Can I retire at age 40 with 874,000?

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 $874,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.1%
1 years$72,174$71,531$70,904$70,292$69,694$68,511
2 years$35,730$35,064$34,419$33,794$33,188$32,000
3 years$23,583$22,915$22,272$21,652$21,056$19,899
4 years$17,511$16,845$16,208$15,599$15,017$13,902
5 years$13,869$13,207$12,578$11,982$11,416$10,344
6 years$11,441$10,784$10,165$9,582$9,033$8,006
7 years$9,708$9,057$8,447$7,878$7,346$6,365
8 years$8,409$7,763$7,164$6,608$6,094$5,158
9 years$7,399$6,759$6,170$5,629$5,132$4,241
10 years$6,591$5,958$5,379$4,852$4,373$3,526
11 years$5,931$5,304$4,736$4,223$3,761$2,957
12 years$5,381$4,761$4,203$3,704$3,259$2,497
13 years$4,916$4,302$3,755$3,270$2,842$2,121
14 years$4,518$3,911$3,374$2,903$2,491$1,809
15 years$4,174$3,572$3,046$2,589$2,194$1,550
16 years$3,872$3,278$2,762$2,318$1,939$1,332
17 years$3,607$3,019$2,513$2,083$1,719$1,148
18 years$3,371$2,789$2,294$1,877$1,528$991
19 years$3,160$2,585$2,100$1,696$1,362$858
20 years$2,970$2,402$1,927$1,536$1,217$744
21 years$2,799$2,238$1,773$1,394$1,089$646
22 years$2,644$2,089$1,634$1,268$976$561
23 years$2,502$1,953$1,509$1,154$876$488
24 years$2,372$1,830$1,395$1,053$788$425
25 years$2,253$1,718$1,292$962$709$371
26 years$2,144$1,614$1,199$879$638$323
27 years$2,042$1,519$1,113$805$576$282
28 years$1,948$1,432$1,035$737$519$247
29 years$1,861$1,351$963$676$469$215
30 years$1,779$1,275$897$620$424$188
31 years$1,703$1,206$836$570$383$165
32 years$1,632$1,141$780$524$346$144
33 years$1,565$1,080$728$482$314$126
34 years$1,503$1,024$681$443$284$110
35 years$1,444$971$636$408$257$96
36 years$1,388$922$595$376$233$84
37 years$1,336$876$557$346$211$74
38 years$1,286$832$522$319$191$65
39 years$1,239$791$489$294$174$57
40 years$1,195$753$458$271$157$50
41 years$1,153$717$430$250$143$43
42 years$1,113$682$403$231$130$38
43 years$1,075$650$378$213$118$33
44 years$1,038$620$355$197$107$29
45 years$1,004$591$333$182$97$26
46 years$971$564$313$168$88$22
47 years$940$538$294$155$80$20
48 years$910$514$276$143$73$17
49 years$881$490$260$133$66$15
50 years$853$469$244$123$60$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $874,000, adding $2,637 every year, while hoping to spend $48,115 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: 68/13/19 Blend
39$874,000$874,000$874,000$874,000
40$965,868$919,546$905,999$1,026,865
41$1,013,193$913,410$885,156$1,061,824
42$1,063,732$905,360$862,002$1,094,184
43$1,117,762$895,253$836,409$1,128,405
44$1,175,588$882,935$808,243$1,164,668
45$1,237,543$868,243$777,364$1,203,172
46$1,303,991$851,005$743,624$1,244,140
47$1,375,333$831,040$706,871$1,287,816
48$1,452,011$808,154$666,944$1,334,473
49$1,534,505$782,144$623,677$1,384,412
50$1,623,348$752,791$576,893$1,437,967
51$1,719,120$719,869$526,410$1,495,508
52$1,822,462$683,135$472,036$1,557,442
53$1,934,077$642,332$413,573$1,624,224
54$2,054,737$597,191$350,812$1,696,354
55$2,185,291$547,424$283,535$1,774,386
56$2,326,672$492,729$211,515$1,858,935
57$2,479,906$432,786$134,514$1,950,678
58$2,646,121$367,257$52,285$2,050,368
59$2,826,558$295,785$0$2,158,833
60$3,022,581$217,993$0$2,284,184
61$3,235,692$133,482$0$2,432,023
62$3,467,541$41,831$0$2,592,921
63$3,719,946$0$0$2,768,177
64$3,994,906$0$0$2,967,437
65$4,294,621$0$0$3,191,206
66$4,621,512$0$0$3,435,315
67$4,978,244$0$0$3,701,758
68$5,367,751$0$0$3,992,734
69$5,793,262$0$0$4,310,661
70$6,258,333$0$0$4,658,203
71$6,766,876$0$0$5,038,292
72$7,323,202$0$0$5,454,155
73$7,932,056$0$0$5,909,349
74$8,598,662$0$0$6,407,787
75$9,328,775$0$0$6,953,779
76$10,128,730$0$0$7,552,073
77$11,005,505$0$0$8,207,897
78$11,966,787$0$0$8,927,008
79$13,021,039$0$0$9,715,749
80$14,177,584$0$0$10,581,104
81$15,446,692$0$0$11,530,768
82$16,839,672$0$0$12,573,214
83$18,368,986$0$0$13,717,779
84$20,048,357$0$0$14,974,746
85$21,892,904$0$0$16,355,442
86$23,919,283$0$0$17,872,347
87$26,145,842$0$0$19,539,210
88$28,592,794$0$0$21,371,174
89$31,282,407$0$0$23,384,926
90$34,239,215$0$0$25,598,849
91$37,490,246$0$0$28,033,194
92$41,065,280$0$0$30,710,276
93$44,997,124$0$0$33,654,677
94$49,321,927$0$0$36,893,484
95$54,079,515$0$0$40,456,538
96$59,313,770$0$0$44,376,722
97$65,073,040$0$0$48,690,264
98$71,410,598$0$0$53,437,081
99$78,385,141$0$0$58,661,156
100$86,061,342$0$0$64,410,952