Can I retire at age 40 with 885,000?

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 $885,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.3%
1 years$73,082$72,431$71,796$71,176$70,571$69,892
2 years$36,179$35,506$34,853$34,219$33,605$32,921
3 years$23,880$23,203$22,552$21,925$21,321$20,653
4 years$17,732$17,057$16,412$15,796$15,206$14,560
5 years$14,043$13,373$12,736$12,132$11,559$10,936
6 years$11,585$10,920$10,293$9,702$9,147$8,548
7 years$9,830$9,171$8,553$7,977$7,439$6,864
8 years$8,515$7,861$7,254$6,692$6,171$5,621
9 years$7,492$6,844$6,248$5,700$5,197$4,670
10 years$6,674$6,033$5,447$4,913$4,428$3,925
11 years$6,006$5,371$4,795$4,276$3,808$3,329
12 years$5,449$4,820$4,256$3,751$3,300$2,844
13 years$4,978$4,356$3,802$3,311$2,878$2,444
14 years$4,575$3,960$3,416$2,939$2,523$2,110
15 years$4,226$3,617$3,085$2,621$2,221$1,830
16 years$3,921$3,319$2,797$2,347$1,963$1,592
17 years$3,652$3,057$2,545$2,109$1,741$1,390
18 years$3,413$2,824$2,323$1,901$1,548$1,216
19 years$3,200$2,618$2,127$1,717$1,379$1,066
20 years$3,008$2,432$1,952$1,555$1,232$937
21 years$2,834$2,266$1,795$1,412$1,103$824
22 years$2,677$2,115$1,655$1,283$988$726
23 years$2,534$1,978$1,528$1,169$887$641
24 years$2,402$1,853$1,413$1,066$797$566
25 years$2,282$1,739$1,309$974$718$501
26 years$2,170$1,635$1,214$890$646$443
27 years$2,068$1,538$1,127$815$583$392
28 years$1,972$1,450$1,048$747$526$347
29 years$1,884$1,368$975$685$475$308
30 years$1,801$1,291$908$628$429$273
31 years$1,724$1,221$847$577$388$242
32 years$1,652$1,155$790$530$351$215
33 years$1,585$1,094$738$488$318$191
34 years$1,521$1,037$689$449$287$170
35 years$1,462$983$644$413$260$151
36 years$1,406$933$603$380$236$134
37 years$1,353$887$564$351$214$119
38 years$1,302$843$528$323$194$106
39 years$1,255$801$495$298$176$94
40 years$1,210$762$464$275$159$84
41 years$1,167$726$435$253$145$75
42 years$1,127$691$408$234$131$66
43 years$1,088$658$383$216$119$59
44 years$1,052$628$359$199$108$53
45 years$1,017$598$337$184$98$47
46 years$983$571$317$170$89$42
47 years$951$545$298$157$81$37
48 years$921$520$280$145$73$33
49 years$892$497$263$134$67$29
50 years$864$474$247$124$61$26

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $885,000, adding $3,951 every year, while hoping to spend $59,841 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: 52/30/18 Blend
39$885,000$885,000$885,000$885,000
40$979,345$932,440$918,723$1,025,253
41$1,015,568$914,460$885,830$1,039,230
42$1,053,480$893,592$849,829$1,047,838
43$1,093,191$869,633$810,554$1,055,900
44$1,134,817$842,367$767,828$1,063,383
45$1,178,489$811,563$721,471$1,070,253
46$1,224,344$776,979$671,290$1,076,478
47$1,272,535$738,359$617,085$1,082,029
48$1,323,225$695,430$558,649$1,086,874
49$1,376,594$647,906$495,764$1,090,986
50$1,432,836$595,482$428,202$1,094,338
51$1,492,163$537,839$355,724$1,096,907
52$1,554,807$474,636$278,084$1,098,673
53$1,621,019$405,516$195,022$1,099,619
54$1,691,075$330,098$106,268$1,099,734
55$1,765,276$247,984$11,538$1,099,011
56$1,843,948$158,749$0$1,097,451
57$1,927,452$61,949$0$1,112,262
58$2,016,179$0$0$1,129,744
59$2,110,557$0$0$1,161,925
60$2,211,058$0$0$1,218,020
61$2,318,194$0$0$1,277,869
62$2,432,528$0$0$1,341,795
63$2,554,678$0$0$1,410,150
64$2,685,319$0$0$1,483,318
65$2,825,193$0$0$1,561,724
66$2,975,112$0$0$1,645,830
67$3,135,967$0$0$1,736,148
68$3,308,738$0$0$1,833,234
69$3,494,498$0$0$1,937,704
70$3,694,425$0$0$2,050,230
71$3,909,816$0$0$2,171,552
72$4,142,090$0$0$2,302,483
73$4,392,811$0$0$2,443,917
74$4,663,695$0$0$2,596,834
75$4,956,628$0$0$2,762,313
76$5,273,683$0$0$2,941,540
77$5,617,139$0$0$3,135,819
78$5,989,501$0$0$3,346,582
79$6,393,527$0$0$3,575,407
80$6,832,246$0$0$3,824,028
81$7,308,991$0$0$4,094,351
82$7,827,429$0$0$4,388,477
83$8,391,596$0$0$4,708,713
84$9,005,929$0$0$5,057,600
85$9,675,313$0$0$5,437,934
86$10,405,124$0$0$5,852,794
87$11,201,279$0$0$6,305,564
88$12,070,288$0$0$6,799,975
89$13,019,320$0$0$7,340,130
90$14,056,266$0$0$7,930,547
91$15,189,813$0$0$8,576,201
92$16,429,526$0$0$9,282,568
93$17,785,936$0$0$10,055,681
94$19,270,638$0$0$10,902,179
95$20,896,402$0$0$11,829,376
96$22,677,289$0$0$12,845,325
97$24,628,785$0$0$13,958,895
98$26,767,942$0$0$15,179,855
99$29,113,545$0$0$16,518,963
100$31,686,281$0$0$17,988,069