Can I retire at age 40 with 887,000?

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 $887,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$73,248$72,595$71,959$71,337$70,731$69,445
2 years$36,261$35,586$34,931$34,297$33,681$32,390
3 years$23,934$23,256$22,603$21,974$21,369$20,113
4 years$17,772$17,095$16,449$15,831$15,240$14,029
5 years$14,075$13,403$12,765$12,160$11,585$10,423
6 years$11,612$10,945$10,316$9,724$9,167$8,054
7 years$9,853$9,191$8,573$7,995$7,455$6,392
8 years$8,534$7,879$7,270$6,707$6,185$5,172
9 years$7,509$6,860$6,262$5,713$5,209$4,244
10 years$6,689$6,047$5,459$4,924$4,438$3,522
11 years$6,019$5,383$4,806$4,286$3,817$2,948
12 years$5,461$4,831$4,265$3,759$3,308$2,485
13 years$4,990$4,366$3,811$3,319$2,884$2,106
14 years$4,585$3,969$3,424$2,946$2,528$1,793
15 years$4,236$3,625$3,092$2,627$2,226$1,533
16 years$3,930$3,326$2,803$2,352$1,967$1,315
17 years$3,660$3,063$2,551$2,114$1,745$1,131
18 years$3,421$2,831$2,328$1,905$1,551$974
19 years$3,207$2,623$2,131$1,721$1,383$841
20 years$3,015$2,438$1,956$1,559$1,235$728
21 years$2,841$2,271$1,799$1,415$1,105$630
22 years$2,683$2,120$1,658$1,286$991$547
23 years$2,539$1,983$1,531$1,172$889$475
24 years$2,408$1,857$1,416$1,068$799$412
25 years$2,287$1,743$1,312$976$719$359
26 years$2,175$1,638$1,216$892$648$312
27 years$2,072$1,542$1,130$817$584$272
28 years$1,977$1,453$1,050$748$527$237
29 years$1,888$1,371$977$686$476$206
30 years$1,806$1,294$910$630$430$180
31 years$1,728$1,224$849$578$389$157
32 years$1,656$1,158$792$532$352$137
33 years$1,588$1,096$739$489$318$119
34 years$1,525$1,039$691$450$288$104
35 years$1,465$986$646$414$261$91
36 years$1,409$936$604$381$236$79
37 years$1,356$889$565$351$214$69
38 years$1,305$844$529$324$194$61
39 years$1,258$803$496$299$176$53
40 years$1,213$764$465$275$160$46
41 years$1,170$727$436$254$145$40
42 years$1,129$693$409$234$132$35
43 years$1,091$660$384$216$119$31
44 years$1,054$629$360$200$108$27
45 years$1,019$600$338$185$98$24
46 years$985$572$318$170$89$21
47 years$954$546$298$158$81$18
48 years$923$521$280$146$74$16
49 years$894$498$264$135$67$14
50 years$866$476$248$124$61$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $887,000, adding $5,707 every year, while hoping to spend $41,629 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: 47/33/20 Blend
39$887,000$887,000$887,000$887,000
40$983,361$936,350$922,601$1,023,743
41$1,039,371$937,938$909,215$1,054,089
42$1,099,698$938,209$893,986$1,082,380
43$1,164,740$937,054$876,807$1,112,219
44$1,234,932$934,357$857,568$1,143,769
45$1,310,752$929,998$836,154$1,177,212
46$1,392,726$923,845$812,442$1,212,750
47$1,481,432$915,762$786,307$1,250,610
48$1,577,505$905,601$757,616$1,291,041
49$1,681,645$893,210$726,230$1,334,325
50$1,794,619$878,423$692,005$1,380,772
51$1,917,271$861,067$654,788$1,430,729
52$2,050,532$840,958$614,423$1,484,580
53$2,195,422$817,902$570,742$1,542,753
54$2,353,068$791,691$523,574$1,605,724
55$2,524,704$762,108$472,738$1,674,021
56$2,711,694$728,921$418,045$1,748,230
57$2,915,536$691,887$359,298$1,829,001
58$3,137,877$650,746$296,291$1,917,058
59$3,380,534$605,226$228,810$2,013,201
60$3,645,503$555,036$156,629$2,118,318
61$3,934,983$499,873$79,516$2,233,394
62$4,251,397$439,411$0$2,359,522
63$4,597,408$373,312$0$2,498,503
64$4,975,953$301,213$0$2,669,232
65$5,390,261$222,733$0$2,856,265
66$5,843,892$137,472$0$3,061,305
67$6,340,764$45,002$0$3,286,233
68$6,885,192$0$0$3,533,129
69$7,481,928$0$0$3,824,306
70$8,136,206$0$0$4,161,580
71$8,853,790$0$0$4,531,593
72$9,641,031$0$0$4,937,631
73$10,504,921$0$0$5,383,315
74$11,453,164$0$0$5,872,634
75$12,494,245$0$0$6,409,979
76$13,637,511$0$0$7,000,192
77$14,893,260$0$0$7,648,603
78$16,272,833$0$0$8,361,085
79$17,788,727$0$0$9,144,108
80$19,454,709$0$0$10,004,801
81$21,285,944$0$0$10,951,017
82$23,299,141$0$0$11,991,406
83$25,512,708$0$0$13,135,502
84$27,946,926$0$0$14,393,807
85$30,624,139$0$0$15,777,891
86$33,568,968$0$0$17,300,502
87$36,808,535$0$0$18,975,688
88$40,372,728$0$0$20,818,925
89$44,294,474$0$0$22,847,265
90$48,610,057$0$0$25,079,498
91$53,359,451$0$0$27,536,325
92$58,586,705$0$0$30,240,558
93$64,340,354$0$0$33,217,332
94$70,673,876$0$0$36,494,342
95$77,646,197$0$0$40,102,106
96$85,322,248$0$0$44,074,250
97$93,773,575$0$0$48,447,827
98$103,079,014$0$0$53,263,666
99$113,325,434$0$0$58,566,757
100$124,608,558$0$0$64,406,674