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%12.9%
1 years$70,605$69,976$69,363$68,764$68,179$67,355
2 years$34,953$34,302$33,671$33,059$32,466$31,637
3 years$23,071$22,417$21,787$21,182$20,598$19,789
4 years$17,130$16,479$15,856$15,260$14,691$13,909
5 years$13,567$12,920$12,305$11,721$11,168$10,414
6 years$11,193$10,550$9,944$9,374$8,836$8,113
7 years$9,497$8,860$8,264$7,707$7,186$6,494
8 years$8,226$7,594$7,008$6,465$5,962$5,299
9 years$7,238$6,612$6,036$5,507$5,021$4,388
10 years$6,448$5,828$5,262$4,747$4,278$3,674
11 years$5,802$5,189$4,633$4,131$3,679$3,105
12 years$5,264$4,657$4,112$3,624$3,188$2,642
13 years$4,810$4,209$3,673$3,199$2,780$2,262
14 years$4,420$3,826$3,301$2,840$2,437$1,945
15 years$4,083$3,495$2,980$2,533$2,146$1,680
16 years$3,788$3,206$2,702$2,268$1,897$1,456
17 years$3,528$2,953$2,459$2,037$1,682$1,265
18 years$3,297$2,729$2,244$1,836$1,495$1,102
19 years$3,091$2,529$2,055$1,659$1,333$962
20 years$2,906$2,350$1,886$1,503$1,190$842
21 years$2,738$2,189$1,734$1,364$1,065$738
22 years$2,586$2,043$1,599$1,240$955$647
23 years$2,448$1,911$1,476$1,129$857$568
24 years$2,321$1,790$1,365$1,030$770$500
25 years$2,204$1,680$1,264$941$693$440
26 years$2,097$1,579$1,173$860$624$387
27 years$1,998$1,486$1,089$787$563$341
28 years$1,906$1,400$1,012$721$508$301
29 years$1,820$1,321$942$661$459$265
30 years$1,740$1,248$877$607$414$234
31 years$1,666$1,179$818$557$375$207
32 years$1,596$1,116$763$512$339$183
33 years$1,531$1,057$713$471$307$161
34 years$1,470$1,002$666$433$278$143
35 years$1,412$950$622$399$252$126
36 years$1,358$902$582$368$228$112
37 years$1,307$856$545$339$207$99
38 years$1,258$814$510$312$187$87
39 years$1,212$774$478$288$170$77
40 years$1,169$736$448$265$154$68
41 years$1,128$701$420$245$140$60
42 years$1,089$668$394$226$127$54
43 years$1,051$636$370$209$115$47
44 years$1,016$606$347$193$104$42
45 years$982$578$326$178$95$37
46 years$950$552$306$164$86$33
47 years$919$526$288$152$78$29
48 years$890$502$270$140$71$26
49 years$862$480$254$130$64$23
50 years$835$458$239$120$59$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $855,000, adding $3,408 every year, while hoping to spend $29,126 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: 31/40/29 Blend
39$855,000$855,000$855,000$855,000
40$945,725$900,410$887,158$966,571
41$1,011,199$913,541$885,888$996,170
42$1,082,376$926,338$883,599$1,025,228
43$1,159,805$938,756$880,227$1,055,941
44$1,244,094$950,743$875,703$1,088,473
45$1,335,908$962,247$869,956$1,123,008
46$1,435,983$973,209$862,911$1,159,751
47$1,545,125$983,568$854,491$1,198,929
48$1,664,224$993,259$844,612$1,240,793
49$1,794,258$1,002,212$833,190$1,285,622
50$1,936,305$1,010,352$820,134$1,333,727
51$2,091,550$1,017,601$805,350$1,385,451
52$2,261,298$1,023,874$788,740$1,441,176
53$2,446,988$1,029,082$770,201$1,501,323
54$2,650,202$1,033,128$749,624$1,566,362
55$2,872,683$1,035,912$726,896$1,636,811
56$3,116,350$1,037,325$701,901$1,713,246
57$3,383,317$1,037,253$674,513$1,796,303
58$3,675,911$1,035,573$644,605$1,886,688
59$3,996,695$1,032,158$612,041$1,985,183
60$4,348,494$1,026,870$576,680$2,092,651
61$4,734,416$1,019,562$538,375$2,210,050
62$5,157,888$1,010,081$496,971$2,338,439
63$5,622,680$998,264$452,308$2,478,991
64$6,132,951$983,936$404,217$2,633,002
65$6,693,277$966,914$352,523$2,801,906
66$7,308,701$947,003$297,043$2,987,289
67$7,984,779$923,996$237,584$3,190,906
68$8,727,631$897,676$173,948$3,414,695
69$9,543,998$867,811$105,924$3,660,801
70$10,441,308$834,156$33,294$3,931,592
71$11,427,744$796,452$0$4,229,688
72$12,512,322$754,426$0$4,571,663
73$13,704,973$707,788$0$4,958,917
74$15,016,642$656,230$0$5,384,747
75$16,459,383$599,430$0$5,853,135
76$18,046,483$537,044$0$6,368,473
77$19,792,576$468,711$0$6,935,611
78$21,713,789$394,049$0$7,559,896
79$23,827,891$312,652$0$8,247,227
80$26,154,459$224,095$0$9,004,113
81$28,715,065$127,927$0$9,837,733
82$31,533,477$23,671$0$10,756,008
83$34,635,886$0$0$11,767,671
84$38,051,149$0$0$12,921,610
85$41,811,065$0$0$14,203,634
86$45,950,671$0$0$15,615,290
87$50,508,576$0$0$17,169,767
88$55,527,322$0$0$18,881,594
89$61,053,786$0$0$20,766,784
90$67,139,623$0$0$22,842,980
91$73,841,755$0$0$25,129,624
92$81,222,901$0$0$27,648,141
93$89,352,176$0$0$30,422,139
94$98,305,741$0$0$33,477,631
95$108,167,518$0$0$36,843,286
96$119,029,986$0$0$40,550,692
97$130,995,051$0$0$44,634,659
98$144,175,009$0$0$49,133,546
99$158,693,605$0$0$54,089,624
100$174,687,198$0$0$59,549,472