Can I retire at age 40 with 854,000?

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 $854,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$70,523$69,894$69,281$68,683$68,099$65,972
2 years$34,912$34,262$33,632$33,021$32,428$30,304
3 years$23,044$22,391$21,762$21,157$20,574$18,519
4 years$17,110$16,459$15,837$15,242$14,673$12,704
5 years$13,551$12,904$12,290$11,708$11,154$9,276
6 years$11,180$10,537$9,932$9,363$8,826$7,040
7 years$9,486$8,849$8,254$7,697$7,178$5,484
8 years$8,217$7,585$7,000$6,457$5,955$4,352
9 years$7,230$6,605$6,029$5,500$5,015$3,501
10 years$6,441$5,822$5,256$4,741$4,273$2,846
11 years$5,795$5,183$4,628$4,126$3,675$2,333
12 years$5,258$4,652$4,107$3,619$3,185$1,924
13 years$4,804$4,204$3,669$3,195$2,777$1,595
14 years$4,415$3,821$3,297$2,836$2,434$1,328
15 years$4,078$3,491$2,977$2,530$2,143$1,109
16 years$3,784$3,203$2,699$2,265$1,894$929
17 years$3,524$2,949$2,456$2,035$1,680$780
18 years$3,294$2,725$2,242$1,834$1,493$656
19 years$3,088$2,526$2,052$1,657$1,331$553
20 years$2,902$2,347$1,883$1,501$1,189$466
21 years$2,735$2,186$1,732$1,362$1,064$394
22 years$2,583$2,041$1,597$1,239$954$333
23 years$2,445$1,909$1,474$1,128$856$282
24 years$2,318$1,788$1,363$1,029$770$238
25 years$2,202$1,678$1,263$940$692$202
26 years$2,094$1,577$1,171$859$624$171
27 years$1,995$1,484$1,088$786$562$145
28 years$1,903$1,399$1,011$720$507$123
29 years$1,818$1,320$941$661$458$104
30 years$1,738$1,246$876$606$414$89
31 years$1,664$1,178$817$557$374$75
32 years$1,595$1,115$762$512$339$64
33 years$1,529$1,056$712$471$306$54
34 years$1,468$1,001$665$433$277$46
35 years$1,411$949$622$399$251$39
36 years$1,356$901$582$367$228$33
37 years$1,305$855$544$338$206$28
38 years$1,257$813$510$312$187$24
39 years$1,211$773$478$287$170$20
40 years$1,168$736$448$265$154$17
41 years$1,126$700$420$245$140$15
42 years$1,087$667$394$226$127$12
43 years$1,050$635$369$208$115$11
44 years$1,015$606$347$192$104$9
45 years$981$577$326$178$95$8
46 years$949$551$306$164$86$6
47 years$918$526$287$152$78$6
48 years$889$502$270$140$71$5
49 years$861$479$254$130$64$4
50 years$834$458$239$120$59$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $854,000, adding $5,705 every year, while hoping to spend $55,757 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: 73/21/6 Blend
39$854,000$854,000$854,000$854,000
40$946,993$901,731$888,494$1,015,045
41$984,261$886,590$858,933$1,045,515
42$1,023,462$868,840$826,514$1,071,292
43$1,064,734$848,291$791,081$1,097,937
44$1,108,227$824,748$752,472$1,125,518
45$1,154,105$798,000$710,519$1,154,109
46$1,202,548$767,826$665,045$1,183,796
47$1,253,749$733,991$615,866$1,214,672
48$1,307,922$696,247$562,788$1,246,841
49$1,365,299$654,332$505,611$1,280,421
50$1,426,134$607,968$444,122$1,315,541
51$1,490,703$556,862$378,104$1,352,347
52$1,559,309$500,704$307,325$1,390,999
53$1,632,286$439,165$231,548$1,431,678
54$1,709,994$371,899$150,520$1,474,584
55$1,792,832$298,541$63,981$1,519,940
56$1,881,235$218,703$0$1,567,995
57$1,975,679$131,978$0$1,620,840
58$2,076,687$37,933$0$1,681,456
59$2,184,832$0$0$1,746,102
60$2,300,741$0$0$1,829,943
61$2,425,105$0$0$1,929,329
62$2,558,679$0$0$2,036,105
63$2,702,293$0$0$2,150,936
64$2,856,859$0$0$2,274,555
65$3,023,376$0$0$2,407,766
66$3,202,945$0$0$2,551,453
67$3,396,772$0$0$2,706,585
68$3,606,184$0$0$2,874,230
69$3,832,638$0$0$3,055,560
70$4,077,738$0$0$3,251,862
71$4,343,244$0$0$3,464,552
72$4,631,093$0$0$3,695,189
73$4,943,416$0$0$3,945,484
74$5,282,554$0$0$4,217,321
75$5,651,083$0$0$4,512,772
76$6,051,838$0$0$4,834,114
77$6,487,938$0$0$5,183,857
78$6,962,811$0$0$5,564,758
79$7,480,235$0$0$5,979,853
80$8,044,363$0$0$6,432,484
81$8,659,769$0$0$6,926,329
82$9,331,485$0$0$7,465,434
83$10,065,050$0$0$8,054,255
84$10,866,565$0$0$8,697,697
85$11,742,743$0$0$9,401,160
86$12,700,976$0$0$10,170,590
87$13,749,405$0$0$11,012,534
88$14,896,990$0$0$11,934,198
89$16,153,600$0$0$12,943,521
90$17,530,105$0$0$14,049,245
91$19,038,471$0$0$15,260,995
92$20,691,880$0$0$16,589,373
93$22,504,848$0$0$18,046,057
94$24,493,365$0$0$19,643,906
95$26,675,040$0$0$21,397,086
96$29,069,272$0$0$23,321,199
97$31,697,427$0$0$25,433,433
98$34,583,041$0$0$27,752,719
99$37,752,041$0$0$30,299,912
100$41,232,987$0$0$33,097,985