Can I retire at age 40 with 862,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $862,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$71,183$70,549$69,930$69,327$68,737$66,886
2 years$35,239$34,583$33,947$33,330$32,732$30,880
3 years$23,259$22,600$21,966$21,355$20,766$18,972
4 years$17,271$16,614$15,986$15,385$14,811$13,087
5 years$13,678$13,025$12,405$11,817$11,259$9,611
6 years$11,284$10,636$10,025$9,450$8,909$7,338
7 years$9,575$8,932$8,331$7,770$7,245$5,752
8 years$8,294$7,657$7,065$6,518$6,011$4,595
9 years$7,297$6,666$6,086$5,552$5,062$3,721
10 years$6,501$5,876$5,305$4,786$4,313$3,046
11 years$5,850$5,231$4,671$4,165$3,709$2,514
12 years$5,307$4,695$4,145$3,653$3,214$2,089
13 years$4,849$4,243$3,704$3,225$2,803$1,745
14 years$4,456$3,857$3,328$2,863$2,457$1,464
15 years$4,116$3,523$3,004$2,553$2,163$1,232
16 years$3,819$3,233$2,724$2,286$1,912$1,040
17 years$3,557$2,977$2,479$2,054$1,695$880
18 years$3,324$2,751$2,263$1,851$1,507$747
19 years$3,117$2,550$2,071$1,673$1,344$634
20 years$2,930$2,369$1,901$1,515$1,200$540
21 years$2,761$2,207$1,749$1,375$1,074$460
22 years$2,608$2,060$1,612$1,250$963$392
23 years$2,468$1,927$1,488$1,138$864$334
24 years$2,340$1,805$1,376$1,038$777$286
25 years$2,222$1,694$1,275$948$699$244
26 years$2,114$1,592$1,182$867$630$209
27 years$2,014$1,498$1,098$794$568$178
28 years$1,921$1,412$1,020$727$512$153
29 years$1,835$1,332$950$667$462$131
30 years$1,755$1,258$885$612$418$112
31 years$1,680$1,189$825$562$378$96
32 years$1,609$1,125$769$517$342$82
33 years$1,544$1,066$718$475$309$70
34 years$1,482$1,010$671$437$280$60
35 years$1,424$958$628$402$254$52
36 years$1,369$909$587$371$230$44
37 years$1,317$863$549$341$208$38
38 years$1,269$821$515$315$189$33
39 years$1,222$780$482$290$171$28
40 years$1,178$742$452$268$155$24
41 years$1,137$707$424$247$141$20
42 years$1,097$673$397$228$128$18
43 years$1,060$641$373$210$116$15
44 years$1,024$611$350$194$105$13
45 years$990$583$329$179$96$11
46 years$958$556$309$166$87$9
47 years$927$531$290$153$79$8
48 years$897$507$273$141$72$7
49 years$869$484$256$131$65$6
50 years$842$462$241$121$59$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $862,000, adding $4,710 every year, while hoping to spend $42,046 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: 74/9/17 Blend
39$862,000$862,000$862,000$862,000
40$954,782$909,096$895,735$1,021,394
41$1,007,434$908,905$881,006$1,065,969
42$1,064,046$907,296$864,374$1,109,182
43$1,124,979$904,154$845,731$1,155,424
44$1,190,628$899,359$824,964$1,204,986
45$1,261,427$892,782$801,955$1,258,190
46$1,337,852$884,288$776,580$1,315,389
47$1,420,426$873,731$748,709$1,376,975
48$1,509,726$860,960$718,207$1,443,377
49$1,606,384$845,813$684,932$1,515,073
50$1,711,094$828,117$648,737$1,592,587
51$1,824,622$807,691$609,466$1,676,498
52$1,947,808$784,343$566,958$1,767,446
53$2,081,577$757,868$521,043$1,866,135
54$2,226,946$728,052$471,546$1,973,344
55$2,385,034$694,666$418,282$2,089,931
56$2,557,071$657,468$361,058$2,216,845
57$2,744,412$616,203$299,673$2,355,129
58$2,948,547$570,602$233,918$2,505,937
59$3,171,116$520,380$163,571$2,670,541
60$3,413,925$465,233$88,406$2,850,345
61$3,678,960$404,844$8,182$3,046,896
62$3,968,408$338,875$0$3,261,904
63$4,284,677$266,971$0$3,511,297
64$4,630,417$188,756$0$3,785,606
65$5,008,547$103,833$0$4,085,687
66$5,422,279$11,781$0$4,414,119
67$5,875,153$0$0$4,773,748
68$6,371,063$0$0$5,176,404
69$6,914,301$0$0$5,618,802
70$7,509,590$0$0$6,103,629
71$8,162,135$0$0$6,635,127
72$8,877,667$0$0$7,217,970
73$9,662,497$0$0$7,857,303
74$10,523,578$0$0$8,558,796
75$11,468,567$0$0$9,328,692
76$12,505,901$0$0$10,173,870
77$13,644,870$0$0$11,101,907
78$14,895,709$0$0$12,121,147
79$16,269,695$0$0$13,240,786
80$17,779,248$0$0$14,470,952
81$19,438,052$0$0$15,822,801
82$21,261,182$0$0$17,308,628
83$23,265,245$0$0$18,941,974
84$25,468,538$0$0$20,737,759
85$27,891,219$0$0$22,712,420
86$30,555,498$0$0$24,884,069
87$33,485,844$0$0$27,272,657
88$36,709,216$0$0$29,900,170
89$40,255,319$0$0$32,790,829
90$44,156,879$0$0$35,971,321
91$48,449,957$0$0$39,471,052
92$53,174,285$0$0$43,322,421
93$58,373,642$0$0$47,561,127
94$64,096,263$0$0$52,226,506
95$70,395,300$0$0$57,361,899
96$77,329,317$0$0$63,015,063
97$84,962,845$0$0$69,238,621
98$93,366,990$0$0$76,090,556
99$102,620,102$0$0$83,634,762
100$112,808,517$0$0$91,941,639