Can I retire at age 40 with 850,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $850,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.7%
1 years$70,192$69,567$68,957$68,362$67,780$67,017
2 years$34,749$34,101$33,474$32,866$32,276$31,508
3 years$22,936$22,286$21,660$21,058$20,477$19,727
4 years$17,030$16,382$15,763$15,171$14,605$13,879
5 years$13,488$12,844$12,233$11,653$11,102$10,403
6 years$11,127$10,488$9,886$9,319$8,785$8,113
7 years$9,442$8,808$8,215$7,661$7,144$6,501
8 years$8,178$7,550$6,967$6,427$5,927$5,311
9 years$7,196$6,574$6,001$5,474$4,991$4,403
10 years$6,410$5,794$5,232$4,719$4,253$3,692
11 years$5,768$5,158$4,606$4,107$3,658$3,123
12 years$5,234$4,630$4,088$3,602$3,170$2,661
13 years$4,781$4,184$3,652$3,180$2,764$2,281
14 years$4,394$3,803$3,281$2,823$2,423$1,964
15 years$4,059$3,474$2,963$2,518$2,133$1,699
16 years$3,766$3,188$2,686$2,254$1,885$1,474
17 years$3,507$2,936$2,444$2,026$1,672$1,283
18 years$3,278$2,713$2,231$1,825$1,486$1,119
19 years$3,073$2,514$2,043$1,649$1,325$979
20 years$2,889$2,336$1,875$1,494$1,183$857
21 years$2,722$2,176$1,724$1,356$1,059$752
22 years$2,571$2,031$1,589$1,233$949$661
23 years$2,433$1,900$1,467$1,123$852$581
24 years$2,307$1,780$1,357$1,024$766$512
25 years$2,191$1,670$1,257$935$689$451
26 years$2,085$1,570$1,166$855$621$398
27 years$1,986$1,478$1,082$783$560$351
28 years$1,894$1,392$1,006$717$505$310
29 years$1,809$1,313$936$658$456$274
30 years$1,730$1,240$872$603$412$242
31 years$1,656$1,173$813$554$373$214
32 years$1,587$1,109$759$509$337$190
33 years$1,522$1,051$708$468$305$168
34 years$1,461$996$662$431$276$149
35 years$1,404$945$619$397$250$132
36 years$1,350$897$579$365$227$117
37 years$1,299$851$542$337$205$103
38 years$1,251$809$507$310$186$92
39 years$1,205$769$475$286$169$81
40 years$1,162$732$446$264$153$72
41 years$1,121$697$418$243$139$64
42 years$1,082$664$392$225$126$57
43 years$1,045$632$368$207$114$50
44 years$1,010$603$345$192$104$44
45 years$976$575$324$177$94$39
46 years$944$548$304$163$86$35
47 years$914$523$286$151$78$31
48 years$885$500$269$139$71$27
49 years$857$477$253$129$64$24
50 years$830$456$238$119$58$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $850,000, adding $2,156 every year, while hoping to spend $33,603 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: 62/15/23 Blend
39$850,000$850,000$850,000$850,000
40$938,924$893,874$880,699$991,334
41$998,941$901,920$874,449$1,035,094
42$1,063,953$909,235$866,863$1,078,949
43$1,134,435$915,746$857,862$1,126,081
44$1,210,908$921,378$847,361$1,176,814
45$1,293,945$926,050$835,272$1,231,506
46$1,384,177$929,676$821,503$1,290,554
47$1,482,297$932,164$805,958$1,354,393
48$1,589,069$933,418$788,535$1,423,506
49$1,705,333$933,334$769,129$1,498,425
50$1,832,011$931,802$747,630$1,579,739
51$1,970,123$928,707$723,922$1,668,096
52$2,120,786$923,924$697,884$1,764,213
53$2,285,232$917,322$669,389$1,868,881
54$2,464,818$908,763$638,306$1,982,974
55$2,661,036$898,100$604,496$2,107,455
56$2,875,530$885,175$567,814$2,243,389
57$3,110,109$869,823$528,111$2,391,950
58$3,366,765$851,869$485,228$2,554,434
59$3,647,692$831,128$439,000$2,732,272
60$3,955,305$807,402$389,255$2,927,042
61$4,292,265$780,483$335,813$3,140,486
62$4,661,500$750,151$278,488$3,374,527
63$5,066,238$716,172$217,081$3,631,285
64$5,510,030$678,301$151,389$3,913,102
65$5,996,790$636,275$81,198$4,222,559
66$6,530,830$589,820$6,285$4,562,505
67$7,116,896$538,642$0$4,936,082
68$7,760,218$482,434$0$5,364,835
69$8,466,557$420,871$0$5,837,332
70$9,242,259$353,606$0$6,356,311
71$10,094,314$280,278$0$6,926,490
72$11,030,423$200,500$0$7,553,069
73$12,059,070$113,868$0$8,241,780
74$13,189,600$19,953$0$8,998,942
75$14,432,310$0$0$9,831,516
76$15,798,544$0$0$10,760,664
77$17,300,799$0$0$11,786,009
78$18,952,844$0$0$12,913,663
79$20,769,850$0$0$14,153,990
80$22,768,531$0$0$15,518,409
81$24,967,302$0$0$17,019,502
82$27,386,453$0$0$18,671,129
83$30,048,342$0$0$20,488,566
84$32,977,600$0$0$22,488,639
85$36,201,368$0$0$24,689,893
86$39,749,553$0$0$27,112,758
87$43,655,105$0$0$29,779,747
88$47,954,333$0$0$32,715,666
89$52,687,244$0$0$35,947,848
90$57,897,921$0$0$39,506,410
91$63,634,940$0$0$43,424,540
92$69,951,825$0$0$47,738,807
93$76,907,555$0$0$52,489,505
94$84,567,119$0$0$57,721,036
95$93,002,132$0$0$63,482,328
96$102,291,504$0$0$69,827,295
97$112,522,192$0$0$76,815,346
98$123,790,014$0$0$84,511,947
99$136,200,557$0$0$92,989,236
100$149,870,169$0$0$102,326,706