10 years$6,395$5,781$5,219$4,708$4,243$3,606
11 years$5,755$5,146$4,595$4,097$3,649$3,043
12 years$5,221$4,619$4,078$3,594$3,162$2,586
13 years$4,770$4,174$3,643$3,173$2,757$2,211
14 years$4,384$3,794$3,274$2,816$2,417$1,899
15 years$4,049$3,466$2,956$2,512$2,128$1,638
16 years$3,757$3,180$2,680$2,249$1,881$1,418
17 years$3,499$2,929$2,438$2,021$1,668$1,230
18 years$3,270$2,706$2,226$1,821$1,483$1,070
19 years$3,066$2,508$2,038$1,646$1,322$933
20 years$2,882$2,331$1,870$1,490$1,181$815
21 years$2,716$2,171$1,720$1,353$1,057$713
22 years$2,565$2,026$1,585$1,230$947$624
23 years$2,428$1,895$1,464$1,120$850$548
24 years$2,302$1,776$1,354$1,022$764$481
25 years$2,186$1,667$1,254$933$688$422
26 years$2,080$1,566$1,163$853$619$371
27 years$1,981$1,474$1,080$781$558$327
28 years$1,890$1,389$1,004$715$504$288
29 years$1,805$1,310$934$656$455$253
30 years$1,726$1,237$870$602$411$223
31 years$1,652$1,170$811$553$372$197
32 years$1,583$1,107$757$508$336$174
33 years$1,519$1,048$707$467$304$153
34 years$1,458$993$660$430$275$135
35 years$1,401$942$617$396$250$119
36 years$1,347$894$578$365$226$105
37 years$1,296$849$541$336$205$93
38 years$1,248$807$506$310$186$82
39 years$1,202$768$474$285$168$72
40 years$1,159$730$445$263$153$64
41 years$1,118$695$417$243$139$57
42 years$1,080$662$391$224$126$50
43 years$1,043$631$367$207$114$44
44 years$1,008$601$344$191$104$39
45 years$974$573$323$176$94$34
46 years$942$547$304$163$85$30
47 years$912$522$285$151$78$27
48 years$882$498$268$139$70$24
49 years$855$476$252$129$64$21
50 years$828$455$237$119$58$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $848,000, adding $5,587 every year, while hoping to spend $48,954 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: 75/9/16 Blend
39$848,000$848,000$848,000$848,000
40$940,259$895,315$882,171$1,007,029
41$984,079$887,099$859,637$1,043,735
42$1,030,727$876,839$834,707$1,077,341
43$1,080,442$864,384$807,250$1,112,860
44$1,133,481$849,574$777,128$1,150,468
45$1,190,130$832,237$744,195$1,190,361
46$1,250,700$812,193$708,302$1,232,754
47$1,315,531$789,250$669,291$1,277,886
48$1,385,000$763,208$626,996$1,326,020
49$1,459,515$733,850$581,246$1,377,446
50$1,539,528$700,952$531,860$1,432,486
51$1,625,534$664,272$478,651$1,491,495
52$1,718,075$623,558$421,422$1,554,866
53$1,817,747$578,541$359,969$1,623,032
54$1,925,205$528,937$294,076$1,696,473
55$2,041,169$474,448$223,520$1,775,717
56$2,166,428$414,756$148,068$1,861,350
57$2,301,851$349,526$67,475$1,954,017
58$2,448,392$278,405$0$2,054,432
59$2,607,100$201,019$0$2,166,547
60$2,779,130$116,974$0$2,300,568
61$2,965,748$25,853$0$2,445,972
62$3,168,351$0$0$2,603,869
63$3,388,472$0$0$2,782,693
64$3,627,800$0$0$2,979,934
65$3,888,191$0$0$3,194,566
66$4,171,688$0$0$3,428,277
67$4,480,539$0$0$3,682,924
68$4,817,218$0$0$3,960,552
69$5,184,447$0$0$4,263,409
70$5,585,224$0$0$4,593,973
71$6,022,847$0$0$4,954,969
72$6,500,947$0$0$5,349,397
73$7,023,523$0$0$5,780,561
74$7,594,974$0$0$6,252,098
75$8,220,148$0$0$6,768,012
76$8,904,380$0$0$7,332,712
77$9,653,545$0$0$7,951,055
78$10,474,115$0$0$8,628,386
79$11,373,213$0$0$9,370,594
80$12,358,688$0$0$10,184,164
81$13,439,182$0$0$11,076,238
82$14,624,213$0$0$12,054,681
83$15,924,265$0$0$13,128,160
84$17,350,887$0$0$14,306,215
85$18,916,798$0$0$15,599,361
86$20,636,010$0$0$17,019,175
87$22,523,958$0$0$18,578,414
88$24,597,642$0$0$20,291,129
89$26,875,794$0$0$22,172,799
90$29,379,048$0$0$24,240,476
91$32,130,133$0$0$26,512,947
92$35,154,094$0$0$29,010,909
93$38,478,519$0$0$31,757,162
94$42,133,805$0$0$34,776,827
95$46,153,440$0$0$38,097,583
96$50,574,320$0$0$41,749,921
97$55,437,097$0$0$45,767,439
98$60,786,559$0$0$50,187,153
99$66,672,056$0$0$55,049,848
100$73,147,958$0$0$60,400,461