Can I retire at age 40 with 886,000?

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 $886,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$73,165$72,513$71,877$71,257$70,651$70,206
2 years$36,220$35,546$34,892$34,258$33,643$33,194
3 years$23,907$23,230$22,577$21,950$21,345$20,906
4 years$17,752$17,076$16,431$15,813$15,223$14,798
5 years$14,059$13,388$12,751$12,146$11,572$11,161
6 years$11,599$10,932$10,305$9,713$9,157$8,761
7 years$9,842$9,181$8,563$7,986$7,447$7,067
8 years$8,524$7,870$7,262$6,699$6,178$5,813
9 years$7,501$6,852$6,255$5,706$5,203$4,853
10 years$6,682$6,040$5,453$4,919$4,433$4,098
11 years$6,013$5,377$4,801$4,281$3,813$3,493
12 years$5,455$4,826$4,261$3,755$3,304$2,999
13 years$4,984$4,361$3,807$3,315$2,881$2,590
14 years$4,580$3,964$3,420$2,943$2,526$2,249
15 years$4,231$3,621$3,088$2,624$2,224$1,960
16 years$3,925$3,323$2,800$2,350$1,965$1,715
17 years$3,656$3,060$2,548$2,111$1,743$1,505
18 years$3,417$2,828$2,326$1,903$1,549$1,325
19 years$3,203$2,621$2,129$1,719$1,381$1,168
20 years$3,011$2,435$1,954$1,557$1,234$1,032
21 years$2,838$2,268$1,797$1,413$1,104$914
22 years$2,680$2,117$1,656$1,285$989$810
23 years$2,536$1,980$1,529$1,170$888$719
24 years$2,405$1,855$1,414$1,067$798$639
25 years$2,284$1,741$1,310$975$718$569
26 years$2,173$1,636$1,215$891$647$506
27 years$2,070$1,540$1,128$816$583$451
28 years$1,975$1,451$1,049$747$526$402
29 years$1,886$1,369$976$685$475$359
30 years$1,804$1,293$909$629$430$320
31 years$1,726$1,222$848$578$388$286
32 years$1,654$1,156$791$531$351$256
33 years$1,587$1,095$738$488$318$229
34 years$1,523$1,038$690$449$288$204
35 years$1,463$985$645$414$261$183
36 years$1,407$934$603$381$236$164
37 years$1,354$888$565$351$214$146
38 years$1,304$843$529$323$194$131
39 years$1,256$802$496$298$176$117
40 years$1,211$763$464$275$160$105
41 years$1,169$726$435$254$145$94
42 years$1,128$692$409$234$131$84
43 years$1,089$659$383$216$119$76
44 years$1,053$628$360$200$108$68
45 years$1,018$599$338$184$98$61
46 years$984$572$317$170$89$54
47 years$952$545$298$157$81$49
48 years$922$521$280$145$74$44
49 years$893$497$263$134$67$39
50 years$865$475$248$124$61$35

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $886,000, adding $6,164 every year, while hoping to spend $42,549 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: 25/45/30 Blend
39$886,000$886,000$886,000$886,000
40$982,730$935,772$922,039$997,985
41$1,037,697$936,353$907,656$1,011,917
42$1,096,844$935,537$891,364$1,022,858
43$1,160,553$933,209$873,056$1,033,719
44$1,229,244$929,250$852,617$1,044,525
45$1,303,375$923,532$829,929$1,055,305
46$1,383,454$915,920$804,866$1,066,095
47$1,470,035$906,269$777,298$1,076,941
48$1,563,730$894,427$747,088$1,087,897
49$1,665,210$880,233$714,095$1,099,027
50$1,775,213$863,517$678,169$1,110,408
51$1,894,551$844,096$639,155$1,122,130
52$2,024,118$821,778$596,888$1,134,298
53$2,164,894$796,362$551,200$1,147,034
54$2,317,960$767,630$501,913$1,160,478
55$2,484,505$735,357$448,840$1,174,795
56$2,665,836$699,301$391,787$1,190,169
57$2,863,392$659,208$330,553$1,206,814
58$3,078,756$614,807$264,925$1,224,975
59$3,313,671$565,815$194,682$1,244,928
60$3,570,056$511,930$119,594$1,266,988
61$3,850,021$452,834$39,419$1,291,512
62$4,155,890$388,190$0$1,318,904
63$4,490,224$317,644$0$1,364,389
64$4,855,838$240,819$0$1,428,138
65$5,255,834$157,320$0$1,498,187
66$5,693,628$66,728$0$1,575,277
67$6,172,980$0$0$1,660,236
68$6,698,032$0$0$1,769,531
69$7,273,345$0$0$1,925,643
70$7,903,942$0$0$2,096,910
71$8,595,354$0$0$2,284,854
72$9,353,674$0$0$2,491,152
73$10,185,612$0$0$2,717,649
74$11,098,562$0$0$2,966,379
75$12,100,663$0$0$3,239,583
76$13,200,886$0$0$3,539,728
77$14,409,109$0$0$3,869,535
78$15,736,215$0$0$4,231,997
79$17,194,193$0$0$4,630,415
80$18,796,251$0$0$5,068,425
81$20,556,939$0$0$5,550,031
82$22,492,286$0$0$6,079,647
83$24,619,953$0$0$6,662,134
84$26,959,395$0$0$7,302,850
85$29,532,050$0$0$8,007,695
86$32,361,532$0$0$8,783,174
87$35,473,865$0$0$9,636,450
88$38,897,716$0$0$10,575,418
89$42,664,674$0$0$11,608,776
90$46,809,542$0$0$12,746,109
91$51,370,669$0$0$13,997,977
92$56,390,307$0$0$15,376,016
93$61,915,012$0$0$16,893,048
94$67,996,084$0$0$18,563,200
95$74,690,046$0$0$20,402,040
96$82,059,180$0$0$22,426,722
97$90,172,115$0$0$24,656,148
98$99,104,471$0$0$27,111,144
99$108,939,572$0$0$29,814,662
100$119,769,238$0$0$32,791,992