Can I retire at age 40 with 860,000?

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 $860,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$71,018$70,385$69,768$69,166$68,578$67,276
2 years$35,157$34,503$33,868$33,253$32,656$31,349
3 years$23,205$22,548$21,915$21,305$20,718$19,448
4 years$17,231$16,575$15,948$15,349$14,776$13,552
5 years$13,647$12,995$12,377$11,790$11,233$10,057
6 years$11,258$10,611$10,002$9,428$8,888$7,763
7 years$9,553$8,911$8,312$7,752$7,228$6,155
8 years$8,274$7,639$7,049$6,503$5,997$4,973
9 years$7,280$6,651$6,071$5,539$5,050$4,077
10 years$6,486$5,862$5,293$4,774$4,303$3,379
11 years$5,836$5,219$4,660$4,155$3,701$2,825
12 years$5,295$4,684$4,136$3,645$3,207$2,378
13 years$4,838$4,233$3,695$3,218$2,796$2,013
14 years$4,446$3,848$3,320$2,856$2,451$1,712
15 years$4,107$3,515$2,997$2,547$2,158$1,461
16 years$3,810$3,225$2,718$2,281$1,908$1,251
17 years$3,549$2,970$2,473$2,049$1,691$1,074
18 years$3,317$2,745$2,257$1,847$1,504$925
19 years$3,109$2,544$2,067$1,669$1,340$797
20 years$2,923$2,364$1,897$1,511$1,197$689
21 years$2,754$2,202$1,745$1,372$1,071$596
22 years$2,601$2,055$1,608$1,247$960$516
23 years$2,462$1,922$1,485$1,136$862$447
24 years$2,334$1,801$1,373$1,036$775$388
25 years$2,217$1,690$1,272$946$697$337
26 years$2,109$1,588$1,179$865$628$293
27 years$2,009$1,495$1,095$792$566$254
28 years$1,917$1,409$1,018$725$511$221
29 years$1,831$1,329$947$665$461$192
30 years$1,751$1,255$882$611$417$168
31 years$1,676$1,186$823$561$377$146
32 years$1,606$1,123$768$515$341$127
33 years$1,540$1,063$717$474$309$111
34 years$1,479$1,008$670$436$279$96
35 years$1,421$956$626$401$253$84
36 years$1,366$907$586$370$229$73
37 years$1,314$861$548$341$208$64
38 years$1,266$819$513$314$188$56
39 years$1,219$779$481$289$171$49
40 years$1,176$741$451$267$155$42
41 years$1,134$705$423$246$141$37
42 years$1,095$671$397$227$128$32
43 years$1,057$640$372$210$116$28
44 years$1,022$610$349$194$105$25
45 years$988$582$328$179$95$21
46 years$955$555$308$165$87$19
47 years$925$529$289$153$79$16
48 years$895$505$272$141$71$14
49 years$867$483$256$130$65$12
50 years$840$461$240$121$59$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $860,000, adding $6,515 every year, while hoping to spend $49,926 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: 46/46/8 Blend
39$860,000$860,000$860,000$860,000
40$954,440$908,860$895,530$995,944
41$998,672$900,273$872,410$1,016,628
42$1,045,743$889,593$846,841$1,033,342
43$1,095,888$876,663$818,690$1,050,319
44$1,149,368$861,318$787,816$1,067,601
45$1,206,467$843,386$754,070$1,085,234
46$1,267,495$822,681$717,300$1,103,276
47$1,332,794$799,007$677,345$1,121,791
48$1,402,738$772,157$634,035$1,140,856
49$1,477,737$741,913$587,195$1,160,558
50$1,558,242$708,042$536,642$1,180,998
51$1,644,746$670,299$482,183$1,202,294
52$1,737,792$628,426$423,617$1,224,577
53$1,837,975$582,147$360,737$1,248,001
54$1,945,949$531,172$293,322$1,272,739
55$2,062,432$475,196$221,144$1,298,989
56$2,188,213$413,894$143,965$1,326,974
57$2,324,159$346,923$61,537$1,356,949
58$2,471,224$273,922$0$1,389,201
59$2,630,453$194,509$0$1,426,310
60$2,803,000$108,281$0$1,472,138
61$2,990,131$14,811$0$1,521,863
62$3,193,237$0$0$1,575,974
63$3,413,851$0$0$1,678,728
64$3,653,656$0$0$1,798,658
65$3,914,508$0$0$1,929,205
66$4,198,443$0$0$2,071,401
67$4,507,707$0$0$2,226,381
68$4,844,767$0$0$2,395,396
69$5,212,342$0$0$2,579,821
70$5,613,422$0$0$2,781,170
71$6,051,299$0$0$3,001,111
72$6,529,597$0$0$3,241,477
73$7,052,304$0$0$3,504,290
74$7,623,814$0$0$3,791,774
75$8,248,960$0$0$4,106,377
76$8,933,069$0$0$4,450,797
77$9,682,002$0$0$4,828,003
78$10,502,216$0$0$5,241,266
79$11,400,820$0$0$5,694,187
80$12,385,644$0$0$6,190,733
81$13,465,311$0$0$6,735,272
82$14,649,319$0$0$7,332,617
83$15,948,128$0$0$7,988,066
84$17,373,259$0$0$8,707,459
85$18,937,405$0$0$9,497,224
86$20,654,543$0$0$10,364,447
87$22,540,073$0$0$11,316,928
88$24,610,959$0$0$12,363,265
89$26,885,886$0$0$13,512,927
90$29,385,442$0$0$14,776,346
91$32,132,304$0$0$16,165,014
92$35,151,456$0$0$17,691,592
93$38,470,424$0$0$19,370,031
94$42,119,533$0$0$21,215,698
95$46,132,192$0$0$23,245,526
96$50,545,211$0$0$25,478,170
97$55,399,146$0$0$27,934,184
98$60,738,679$0$0$30,636,214
99$66,613,042$0$0$33,609,213
100$73,076,479$0$0$36,880,673