Can I retire at age 40 with 869,000?

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 $869,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$71,761$71,122$70,498$69,890$69,295$67,620
2 years$35,525$34,864$34,223$33,601$32,998$31,320
3 years$23,448$22,784$22,144$21,528$20,935$19,307
4 years$17,411$16,749$16,115$15,510$14,931$13,366
5 years$13,790$13,131$12,506$11,913$11,350$9,852
6 years$11,376$10,722$10,107$9,527$8,981$7,551
7 years$9,653$9,005$8,399$7,833$7,304$5,943
8 years$8,361$7,719$7,123$6,571$6,059$4,766
9 years$7,357$6,721$6,135$5,597$5,103$3,876
10 years$6,554$5,924$5,349$4,824$4,348$3,187
11 years$5,897$5,274$4,709$4,199$3,739$2,642
12 years$5,350$4,733$4,179$3,683$3,240$2,205
13 years$4,888$4,278$3,734$3,251$2,826$1,851
14 years$4,492$3,888$3,355$2,886$2,477$1,560
15 years$4,150$3,552$3,029$2,574$2,181$1,320
16 years$3,850$3,259$2,746$2,305$1,928$1,120
17 years$3,586$3,001$2,499$2,071$1,709$953
18 years$3,351$2,773$2,281$1,866$1,520$812
19 years$3,142$2,570$2,088$1,686$1,355$693
20 years$2,953$2,388$1,916$1,527$1,210$593
21 years$2,783$2,225$1,763$1,386$1,083$508
22 years$2,629$2,077$1,625$1,260$970$435
23 years$2,488$1,942$1,500$1,148$871$374
24 years$2,359$1,820$1,387$1,047$783$321
25 years$2,240$1,708$1,285$956$705$276
26 years$2,131$1,605$1,192$874$635$237
27 years$2,030$1,511$1,107$800$572$204
28 years$1,937$1,423$1,029$733$516$175
29 years$1,850$1,343$957$672$466$151
30 years$1,769$1,268$892$617$421$130
31 years$1,693$1,199$831$567$381$112
32 years$1,623$1,134$776$521$345$97
33 years$1,556$1,074$724$479$312$83
34 years$1,494$1,018$677$441$282$72
35 years$1,435$966$633$406$256$62
36 years$1,380$917$592$374$232$53
37 years$1,328$871$554$344$210$46
38 years$1,279$827$519$317$190$40
39 years$1,232$787$486$292$173$34
40 years$1,188$748$456$270$157$29
41 years$1,146$712$427$249$142$25
42 years$1,106$679$401$230$129$22
43 years$1,069$646$376$212$117$19
44 years$1,032$616$353$196$106$16
45 years$998$588$331$181$96$14
46 years$965$561$311$167$88$12
47 years$934$535$292$154$79$10
48 years$904$511$275$143$72$9
49 years$876$488$258$132$66$8
50 years$848$466$243$122$60$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $869,000, adding $4,586 every year, while hoping to spend $50,102 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: 37/45/18 Blend
39$869,000$869,000$869,000$869,000
40$962,368$916,311$902,842$992,585
41$1,007,222$907,903$879,779$1,006,434
42$1,054,971$897,402$854,264$1,016,311
43$1,105,859$884,656$826,163$1,025,929
44$1,160,150$869,498$795,333$1,035,293
45$1,218,137$851,754$761,628$1,044,411
46$1,280,136$831,240$724,892$1,053,299
47$1,346,499$807,760$684,965$1,061,975
48$1,417,609$781,106$641,678$1,070,468
49$1,493,885$751,061$594,854$1,078,812
50$1,575,789$717,391$544,310$1,087,053
51$1,663,828$679,851$489,852$1,095,245
52$1,758,557$638,182$431,281$1,103,454
53$1,860,586$592,109$368,385$1,111,762
54$1,970,586$541,343$300,946$1,120,264
55$2,089,292$485,576$228,735$1,129,072
56$2,217,515$424,484$151,512$1,138,320
57$2,356,143$357,724$69,029$1,148,162
58$2,506,152$284,936$0$1,158,777
59$2,668,617$205,735$0$1,174,020
60$2,844,719$119,719$0$1,204,868
61$3,035,757$26,462$0$1,238,375
62$3,243,158$0$0$1,274,912
63$3,468,493$0$0$1,351,779
64$3,713,490$0$0$1,449,707
65$3,980,050$0$0$1,556,364
66$4,270,264$0$0$1,672,603
67$4,586,434$0$0$1,799,358
68$4,931,092$0$0$1,937,662
69$5,307,026$0$0$2,088,648
70$5,717,303$0$0$2,253,564
71$6,165,301$0$0$2,433,786
72$6,654,737$0$0$2,630,827
73$7,189,704$0$0$2,846,353
74$7,774,707$0$0$3,082,199
75$8,414,708$0$0$3,340,385
76$9,115,168$0$0$3,623,136
77$9,882,103$0$0$3,932,902
78$10,722,137$0$0$4,272,380
79$11,642,565$0$0$4,644,542
80$12,651,419$0$0$5,052,660
81$13,757,548$0$0$5,500,340
82$14,970,696$0$0$5,991,550
83$16,301,596$0$0$6,530,664
84$17,762,071$0$0$7,122,500
85$19,365,142$0$0$7,772,362
86$21,125,153$0$0$8,486,096
87$23,057,906$0$0$9,270,141
88$25,180,806$0$0$10,131,591
89$27,513,029$0$0$11,078,259
90$30,075,697$0$0$12,118,754
91$32,892,081$0$0$13,262,561
92$35,987,820$0$0$14,520,128
93$39,391,158$0$0$15,902,969
94$43,133,213$0$0$17,423,765
95$47,248,268$0$0$19,096,491
96$51,774,096$0$0$20,936,544
97$56,752,313$0$0$22,960,887
98$62,228,772$0$0$25,188,210
99$68,253,993$0$0$27,639,108
100$74,883,640$0$0$30,336,271