Can I retire at age 40 with 861,000?

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 $861,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$71,101$70,467$69,849$69,246$68,657$66,593
2 years$35,198$34,543$33,907$33,291$32,694$30,632
3 years$23,232$22,574$21,940$21,330$20,742$18,747
4 years$17,251$16,594$15,967$15,367$14,794$12,880
5 years$13,663$13,010$12,391$11,803$11,246$9,419
6 years$11,271$10,624$10,014$9,439$8,898$7,160
7 years$9,564$8,922$8,322$7,761$7,237$5,587
8 years$8,284$7,648$7,057$6,510$6,004$4,442
9 years$7,289$6,659$6,078$5,545$5,056$3,580
10 years$6,493$5,869$5,299$4,780$4,308$2,916
11 years$5,843$5,225$4,665$4,160$3,705$2,394
12 years$5,301$4,690$4,140$3,649$3,211$1,979
13 years$4,843$4,238$3,699$3,221$2,800$1,644
14 years$4,451$3,852$3,324$2,860$2,454$1,372
15 years$4,111$3,519$3,001$2,550$2,161$1,148
16 years$3,815$3,229$2,721$2,284$1,910$964
17 years$3,553$2,974$2,476$2,052$1,693$811
18 years$3,321$2,748$2,260$1,849$1,506$684
19 years$3,113$2,547$2,069$1,671$1,342$577
20 years$2,926$2,366$1,899$1,513$1,199$488
21 years$2,758$2,204$1,747$1,373$1,073$413
22 years$2,605$2,058$1,610$1,249$962$350
23 years$2,465$1,924$1,486$1,137$863$297
24 years$2,337$1,803$1,375$1,037$776$252
25 years$2,220$1,692$1,273$947$698$214
26 years$2,112$1,590$1,181$866$629$182
27 years$2,012$1,497$1,096$793$567$154
28 years$1,919$1,410$1,019$726$512$131
29 years$1,833$1,330$949$666$462$112
30 years$1,753$1,256$884$611$417$95
31 years$1,678$1,188$824$561$377$81
32 years$1,608$1,124$769$516$341$69
33 years$1,542$1,064$718$474$309$58
34 years$1,480$1,009$670$437$280$50
35 years$1,422$957$627$402$253$42
36 years$1,367$908$586$370$230$36
37 years$1,316$862$549$341$208$31
38 years$1,267$820$514$314$189$26
39 years$1,221$779$482$290$171$22
40 years$1,177$742$451$267$155$19
41 years$1,136$706$423$247$141$16
42 years$1,096$672$397$228$128$14
43 years$1,059$641$373$210$116$12
44 years$1,023$611$350$194$105$10
45 years$989$582$328$179$96$8
46 years$957$555$308$165$87$7
47 years$926$530$290$153$79$6
48 years$896$506$272$141$72$5
49 years$868$483$256$131$65$4
50 years$841$462$241$121$59$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $861,000, adding $5,802 every year, while hoping to spend $39,104 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: 74/18/8 Blend
39$861,000$861,000$861,000$861,000
40$954,807$909,174$895,828$1,023,843
41$1,010,591$912,117$884,232$1,073,070
42$1,070,754$913,894$870,937$1,121,482
43$1,135,702$914,406$855,845$1,173,412
44$1,205,880$913,548$838,852$1,229,196
45$1,281,778$911,210$819,852$1,289,202
46$1,363,934$907,274$798,731$1,353,838
47$1,452,940$901,615$775,373$1,423,553
48$1,549,445$894,100$749,654$1,498,843
49$1,654,166$884,588$721,444$1,580,254
50$1,767,888$872,930$690,610$1,668,388
51$1,891,478$858,968$657,010$1,763,909
52$2,025,886$842,535$620,498$1,867,550
53$2,172,161$823,454$580,919$1,980,119
54$2,331,454$801,536$538,112$2,102,507
55$2,505,034$776,582$491,911$2,235,697
56$2,694,295$748,383$442,138$2,380,772
57$2,900,775$716,715$388,610$2,538,928
58$3,126,162$681,343$331,137$2,711,484
59$3,372,319$642,017$269,519$2,899,892
60$3,641,293$598,473$203,545$3,105,758
61$3,935,340$550,433$132,999$3,330,849
62$4,256,942$497,602$57,652$3,577,117
63$4,608,835$439,669$0$3,846,711
64$4,994,027$376,304$0$4,143,948
65$5,415,835$307,160$0$4,474,880
66$5,877,908$231,869$0$4,837,486
67$6,384,266$150,042$0$5,234,973
68$6,939,338$61,271$0$5,670,874
69$7,547,999$0$0$6,149,083
70$8,215,621$0$0$6,680,803
71$8,948,118$0$0$7,277,545
72$9,752,007$0$0$7,932,487
73$10,634,465$0$0$8,651,481
74$11,603,397$0$0$9,440,974
75$12,667,513$0$0$10,308,067
76$13,836,408$0$0$11,260,582
77$15,120,649$0$0$12,307,139
78$16,531,879$0$0$13,457,231
79$18,082,927$0$0$14,721,317
80$19,787,922$0$0$16,110,921
81$21,662,434$0$0$17,638,737
82$23,723,614$0$0$19,318,753
83$25,990,361$0$0$21,166,377
84$28,483,494$0$0$23,198,587
85$31,225,954$0$0$25,434,091
86$34,243,015$0$0$27,893,497
87$37,562,524$0$0$30,599,514
88$41,215,165$0$0$33,577,162
89$45,234,745$0$0$36,854,010
90$49,658,514$0$0$40,460,434
91$54,527,518$0$0$44,429,904
92$59,886,980$0$0$48,799,298
93$65,786,735$0$0$53,609,254
94$72,281,689$0$0$58,904,546
95$79,432,347$0$0$64,734,513
96$87,305,377$0$0$71,153,521
97$95,974,240$0$0$78,221,474
98$105,519,884$0$0$86,004,382
99$116,031,507$0$0$94,574,984
100$127,607,395$0$0$104,013,428