Can I retire at age 40 with 863,000?

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 $863,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$71,266$70,631$70,012$69,407$68,817$67,844
2 years$35,280$34,623$33,986$33,369$32,770$31,792
3 years$23,286$22,627$21,991$21,380$20,791$19,838
4 years$17,291$16,633$16,004$15,403$14,828$13,908
5 years$13,694$13,040$12,420$11,831$11,272$10,387
6 years$11,297$10,648$10,037$9,461$8,919$8,070
7 years$9,586$8,943$8,341$7,779$7,254$6,441
8 years$8,303$7,665$7,074$6,525$6,018$5,241
9 years$7,306$6,674$6,093$5,558$5,068$4,327
10 years$6,508$5,883$5,312$4,791$4,318$3,612
11 years$5,856$5,237$4,676$4,170$3,714$3,043
12 years$5,314$4,701$4,150$3,657$3,218$2,581
13 years$4,855$4,248$3,708$3,229$2,806$2,202
14 years$4,461$3,861$3,331$2,866$2,460$1,888
15 years$4,121$3,527$3,008$2,556$2,166$1,625
16 years$3,823$3,236$2,727$2,289$1,914$1,403
17 years$3,561$2,981$2,482$2,056$1,697$1,215
18 years$3,328$2,754$2,265$1,853$1,509$1,055
19 years$3,120$2,553$2,074$1,675$1,345$918
20 years$2,933$2,372$1,903$1,517$1,202$800
21 years$2,764$2,209$1,751$1,376$1,075$698
22 years$2,611$2,062$1,613$1,252$964$610
23 years$2,471$1,929$1,490$1,140$865$534
24 years$2,343$1,807$1,378$1,040$778$467
25 years$2,225$1,696$1,276$949$700$410
26 years$2,117$1,594$1,184$868$630$359
27 years$2,016$1,500$1,099$795$568$315
28 years$1,923$1,414$1,022$728$513$277
29 years$1,837$1,334$951$668$463$243
30 years$1,757$1,259$886$613$418$214
31 years$1,682$1,191$826$563$378$188
32 years$1,611$1,126$770$517$342$166
33 years$1,546$1,067$719$476$310$146
34 years$1,484$1,011$672$438$280$128
35 years$1,425$959$628$403$254$113
36 years$1,371$910$588$371$230$99
37 years$1,319$864$550$342$209$88
38 years$1,270$822$515$315$189$77
39 years$1,224$781$483$290$171$68
40 years$1,180$743$452$268$155$60
41 years$1,138$708$424$247$141$53
42 years$1,099$674$398$228$128$46
43 years$1,061$642$373$211$116$41
44 years$1,025$612$350$194$105$36
45 years$991$584$329$180$96$32
46 years$959$557$309$166$87$28
47 years$928$531$290$153$79$25
48 years$898$507$273$142$72$22
49 years$870$484$256$131$65$19
50 years$843$463$241$121$59$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $863,000, adding $3,100 every year, while hoping to spend $32,330 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: 74/11/15 Blend
39$863,000$863,000$863,000$863,000
40$954,224$908,485$895,108$1,021,470
41$1,017,156$918,602$890,695$1,076,502
42$1,085,423$928,131$885,051$1,132,491
43$1,159,536$937,009$878,100$1,192,971
44$1,240,056$945,169$869,764$1,258,382
45$1,327,599$952,540$859,959$1,329,204
46$1,422,845$959,046$848,598$1,405,970
47$1,526,541$964,605$835,592$1,489,266
48$1,639,509$969,131$820,845$1,579,737
49$1,762,653$972,533$804,257$1,678,096
50$1,896,969$974,712$785,726$1,785,126
51$2,043,553$975,566$765,141$1,901,693
52$2,203,611$974,985$742,388$2,028,749
53$2,378,471$972,850$717,350$2,167,347
54$2,569,595$969,039$689,900$2,318,644
55$2,778,591$963,420$659,910$2,483,918
56$3,007,232$955,853$627,242$2,664,577
57$3,257,469$946,189$591,754$2,862,172
58$3,531,451$934,272$553,297$3,078,414
59$3,831,543$919,935$511,717$3,315,191
60$4,160,351$903,002$466,850$3,574,580
61$4,520,744$883,286$418,526$3,858,875
62$4,915,882$860,590$366,569$4,170,601
63$5,349,245$834,702$310,793$4,512,545
64$5,824,669$805,403$251,004$4,887,778
65$6,346,374$772,457$187,002$5,299,684
66$6,919,011$735,615$118,574$5,751,996
67$7,547,706$694,615$45,502$6,248,826
68$8,238,100$649,179$0$6,794,711
69$8,996,411$599,014$0$7,399,846
70$9,829,487$543,808$0$8,072,655
71$10,744,874$483,233$0$8,811,960
72$11,750,883$416,943$0$9,624,501
73$12,856,670$344,571$0$10,517,702
74$14,072,325$265,729$0$11,499,744
75$15,408,961$180,009$0$12,579,644
76$16,878,823$86,978$0$13,767,338
77$18,495,403$0$0$15,073,774
78$20,273,565$0$0$16,512,691
79$22,229,686$0$0$18,107,238
80$24,381,810$0$0$19,861,603
81$26,749,819$0$0$21,791,996
82$29,355,618$0$0$23,916,282
83$32,223,344$0$0$26,254,142
84$35,379,592$0$0$28,827,263
85$38,853,665$0$0$31,659,542
86$42,677,852$0$0$34,777,308
87$46,887,732$0$0$38,209,573
88$51,522,507$0$0$41,988,306
89$56,625,373$0$0$46,148,733
90$62,243,931$0$0$50,729,669
91$68,430,629$0$0$55,773,883
92$75,243,261$0$0$61,328,506
93$82,745,512$0$0$67,445,469
94$91,007,557$0$0$74,181,998
95$100,106,723$0$0$81,601,152
96$110,128,221$0$0$89,772,416
97$121,165,946$0$0$98,772,359
98$133,323,366$0$0$108,685,356
99$146,714,495$0$0$119,604,383
100$161,464,971$0$0$131,631,893