Can I retire at age 40 with 884,000?

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 $884,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.5%
1 years$73,000$72,350$71,715$71,096$70,491$69,467
2 years$36,139$35,466$34,813$34,181$33,567$32,537
3 years$23,853$23,177$22,526$21,900$21,296$20,293
4 years$17,712$17,038$16,393$15,778$15,189$14,219
5 years$14,028$13,358$12,722$12,119$11,546$10,614
6 years$11,572$10,908$10,281$9,691$9,136$8,242
7 years$9,819$9,160$8,544$7,968$7,430$6,574
8 years$8,505$7,852$7,246$6,684$6,164$5,347
9 years$7,484$6,837$6,241$5,693$5,191$4,411
10 years$6,667$6,026$5,441$4,908$4,423$3,681
11 years$5,999$5,365$4,790$4,271$3,804$3,098
12 years$5,443$4,815$4,251$3,746$3,296$2,627
13 years$4,973$4,351$3,798$3,308$2,875$2,240
14 years$4,570$3,955$3,413$2,936$2,520$1,919
15 years$4,221$3,613$3,081$2,618$2,219$1,650
16 years$3,916$3,315$2,793$2,345$1,961$1,424
17 years$3,648$3,053$2,542$2,107$1,739$1,233
18 years$3,409$2,821$2,320$1,898$1,546$1,069
19 years$3,196$2,615$2,124$1,715$1,378$929
20 years$3,004$2,430$1,950$1,554$1,231$809
21 years$2,831$2,263$1,793$1,410$1,101$706
22 years$2,674$2,113$1,653$1,282$987$616
23 years$2,531$1,976$1,526$1,168$886$539
24 years$2,400$1,851$1,411$1,065$797$472
25 years$2,279$1,737$1,307$973$717$413
26 years$2,168$1,633$1,212$889$646$362
27 years$2,065$1,537$1,126$814$582$317
28 years$1,970$1,448$1,047$746$525$279
29 years$1,882$1,366$974$684$474$245
30 years$1,799$1,290$907$628$429$215
31 years$1,723$1,219$846$576$387$189
32 years$1,651$1,154$789$530$350$166
33 years$1,583$1,093$737$487$317$146
34 years$1,520$1,036$688$448$287$128
35 years$1,460$982$644$413$260$113
36 years$1,404$932$602$380$236$99
37 years$1,351$886$563$350$214$87
38 years$1,301$842$528$323$194$77
39 years$1,253$800$494$298$176$68
40 years$1,209$761$463$274$159$60
41 years$1,166$725$435$253$144$52
42 years$1,125$690$408$234$131$46
43 years$1,087$658$382$216$119$41
44 years$1,050$627$359$199$108$36
45 years$1,015$598$337$184$98$32
46 years$982$570$317$170$89$28
47 years$950$544$297$157$81$24
48 years$920$520$280$145$73$22
49 years$891$496$263$134$67$19
50 years$863$474$247$124$61$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $884,000, adding $3,973 every year, while hoping to spend $36,764 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: 87/6/7 Blend
39$884,000$884,000$884,000$884,000
40$978,266$931,414$917,712$1,062,533
41$1,038,933$937,937$909,339$1,124,564
42$1,104,555$943,547$899,453$1,187,233
43$1,175,600$948,161$887,965$1,254,925
44$1,252,580$951,690$874,781$1,328,121
45$1,336,060$954,040$859,803$1,407,348
46$1,426,660$955,110$842,928$1,493,188
47$1,525,063$954,793$824,050$1,586,280
48$1,632,018$952,977$803,054$1,687,328
49$1,748,352$949,541$779,824$1,797,109
50$1,874,973$944,357$754,237$1,916,477
51$2,012,880$937,291$726,164$2,046,371
52$2,163,174$928,198$695,470$2,187,829
53$2,327,064$916,926$662,015$2,341,990
54$2,505,883$903,314$625,652$2,510,112
55$2,701,098$887,191$586,226$2,693,579
56$2,914,323$868,376$543,577$2,893,915
57$3,147,334$846,677$497,538$3,112,801
58$3,402,089$821,891$447,932$3,352,086
59$3,680,741$793,803$394,577$3,613,809
60$3,985,663$762,185$337,281$3,900,217
61$4,319,465$726,797$275,844$4,213,783
62$4,685,024$687,383$210,058$4,557,235
63$5,085,507$643,675$139,706$4,933,575
64$5,524,400$595,388$64,558$5,346,114
65$6,005,547$542,219$0$5,798,498
66$6,533,177$483,852$0$6,295,913
67$7,111,949$419,949$0$6,846,841
68$7,746,997$350,156$0$7,451,354
69$8,443,973$274,095$0$8,114,847
70$9,209,103$191,372$0$8,843,265
71$10,049,249$101,566$0$9,643,160
72$10,971,965$4,235$0$10,521,746
73$11,985,575$0$0$11,486,975
74$13,099,249$0$0$12,554,283
75$14,323,089$0$0$13,727,486
76$15,668,224$0$0$15,016,974
77$17,146,914$0$0$16,434,503
78$18,772,668$0$0$17,993,023
79$20,560,366$0$0$19,706,801
80$22,526,406$0$0$21,591,557
81$24,688,852$0$0$23,664,609
82$27,067,606$0$0$25,945,041
83$29,684,599$0$0$28,453,875
84$32,563,993$0$0$31,214,278
85$35,732,409$0$0$34,251,772
86$39,219,180$0$0$37,594,480
87$43,056,627$0$0$41,273,389
88$47,280,362$0$0$45,322,641
89$51,929,625$0$0$49,779,857
90$57,047,652$0$0$54,686,489
91$62,682,087$0$0$60,088,214
92$68,885,424$0$0$66,035,362
93$75,715,509$0$0$72,583,391
94$83,236,081$0$0$79,793,409
95$91,517,376$0$0$87,732,755
96$100,636,787$0$0$96,475,627
97$110,679,593$0$0$106,103,787
98$121,739,768$0$0$116,707,331
99$133,920,863$0$0$128,385,536
100$147,336,984$0$0$141,247,801