Can I retire at age 40 with 855,000?

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 $855,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$70,605$69,976$69,363$68,764$68,179$67,551
2 years$34,953$34,302$33,671$33,059$32,466$31,834
3 years$23,071$22,417$21,787$21,182$20,598$19,980
4 years$17,130$16,479$15,856$15,260$14,691$14,093
5 years$13,567$12,920$12,305$11,721$11,168$10,591
6 years$11,193$10,550$9,944$9,374$8,836$8,282
7 years$9,497$8,860$8,264$7,707$7,186$6,654
8 years$8,226$7,594$7,008$6,465$5,962$5,452
9 years$7,238$6,612$6,036$5,507$5,021$4,533
10 years$6,448$5,828$5,262$4,747$4,278$3,812
11 years$5,802$5,189$4,633$4,131$3,679$3,235
12 years$5,264$4,657$4,112$3,624$3,188$2,765
13 years$4,810$4,209$3,673$3,199$2,780$2,378
14 years$4,420$3,826$3,301$2,840$2,437$2,055
15 years$4,083$3,495$2,980$2,533$2,146$1,783
16 years$3,788$3,206$2,702$2,268$1,897$1,553
17 years$3,528$2,953$2,459$2,037$1,682$1,356
18 years$3,297$2,729$2,244$1,836$1,495$1,187
19 years$3,091$2,529$2,055$1,659$1,333$1,042
20 years$2,906$2,350$1,886$1,503$1,190$916
21 years$2,738$2,189$1,734$1,364$1,065$807
22 years$2,586$2,043$1,599$1,240$955$711
23 years$2,448$1,911$1,476$1,129$857$628
24 years$2,321$1,790$1,365$1,030$770$555
25 years$2,204$1,680$1,264$941$693$491
26 years$2,097$1,579$1,173$860$624$435
27 years$1,998$1,486$1,089$787$563$386
28 years$1,906$1,400$1,012$721$508$342
29 years$1,820$1,321$942$661$459$303
30 years$1,740$1,248$877$607$414$269
31 years$1,666$1,179$818$557$375$239
32 years$1,596$1,116$763$512$339$212
33 years$1,531$1,057$713$471$307$189
34 years$1,470$1,002$666$433$278$168
35 years$1,412$950$622$399$252$149
36 years$1,358$902$582$368$228$133
37 years$1,307$856$545$339$207$118
38 years$1,258$814$510$312$187$105
39 years$1,212$774$478$288$170$94
40 years$1,169$736$448$265$154$83
41 years$1,128$701$420$245$140$74
42 years$1,089$668$394$226$127$66
43 years$1,051$636$370$209$115$59
44 years$1,016$606$347$193$104$52
45 years$982$578$326$178$95$47
46 years$950$552$306$164$86$42
47 years$919$526$288$152$78$37
48 years$890$502$270$140$71$33
49 years$862$480$254$130$64$29
50 years$835$458$239$120$59$26

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $855,000, adding $6,479 every year, while hoping to spend $48,851 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: 49/25/26 Blend
39$855,000$855,000$855,000$855,000
40$948,893$903,578$890,326$988,112
41$993,703$895,876$868,174$1,008,498
42$1,041,446$886,160$843,644$1,025,255
43$1,092,371$874,279$816,603$1,042,490
44$1,146,747$860,073$786,914$1,060,273
45$1,204,873$843,374$754,433$1,078,680
46$1,267,075$824,004$719,011$1,097,801
47$1,333,709$801,772$680,490$1,117,737
48$1,405,167$776,480$638,707$1,138,602
49$1,481,880$747,913$593,489$1,160,528
50$1,564,320$715,848$544,659$1,183,662
51$1,653,003$680,048$492,028$1,208,172
52$1,748,500$640,261$435,402$1,234,247
53$1,851,435$596,221$374,575$1,262,099
54$1,962,493$547,648$309,336$1,291,968
55$2,082,430$494,245$239,460$1,324,123
56$2,212,072$435,697$164,716$1,358,868
57$2,352,330$371,674$84,862$1,396,542
58$2,504,206$301,824$0$1,437,525
59$2,668,799$225,777$0$1,482,343
60$2,847,319$143,143$0$1,556,504
61$3,041,097$53,508$0$1,637,049
62$3,251,595$0$0$1,724,655
63$3,480,424$0$0$1,832,054
64$3,729,355$0$0$1,964,981
65$4,000,335$0$0$2,109,768
66$4,295,508$0$0$2,267,570
67$4,617,234$0$0$2,439,660
68$4,968,109$0$0$2,627,439
69$5,350,991$0$0$2,832,447
70$5,769,025$0$0$3,056,382
71$6,225,673$0$0$3,301,112
72$6,724,748$0$0$3,568,693
73$7,270,447$0$0$3,861,389
74$7,867,390$0$0$4,181,695
75$8,520,665$0$0$4,532,354
76$9,235,874$0$0$4,916,391
77$10,019,186$0$0$5,337,134
78$10,877,396$0$0$5,798,250
79$11,817,986$0$0$6,303,776
80$12,849,195$0$0$6,858,161
81$13,980,099$0$0$7,466,302
82$15,220,694$0$0$8,133,594
83$16,581,991$0$0$8,865,981
84$18,076,117$0$0$9,670,008
85$19,716,430$0$0$10,552,887
86$21,517,647$0$0$11,522,560
87$23,495,978$0$0$12,587,778
88$25,669,279$0$0$13,758,180
89$28,057,224$0$0$15,044,387
90$30,681,484$0$0$16,458,098
91$33,565,935$0$0$18,012,201
92$36,736,880$0$0$19,720,897
93$40,223,299$0$0$21,599,830
94$44,057,120$0$0$23,666,238
95$48,273,518$0$0$25,939,112
96$52,911,249$0$0$28,439,374
97$58,013,016$0$0$31,190,079
98$63,625,864$0$0$34,216,627
99$69,801,631$0$0$37,547,006
100$76,597,433$0$0$41,212,052