Can I retire at age 40 with 856,000?

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 $856,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.2%
1 years$70,688$70,058$69,444$68,844$68,259$65,994
2 years$34,994$34,342$33,711$33,098$32,504$30,245
3 years$23,098$22,443$21,813$21,206$20,622$18,439
4 years$17,151$16,498$15,874$15,278$14,708$12,617
5 years$13,583$12,935$12,319$11,735$11,181$9,188
6 years$11,206$10,562$9,956$9,385$8,847$6,954
7 years$9,508$8,870$8,273$7,716$7,195$5,402
8 years$8,236$7,603$7,016$6,472$5,969$4,274
9 years$7,247$6,620$6,043$5,513$5,027$3,428
10 years$6,456$5,835$5,269$4,752$4,283$2,778
11 years$5,809$5,195$4,638$4,136$3,683$2,270
12 years$5,270$4,663$4,116$3,628$3,192$1,866
13 years$4,815$4,214$3,678$3,203$2,783$1,542
14 years$4,425$3,830$3,304$2,843$2,440$1,279
15 years$4,088$3,499$2,983$2,535$2,148$1,065
16 years$3,792$3,210$2,705$2,270$1,899$889
17 years$3,532$2,956$2,461$2,040$1,684$743
18 years$3,301$2,732$2,247$1,838$1,497$623
19 years$3,095$2,532$2,057$1,661$1,334$523
20 years$2,909$2,353$1,888$1,504$1,192$439
21 years$2,742$2,191$1,736$1,365$1,066$370
22 years$2,589$2,046$1,600$1,241$956$311
23 years$2,451$1,913$1,478$1,131$858$262
24 years$2,324$1,793$1,367$1,031$771$221
25 years$2,207$1,682$1,266$942$694$187
26 years$2,099$1,581$1,174$861$625$157
27 years$2,000$1,488$1,090$788$564$133
28 years$1,908$1,402$1,013$722$509$112
29 years$1,822$1,323$943$662$459$95
30 years$1,742$1,249$878$608$415$80
31 years$1,668$1,181$819$558$375$68
32 years$1,598$1,117$764$513$339$57
33 years$1,533$1,058$713$472$307$48
34 years$1,472$1,003$667$434$278$41
35 years$1,414$951$623$400$252$35
36 years$1,360$903$583$368$228$29
37 years$1,308$857$546$339$207$25
38 years$1,260$815$511$312$188$21
39 years$1,214$775$479$288$170$18
40 years$1,170$737$449$266$154$15
41 years$1,129$702$421$245$140$13
42 years$1,090$668$395$226$127$11
43 years$1,053$637$370$209$115$9
44 years$1,017$607$348$193$105$8
45 years$983$579$326$178$95$6
46 years$951$552$307$165$86$5
47 years$920$527$288$152$78$5
48 years$891$503$271$140$71$4
49 years$863$480$254$130$65$3
50 years$836$459$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 $856,000, adding $4,647 every year, while hoping to spend $43,394 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: 83/8/9 Blend
39$856,000$856,000$856,000$856,000
40$948,105$902,737$889,469$1,025,247
41$998,641$900,801$873,096$1,074,452
42$1,052,877$897,315$854,719$1,122,191
43$1,111,145$892,158$834,227$1,173,285
44$1,173,809$885,200$811,500$1,228,046
45$1,241,269$876,306$786,417$1,286,815
46$1,313,963$865,329$758,846$1,349,970
47$1,392,373$852,117$728,653$1,417,927
48$1,477,029$836,505$695,698$1,491,144
49$1,568,513$818,321$659,831$1,570,124
50$1,667,465$797,382$620,898$1,655,423
51$1,774,587$773,494$578,739$1,747,654
52$1,890,652$746,453$533,184$1,847,489
53$2,016,511$716,040$484,057$1,955,672
54$2,153,096$682,028$431,175$2,073,022
55$2,301,437$644,172$374,344$2,200,439
56$2,462,663$602,217$313,365$2,338,919
57$2,638,019$555,889$248,026$2,489,557
58$2,828,872$504,903$178,110$2,653,559
59$3,036,728$448,954$103,388$2,832,257
60$3,263,243$387,722$23,621$3,027,116
61$3,510,242$320,868$0$3,239,754
62$3,779,730$248,034$0$3,477,857
63$4,073,916$168,841$0$3,740,287
64$4,395,231$82,890$0$4,026,965
65$4,746,353$0$0$4,340,302
66$5,130,228$0$0$4,683,859
67$5,550,100$0$0$5,067,629
68$6,009,541$0$0$5,487,584
69$6,512,485$0$0$5,947,320
70$7,063,264$0$0$6,450,799
71$7,666,647$0$0$7,002,385
72$8,327,888$0$0$7,606,880
73$9,052,771$0$0$8,269,577
74$9,847,668$0$0$8,996,303
75$10,719,598$0$0$9,793,477
76$11,676,290$0$0$10,668,169
77$12,726,258$0$0$11,628,165
78$13,878,881$0$0$12,682,044
79$15,144,490$0$0$13,839,255
80$16,534,464$0$0$15,110,205
81$18,061,341$0$0$16,506,363
82$19,738,931$0$0$18,040,358
83$21,582,448$0$0$19,726,106
84$23,608,653$0$0$21,578,938
85$25,836,012$0$0$23,615,744
86$28,284,869$0$0$25,855,130
87$30,977,637$0$0$28,317,596
88$33,939,011$0$0$31,025,729
89$37,196,197$0$0$34,004,413
90$40,779,171$0$0$37,281,067
91$44,720,961$0$0$40,885,897
92$49,057,956$0$0$44,852,188
93$53,830,252$0$0$49,216,612
94$59,082,026$0$0$54,019,577
95$64,861,955$0$0$59,305,605
96$71,223,674$0$0$65,123,752
97$78,226,281$0$0$71,528,074
98$85,934,895$0$0$78,578,130
99$94,421,268$0$0$86,339,548
100$103,764,462$0$0$94,884,644