Can I retire at age 40 with 887,000?

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 $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%16.6%
1 years$73,248$72,595$71,959$71,337$70,731$68,825
2 years$36,261$35,586$34,931$34,297$33,681$31,775
3 years$23,934$23,256$22,603$21,974$21,369$19,522
4 years$17,772$17,095$16,449$15,831$15,240$13,467
5 years$14,075$13,403$12,765$12,160$11,585$9,890
6 years$11,612$10,945$10,316$9,724$9,167$7,551
7 years$9,853$9,191$8,573$7,995$7,455$5,919
8 years$8,534$7,879$7,270$6,707$6,185$4,728
9 years$7,509$6,860$6,262$5,713$5,209$3,829
10 years$6,689$6,047$5,459$4,924$4,438$3,134
11 years$6,019$5,383$4,806$4,286$3,817$2,587
12 years$5,461$4,831$4,265$3,759$3,308$2,150
13 years$4,990$4,366$3,811$3,319$2,884$1,795
14 years$4,585$3,969$3,424$2,946$2,528$1,506
15 years$4,236$3,625$3,092$2,627$2,226$1,268
16 years$3,930$3,326$2,803$2,352$1,967$1,070
17 years$3,660$3,063$2,551$2,114$1,745$906
18 years$3,421$2,831$2,328$1,905$1,551$768
19 years$3,207$2,623$2,131$1,721$1,383$653
20 years$3,015$2,438$1,956$1,559$1,235$555
21 years$2,841$2,271$1,799$1,415$1,105$473
22 years$2,683$2,120$1,658$1,286$991$403
23 years$2,539$1,983$1,531$1,172$889$344
24 years$2,408$1,857$1,416$1,068$799$294
25 years$2,287$1,743$1,312$976$719$251
26 years$2,175$1,638$1,216$892$648$215
27 years$2,072$1,542$1,130$817$584$184
28 years$1,977$1,453$1,050$748$527$157
29 years$1,888$1,371$977$686$476$134
30 years$1,806$1,294$910$630$430$115
31 years$1,728$1,224$849$578$389$99
32 years$1,656$1,158$792$532$352$84
33 years$1,588$1,096$739$489$318$72
34 years$1,525$1,039$691$450$288$62
35 years$1,465$986$646$414$261$53
36 years$1,409$936$604$381$236$46
37 years$1,356$889$565$351$214$39
38 years$1,305$844$529$324$194$33
39 years$1,258$803$496$299$176$29
40 years$1,213$764$465$275$160$25
41 years$1,170$727$436$254$145$21
42 years$1,129$693$409$234$132$18
43 years$1,091$660$384$216$119$16
44 years$1,054$629$360$200$108$13
45 years$1,019$600$338$185$98$11
46 years$985$572$318$170$89$10
47 years$954$546$298$158$81$8
48 years$923$521$280$146$74$7
49 years$894$498$264$135$67$6
50 years$866$476$248$124$61$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $887,000, adding $6,094 every year, while hoping to spend $48,815 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: 47/37/16 Blend
39$887,000$887,000$887,000$887,000
40$983,760$936,749$923,000$1,025,287
41$1,032,165$930,711$901,982$1,048,698
42$1,083,871$922,741$878,624$1,068,639
43$1,139,163$912,693$852,795$1,089,227
44$1,198,354$900,411$824,361$1,110,540
45$1,261,788$885,733$793,178$1,132,670
46$1,329,839$868,483$759,098$1,155,718
47$1,402,921$848,477$721,967$1,179,801
48$1,481,487$825,520$681,620$1,205,053
49$1,566,034$799,406$637,890$1,231,621
50$1,657,107$769,915$590,597$1,259,675
51$1,755,308$736,816$539,558$1,289,405
52$1,861,293$699,864$484,577$1,321,025
53$1,975,789$658,801$425,454$1,354,776
54$2,099,588$613,351$361,976$1,390,930
55$2,233,567$563,227$293,923$1,429,789
56$2,378,687$508,120$221,065$1,471,696
57$2,536,003$447,708$143,160$1,517,033
58$2,706,678$381,649$59,959$1,566,226
59$2,891,990$309,580$0$1,619,756
60$3,093,345$231,121$0$1,683,077
61$3,312,288$145,869$0$1,763,111
62$3,550,522$53,396$0$1,850,325
63$3,809,917$0$0$1,945,513
64$4,092,534$0$0$2,068,591
65$4,400,639$0$0$2,226,562
66$4,736,726$0$0$2,398,975
67$5,103,543$0$0$2,587,251
68$5,504,109$0$0$2,792,954
69$5,941,754$0$0$3,017,806
70$6,420,140$0$0$3,263,701
71$6,943,300$0$0$3,532,728
72$7,515,673$0$0$3,827,183
73$8,142,149$0$0$4,149,598
74$8,828,112$0$0$4,502,757
75$9,579,491$0$0$4,889,732
76$10,402,814$0$0$5,313,900
77$11,305,271$0$0$5,778,983
78$12,294,782$0$0$6,289,082
79$13,380,070$0$0$6,848,711
80$14,570,739$0$0$7,462,843
81$15,877,374$0$0$8,136,958
82$17,311,628$0$0$8,877,089
83$18,886,341$0$0$9,689,883
84$20,615,655$0$0$10,582,662
85$22,515,152$0$0$11,563,495
86$24,601,993$0$0$12,641,266
87$26,895,087$0$0$13,825,767
88$29,415,262$0$0$15,127,782
89$32,185,466$0$0$16,559,193
90$35,230,982$0$0$18,133,093
91$38,579,662$0$0$19,863,903
92$42,262,194$0$0$21,767,515
93$46,312,387$0$0$23,861,437
94$50,767,493$0$0$26,164,958
95$55,668,554$0$0$28,699,332
96$61,060,790$0$0$31,487,978
97$66,994,027$0$0$34,556,696
98$73,523,162$0$0$37,933,917
99$80,708,686$0$0$41,650,967
100$88,617,246$0$0$45,742,362