Can I retire at age 40 with 850,000?

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 $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%11.5%
1 years$70,192$69,567$68,957$68,362$67,780$67,353
2 years$34,749$34,101$33,474$32,866$32,276$31,845
3 years$22,936$22,286$21,660$21,058$20,477$20,056
4 years$17,030$16,382$15,763$15,171$14,605$14,196
5 years$13,488$12,844$12,233$11,653$11,102$10,708
6 years$11,127$10,488$9,886$9,319$8,785$8,405
7 years$9,442$8,808$8,215$7,661$7,144$6,779
8 years$8,178$7,550$6,967$6,427$5,927$5,577
9 years$7,196$6,574$6,001$5,474$4,991$4,656
10 years$6,410$5,794$5,232$4,719$4,253$3,932
11 years$5,768$5,158$4,606$4,107$3,658$3,351
12 years$5,234$4,630$4,088$3,602$3,170$2,877
13 years$4,781$4,184$3,652$3,180$2,764$2,485
14 years$4,394$3,803$3,281$2,823$2,423$2,157
15 years$4,059$3,474$2,963$2,518$2,133$1,881
16 years$3,766$3,188$2,686$2,254$1,885$1,646
17 years$3,507$2,936$2,444$2,026$1,672$1,444
18 years$3,278$2,713$2,231$1,825$1,486$1,271
19 years$3,073$2,514$2,043$1,649$1,325$1,121
20 years$2,889$2,336$1,875$1,494$1,183$990
21 years$2,722$2,176$1,724$1,356$1,059$877
22 years$2,571$2,031$1,589$1,233$949$777
23 years$2,433$1,900$1,467$1,123$852$690
24 years$2,307$1,780$1,357$1,024$766$613
25 years$2,191$1,670$1,257$935$689$545
26 years$2,085$1,570$1,166$855$621$486
27 years$1,986$1,478$1,082$783$560$433
28 years$1,894$1,392$1,006$717$505$386
29 years$1,809$1,313$936$658$456$344
30 years$1,730$1,240$872$603$412$307
31 years$1,656$1,173$813$554$373$275
32 years$1,587$1,109$759$509$337$245
33 years$1,522$1,051$708$468$305$219
34 years$1,461$996$662$431$276$196
35 years$1,404$945$619$397$250$175
36 years$1,350$897$579$365$227$157
37 years$1,299$851$542$337$205$141
38 years$1,251$809$507$310$186$126
39 years$1,205$769$475$286$169$113
40 years$1,162$732$446$264$153$101
41 years$1,121$697$418$243$139$90
42 years$1,082$664$392$225$126$81
43 years$1,045$632$368$207$114$72
44 years$1,010$603$345$192$104$65
45 years$976$575$324$177$94$58
46 years$944$548$304$163$86$52
47 years$914$523$286$151$78$47
48 years$885$500$269$139$71$42
49 years$857$477$253$129$64$38
50 years$830$456$238$119$58$34

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $850,000, adding $4,330 every year, while hoping to spend $24,879 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: 74/6/20 Blend
39$850,000$850,000$850,000$850,000
40$941,166$896,116$882,941$1,006,028
41$1,010,694$913,555$886,049$1,067,100
42$1,086,480$931,014$888,427$1,130,563
43$1,169,136$948,469$890,024$1,199,469
44$1,259,336$965,892$890,787$1,274,355
45$1,357,821$983,253$890,662$1,355,812
46$1,465,407$1,000,521$889,587$1,444,492
47$1,582,994$1,017,662$887,504$1,541,112
48$1,711,570$1,034,638$884,345$1,646,465
49$1,852,224$1,051,410$880,046$1,761,421
50$2,006,157$1,067,935$874,533$1,886,942
51$2,174,689$1,084,167$867,734$2,024,086
52$2,359,274$1,100,058$859,569$2,174,020
53$2,561,513$1,115,554$849,959$2,338,031
54$2,783,172$1,130,600$838,816$2,517,536
55$3,026,191$1,145,136$826,052$2,714,097
56$3,292,711$1,159,096$811,574$2,929,434
57$3,585,089$1,172,413$795,283$3,165,446
58$3,905,920$1,185,013$777,076$3,424,223
59$4,258,062$1,196,817$756,847$3,708,070
60$4,644,666$1,207,743$734,483$4,019,527
61$5,069,200$1,217,700$709,866$4,361,393
62$5,535,486$1,226,596$682,875$4,736,752
63$6,047,735$1,234,327$653,380$5,149,007
64$6,610,582$1,240,788$621,247$5,601,903
65$7,229,139$1,245,864$586,336$6,099,572
66$7,909,033$1,249,433$548,500$6,646,565
67$8,656,466$1,251,367$507,586$7,247,901
68$9,478,269$1,251,528$463,434$7,909,108
69$10,381,970$1,249,770$415,876$8,636,281
70$11,375,861$1,245,939$364,738$9,436,137
71$12,469,080$1,239,871$309,838$10,316,079
72$13,671,692$1,231,390$250,984$11,284,267
73$14,994,790$1,220,314$187,977$12,349,692
74$16,450,594$1,206,445$120,610$13,522,265
75$18,052,571$1,189,577$48,666$14,812,909
76$19,815,555$1,169,488$0$16,233,663
77$21,755,894$1,145,946$0$17,803,793
78$23,891,602$1,118,703$0$19,543,396
79$26,242,525$1,087,499$0$21,458,243
80$28,830,532$1,052,057$0$23,566,151
81$31,679,721$1,012,082$0$25,886,752
82$34,816,644$967,266$0$28,441,679
83$38,270,560$917,280$0$31,254,770
84$42,073,708$861,777$0$34,352,295
85$46,261,612$800,390$0$37,763,198
86$50,873,419$732,732$0$41,519,379
87$55,952,263$658,391$0$45,655,987
88$61,545,677$576,935$0$50,211,755
89$67,706,037$487,906$0$55,229,367
90$74,491,059$390,820$0$60,755,856
91$81,964,341$285,165$0$66,843,056
92$90,195,968$170,401$0$73,548,081
93$99,263,164$45,959$0$80,933,873
94$109,251,032$0$0$89,069,792
95$120,253,348$0$0$98,038,130
96$132,373,450$0$0$107,921,009
97$145,725,210$0$0$118,808,256
98$160,434,116$0$0$130,802,200
99$176,638,444$0$0$144,015,604
100$194,490,576$0$0$158,572,731