Can I retire at age 40 with 851,000?

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 $851,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.5%
1 years$70,275$69,649$69,038$68,442$67,860$67,151
2 years$34,789$34,142$33,514$32,905$32,314$31,601
3 years$22,963$22,312$21,686$21,082$20,501$19,805
4 years$17,050$16,402$15,782$15,189$14,622$13,948
5 years$13,504$12,859$12,247$11,666$11,115$10,466
6 years$11,140$10,500$9,897$9,330$8,795$8,171
7 years$9,453$8,818$8,225$7,670$7,153$6,554
8 years$8,188$7,559$6,975$6,435$5,934$5,361
9 years$7,204$6,581$6,008$5,481$4,997$4,449
10 years$6,418$5,801$5,238$4,725$4,258$3,735
11 years$5,775$5,164$4,611$4,112$3,662$3,164
12 years$5,240$4,635$4,092$3,607$3,173$2,699
13 years$4,787$4,189$3,656$3,184$2,767$2,316
14 years$4,399$3,808$3,285$2,826$2,426$1,998
15 years$4,064$3,478$2,966$2,521$2,136$1,730
16 years$3,770$3,191$2,689$2,257$1,888$1,503
17 years$3,512$2,939$2,447$2,028$1,674$1,310
18 years$3,282$2,716$2,234$1,828$1,488$1,145
19 years$3,077$2,517$2,045$1,651$1,326$1,002
20 years$2,892$2,339$1,877$1,496$1,185$879
21 years$2,726$2,179$1,726$1,357$1,060$773
22 years$2,574$2,034$1,591$1,234$950$680
23 years$2,436$1,902$1,469$1,124$853$599
24 years$2,310$1,782$1,359$1,025$767$528
25 years$2,194$1,672$1,258$936$690$466
26 years$2,087$1,572$1,167$856$622$412
27 years$1,988$1,479$1,084$784$560$364
28 years$1,897$1,394$1,007$718$506$322
29 years$1,812$1,315$938$658$457$285
30 years$1,732$1,242$873$604$413$252
31 years$1,658$1,174$814$555$373$224
32 years$1,589$1,111$760$510$337$198
33 years$1,524$1,052$709$469$305$176
34 years$1,463$997$663$431$276$156
35 years$1,406$946$620$397$250$138
36 years$1,352$898$580$366$227$123
37 years$1,301$852$542$337$206$109
38 years$1,252$810$508$311$186$97
39 years$1,207$770$476$286$169$86
40 years$1,163$733$446$264$153$76
41 years$1,122$698$418$244$139$68
42 years$1,083$664$392$225$126$60
43 years$1,046$633$368$208$115$53
44 years$1,011$603$346$192$104$47
45 years$977$575$325$177$94$42
46 years$945$549$305$164$86$37
47 years$915$524$286$151$78$33
48 years$886$500$269$140$71$30
49 years$858$478$253$129$64$26
50 years$831$456$238$119$58$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $851,000, adding $3,219 every year, while hoping to spend $36,937 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: 38/36/26 Blend
39$851,000$851,000$851,000$851,000
40$941,122$896,019$882,829$969,486
41$997,816$900,624$873,103$995,127
42$1,059,055$904,216$861,813$1,019,175
43$1,125,263$906,707$848,868$1,044,446
44$1,196,907$908,002$834,173$1,071,074
45$1,274,500$908,003$817,626$1,099,209
46$1,358,606$906,602$799,123$1,129,020
47$1,449,845$903,687$778,555$1,160,693
48$1,548,899$899,138$755,807$1,194,440
49$1,656,519$892,828$730,759$1,230,493
50$1,773,530$884,622$703,285$1,269,114
51$1,900,839$874,377$673,254$1,310,594
52$2,039,445$861,942$640,529$1,355,258
53$2,190,448$847,157$604,966$1,403,465
54$2,355,057$829,851$566,416$1,455,620
55$2,534,603$809,845$524,721$1,512,168
56$2,730,552$786,947$479,719$1,573,609
57$2,944,517$760,955$431,238$1,640,494
58$3,178,273$731,657$379,099$1,713,440
59$3,433,774$698,826$323,116$1,793,128
60$3,713,173$662,222$263,095$1,880,319
61$4,018,839$621,593$198,831$1,975,853
62$4,353,381$576,672$130,112$2,080,666
63$4,719,672$527,175$56,717$2,195,795
64$5,120,875$472,803$0$2,322,388
65$5,560,474$413,240$0$2,467,716
66$6,042,307$348,153$0$2,644,379
67$6,570,598$277,189$0$2,838,260
68$7,150,003$199,975$0$3,051,167
69$7,785,646$116,117$0$3,285,099
70$8,483,176$25,200$0$3,542,262
71$9,248,810$0$0$3,825,094
72$10,089,399$0$0$4,165,292
73$11,012,491$0$0$4,549,964
74$12,026,399$0$0$4,972,606
75$13,140,280$0$0$5,437,053
76$14,364,223$0$0$5,947,526
77$15,709,343$0$0$6,508,678
78$17,187,884$0$0$7,125,634
79$18,813,337$0$0$7,804,042
80$20,600,562$0$0$8,550,122
81$22,565,935$0$0$9,370,730
82$24,727,496$0$0$10,273,417
83$27,105,121$0$0$11,266,505
84$29,720,709$0$0$12,359,161
85$32,598,389$0$0$13,561,488
86$35,764,748$0$0$14,884,616
87$39,249,076$0$0$16,340,808
88$43,083,650$0$0$17,943,577
89$47,304,032$0$0$19,707,814
90$51,949,408$0$0$21,649,923
91$57,062,953$0$0$23,787,982
92$62,692,244$0$0$26,141,911
93$68,889,701$0$0$28,733,659
94$75,713,089$0$0$31,587,411
95$83,226,056$0$0$34,729,818
96$91,498,738$0$0$38,190,246
97$100,608,419$0$0$42,001,054
98$110,640,256$0$0$46,197,899
99$121,688,088$0$0$50,820,074
100$133,855,319$0$0$55,910,876