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%12.5%
1 years$73,000$72,350$71,715$71,096$70,491$69,755
2 years$36,139$35,466$34,813$34,181$33,567$32,826
3 years$23,853$23,177$22,526$21,900$21,296$20,573
4 years$17,712$17,038$16,393$15,778$15,189$14,489
5 years$14,028$13,358$12,722$12,119$11,546$10,872
6 years$11,572$10,908$10,281$9,691$9,136$8,488
7 years$9,819$9,160$8,544$7,968$7,430$6,808
8 years$8,505$7,852$7,246$6,684$6,164$5,569
9 years$7,484$6,837$6,241$5,693$5,191$4,622
10 years$6,667$6,026$5,441$4,908$4,423$3,880
11 years$5,999$5,365$4,790$4,271$3,804$3,286
12 years$5,443$4,815$4,251$3,746$3,296$2,804
13 years$4,973$4,351$3,798$3,308$2,875$2,406
14 years$4,570$3,955$3,413$2,936$2,520$2,075
15 years$4,221$3,613$3,081$2,618$2,219$1,797
16 years$3,916$3,315$2,793$2,345$1,961$1,562
17 years$3,648$3,053$2,542$2,107$1,739$1,361
18 years$3,409$2,821$2,320$1,898$1,546$1,189
19 years$3,196$2,615$2,124$1,715$1,378$1,041
20 years$3,004$2,430$1,950$1,554$1,231$913
21 years$2,831$2,263$1,793$1,410$1,101$803
22 years$2,674$2,113$1,653$1,282$987$706
23 years$2,531$1,976$1,526$1,168$886$622
24 years$2,400$1,851$1,411$1,065$797$549
25 years$2,279$1,737$1,307$973$717$484
26 years$2,168$1,633$1,212$889$646$428
27 years$2,065$1,537$1,126$814$582$378
28 years$1,970$1,448$1,047$746$525$335
29 years$1,882$1,366$974$684$474$296
30 years$1,799$1,290$907$628$429$262
31 years$1,723$1,219$846$576$387$232
32 years$1,651$1,154$789$530$350$206
33 years$1,583$1,093$737$487$317$183
34 years$1,520$1,036$688$448$287$162
35 years$1,460$982$644$413$260$144
36 years$1,404$932$602$380$236$127
37 years$1,351$886$563$350$214$113
38 years$1,301$842$528$323$194$100
39 years$1,253$800$494$298$176$89
40 years$1,209$761$463$274$159$79
41 years$1,166$725$435$253$144$70
42 years$1,125$690$408$234$131$62
43 years$1,087$658$382$216$119$55
44 years$1,050$627$359$199$108$49
45 years$1,015$598$337$184$98$44
46 years$982$570$317$170$89$39
47 years$950$544$297$157$81$35
48 years$920$520$280$145$73$31
49 years$891$496$263$134$67$27
50 years$863$474$247$124$61$24

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $884,000, adding $4,995 every year, while hoping to spend $53,698 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: 45/31/24 Blend
39$884,000$884,000$884,000$884,000
40$979,320$932,468$918,766$1,016,409
41$1,022,077$921,025$892,411$1,031,659
42$1,067,395$907,221$863,373$1,042,565
43$1,115,478$890,885$831,505$1,053,322
44$1,166,552$871,833$796,655$1,063,942
45$1,220,860$849,872$758,663$1,074,444
46$1,278,669$824,798$717,360$1,084,854
47$1,340,274$796,393$672,572$1,095,203
48$1,405,995$764,429$624,116$1,105,531
49$1,476,183$728,663$571,800$1,115,884
50$1,551,223$688,837$515,425$1,126,322
51$1,631,539$644,681$454,783$1,136,914
52$1,717,592$595,907$389,655$1,147,743
53$1,809,892$542,212$319,813$1,158,904
54$1,908,995$483,274$245,021$1,170,513
55$2,015,513$418,755$165,030$1,182,699
56$2,130,118$348,296$79,581$1,195,616
57$2,253,546$271,519$0$1,209,440
58$2,386,608$188,024$0$1,227,344
59$2,530,194$97,389$0$1,268,529
60$2,685,279$0$0$1,312,932
61$2,852,940$0$0$1,361,218
62$3,034,355$0$0$1,449,495
63$3,230,822$0$0$1,545,183
64$3,443,768$0$0$1,648,988
65$3,674,763$0$0$1,761,687
66$3,925,530$0$0$1,884,132
67$4,197,967$0$0$2,017,264
68$4,494,162$0$0$2,162,115
69$4,816,411$0$0$2,319,822
70$5,167,241$0$0$2,491,637
71$5,549,431$0$0$2,678,935
72$5,966,041$0$0$2,883,231
73$6,420,439$0$0$3,106,194
74$6,916,329$0$0$3,349,659
75$7,457,792$0$0$3,615,646
76$8,049,319$0$0$3,906,379
77$8,695,852$0$0$4,224,309
78$9,402,834$0$0$4,572,131
79$10,176,260$0$0$4,952,814
80$11,022,726$0$0$5,369,628
81$11,949,499$0$0$5,826,174
82$12,964,580$0$0$6,326,416
83$14,076,781$0$0$6,874,721
84$15,295,806$0$0$7,475,898
85$16,632,341$0$0$8,135,243
86$18,098,159$0$0$8,858,591
87$19,706,224$0$0$9,652,367
88$21,470,816$0$0$10,523,650
89$23,407,665$0$0$11,480,236
90$25,534,097$0$0$12,530,713
91$27,869,199$0$0$13,684,544
92$30,433,997$0$0$14,952,149
93$33,251,651$0$0$16,345,012
94$36,347,677$0$0$17,875,780
95$39,750,186$0$0$19,558,390
96$43,490,144$0$0$21,408,193
97$47,601,670$0$0$23,442,103
98$52,122,350$0$0$25,678,756
99$57,093,597$0$0$28,138,683
100$62,561,036$0$0$30,844,504