Can I retire at age 40 with 867,000?

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 $867,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.7%
1 years$71,596$70,958$70,336$69,729$69,136$66,445
2 years$35,444$34,783$34,144$33,523$32,922$30,244
3 years$23,394$22,731$22,093$21,479$20,887$18,305
4 years$17,371$16,710$16,078$15,474$14,897$12,432
5 years$13,758$13,101$12,477$11,886$11,324$8,982
6 years$11,350$10,698$10,084$9,505$8,961$6,742
7 years$9,631$8,984$8,379$7,815$7,287$5,192
8 years$8,342$7,701$7,106$6,556$6,046$4,072
9 years$7,340$6,705$6,121$5,584$5,091$3,236
10 years$6,539$5,910$5,336$4,813$4,338$2,598
11 years$5,884$5,261$4,698$4,189$3,731$2,102
12 years$5,338$4,722$4,169$3,674$3,233$1,711
13 years$4,877$4,268$3,725$3,244$2,819$1,399
14 years$4,482$3,879$3,347$2,880$2,471$1,149
15 years$4,140$3,544$3,022$2,568$2,176$946
16 years$3,841$3,251$2,740$2,299$1,923$781
17 years$3,578$2,994$2,493$2,066$1,705$646
18 years$3,344$2,767$2,276$1,862$1,516$535
19 years$3,135$2,564$2,083$1,682$1,351$444
20 years$2,947$2,383$1,912$1,524$1,207$369
21 years$2,777$2,220$1,759$1,383$1,080$307
22 years$2,623$2,072$1,621$1,257$968$255
23 years$2,482$1,938$1,497$1,145$869$213
24 years$2,353$1,816$1,384$1,044$781$177
25 years$2,235$1,704$1,282$954$703$148
26 years$2,126$1,601$1,189$872$633$123
27 years$2,026$1,507$1,104$798$571$103
28 years$1,932$1,420$1,026$731$515$86
29 years$1,846$1,340$955$671$465$72
30 years$1,765$1,265$890$616$420$60
31 years$1,689$1,196$829$565$380$50
32 years$1,619$1,132$774$520$344$42
33 years$1,553$1,072$723$478$311$35
34 years$1,491$1,016$675$440$282$29
35 years$1,432$963$631$405$255$24
36 years$1,377$914$590$373$231$20
37 years$1,325$868$553$343$209$17
38 years$1,276$825$518$316$190$14
39 years$1,229$785$485$292$172$12
40 years$1,185$747$454$269$156$10
41 years$1,144$711$426$248$142$8
42 years$1,104$677$400$229$129$7
43 years$1,066$645$375$212$117$6
44 years$1,030$615$352$195$106$5
45 years$996$586$331$180$96$4
46 years$963$559$311$167$87$3
47 years$932$534$292$154$79$3
48 years$902$510$274$142$72$2
49 years$874$487$258$131$65$2
50 years$846$465$242$122$59$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $867,000, adding $4,681 every year, while hoping to spend $40,885 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: 45/30/25 Blend
39$867,000$867,000$867,000$867,000
40$960,262$914,311$900,873$996,358
41$1,014,708$915,611$887,551$1,023,658
42$1,073,336$915,605$872,412$1,048,913
43$1,136,532$914,184$855,353$1,075,494
44$1,204,715$911,236$836,264$1,103,547
45$1,278,349$906,640$815,032$1,133,234
46$1,357,942$900,267$791,537$1,164,735
47$1,444,054$891,982$765,656$1,198,253
48$1,537,299$881,640$737,256$1,234,015
49$1,638,352$869,089$706,203$1,272,271
50$1,747,956$854,166$672,353$1,313,303
51$1,866,928$836,702$635,558$1,357,423
52$1,996,167$816,512$595,661$1,404,980
53$2,136,661$793,406$552,501$1,456,361
54$2,289,497$767,180$505,906$1,511,997
55$2,455,872$737,618$455,700$1,572,369
56$2,637,102$704,492$401,697$1,638,008
57$2,834,635$667,560$343,702$1,709,509
58$3,050,065$626,569$281,514$1,787,528
59$3,285,148$581,247$214,921$1,872,798
60$3,541,815$531,310$143,703$1,966,127
61$3,822,192$476,455$67,628$2,068,418
62$4,128,619$416,365$0$2,180,668
63$4,463,673$350,702$0$2,307,601
64$4,830,192$279,111$0$2,466,314
65$5,231,299$201,215$0$2,640,180
66$5,670,435$116,618$0$2,830,778
67$6,151,387$24,900$0$3,039,855
68$6,678,327$0$0$3,269,340
69$7,255,849$0$0$3,545,917
70$7,889,013$0$0$3,858,257
71$8,583,392$0$0$4,200,901
72$9,345,122$0$0$4,576,892
73$10,180,965$0$0$4,989,580
74$11,098,368$0$0$5,442,656
75$12,105,532$0$0$5,940,186
76$13,211,493$0$0$6,486,650
77$14,426,205$0$0$7,086,980
78$15,760,633$0$0$7,746,613
79$17,226,855$0$0$8,471,537
80$18,838,179$0$0$9,268,348
81$20,609,265$0$0$10,144,314
82$22,556,264$0$0$11,107,442
83$24,696,970$0$0$12,166,554
84$27,050,986$0$0$13,331,370
85$29,639,913$0$0$14,612,597
86$32,487,546$0$0$16,022,035
87$35,620,105$0$0$17,572,682
88$39,066,479$0$0$19,278,862
89$42,858,496$0$0$21,156,356
90$47,031,226$0$0$23,222,552
91$51,623,312$0$0$25,496,610
92$56,677,330$0$0$27,999,641
93$62,240,194$0$0$30,754,905
94$68,363,596$0$0$33,788,035
95$75,104,494$0$0$37,127,272
96$82,525,649$0$0$40,803,736
97$90,696,219$0$0$44,851,718
98$99,692,404$0$0$49,309,004
99$109,598,173$0$0$54,217,228
100$120,506,051$0$0$59,622,271