Can I retire at age 40 with 888,000?

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 $888,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.8%
1 years$73,330$72,677$72,040$71,418$70,810$68,028
2 years$36,302$35,626$34,971$34,335$33,719$30,950
3 years$23,961$23,282$22,628$21,999$21,393$18,724
4 years$17,792$17,115$16,468$15,849$15,258$12,709
5 years$14,091$13,418$12,780$12,174$11,599$9,178
6 years$11,625$10,957$10,328$9,735$9,178$6,885
7 years$9,864$9,202$8,582$8,004$7,464$5,300
8 years$8,544$7,887$7,279$6,714$6,192$4,154
9 years$7,517$6,867$6,269$5,719$5,215$3,299
10 years$6,697$6,053$5,466$4,930$4,443$2,647
11 years$6,026$5,389$4,812$4,291$3,821$2,140
12 years$5,467$4,837$4,270$3,763$3,311$1,740
13 years$4,995$4,371$3,815$3,322$2,888$1,422
14 years$4,591$3,973$3,428$2,949$2,531$1,167
15 years$4,240$3,630$3,095$2,630$2,229$960
16 years$3,934$3,330$2,806$2,355$1,970$792
17 years$3,664$3,067$2,553$2,116$1,746$655
18 years$3,425$2,834$2,331$1,907$1,553$542
19 years$3,211$2,626$2,134$1,723$1,384$450
20 years$3,018$2,441$1,958$1,561$1,236$373
21 years$2,844$2,273$1,801$1,416$1,106$310
22 years$2,686$2,122$1,660$1,288$992$258
23 years$2,542$1,985$1,533$1,173$890$215
24 years$2,410$1,860$1,418$1,070$800$179
25 years$2,289$1,745$1,313$977$720$149
26 years$2,178$1,640$1,218$893$649$124
27 years$2,075$1,544$1,131$818$585$103
28 years$1,979$1,454$1,051$749$528$86
29 years$1,890$1,372$978$687$476$72
30 years$1,808$1,296$911$630$430$60
31 years$1,730$1,225$850$579$389$50
32 years$1,658$1,159$793$532$352$42
33 years$1,590$1,098$740$489$319$35
34 years$1,527$1,040$691$450$288$29
35 years$1,467$987$646$414$261$24
36 years$1,410$937$605$382$237$20
37 years$1,357$890$566$352$215$17
38 years$1,307$845$530$324$195$14
39 years$1,259$804$497$299$176$12
40 years$1,214$765$465$276$160$10
41 years$1,171$728$436$254$145$8
42 years$1,131$693$409$235$132$7
43 years$1,092$661$384$217$120$6
44 years$1,055$630$361$200$108$5
45 years$1,020$600$339$185$98$4
46 years$987$573$318$171$89$3
47 years$955$547$299$158$81$3
48 years$924$522$281$146$74$2
49 years$895$498$264$135$67$2
50 years$867$476$248$124$61$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $888,000, adding $4,020 every year, while hoping to spend $41,724 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: 55/22/23 Blend
39$888,000$888,000$888,000$888,000
40$982,723$935,659$921,895$1,030,389
41$1,038,566$937,112$908,384$1,064,980
42$1,098,708$937,238$893,023$1,097,914
43$1,163,541$935,928$875,704$1,132,898
44$1,233,499$933,065$856,317$1,170,142
45$1,309,059$928,528$834,746$1,209,878
46$1,390,742$922,185$810,870$1,252,365
47$1,479,124$913,899$784,560$1,297,889
48$1,574,837$903,522$755,685$1,346,767
49$1,678,575$890,899$724,105$1,399,352
50$1,791,101$875,865$689,674$1,456,035
51$1,913,257$858,246$652,242$1,517,248
52$2,045,966$837,857$611,649$1,583,470
53$2,190,244$814,501$567,729$1,655,234
54$2,347,210$787,973$520,309$1,733,128
55$2,518,094$758,051$469,207$1,817,804
56$2,704,248$724,505$414,235$1,909,984
57$2,907,164$687,088$355,194$2,010,468
58$3,128,480$645,541$291,878$2,120,141
59$3,370,002$599,589$224,073$2,239,981
60$3,633,714$548,941$151,551$2,371,072
61$3,921,805$493,291$74,080$2,514,613
62$4,236,680$432,313$0$2,671,931
63$4,580,990$365,666$0$2,846,600
64$4,957,654$292,986$0$3,057,671
65$5,369,883$213,891$0$3,288,804
66$5,821,216$127,976$0$3,542,049
67$6,315,548$34,815$0$3,819,669
68$6,857,171$0$0$4,124,160
69$7,450,808$0$0$4,474,262
70$8,101,663$0$0$4,867,433
71$8,815,468$0$0$5,298,716
72$9,598,536$0$0$5,771,937
73$10,457,818$0$0$6,291,307
74$11,400,976$0$0$6,861,469
75$12,436,443$0$0$7,487,533
76$13,573,514$0$0$8,175,130
77$14,822,426$0$0$8,930,465
78$16,194,456$0$0$9,760,370
79$17,702,027$0$0$10,672,374
80$19,358,827$0$0$11,674,770
81$21,179,932$0$0$12,776,695
82$23,181,955$0$0$13,988,217
83$25,383,198$0$0$15,320,425
84$27,803,822$0$0$16,785,539
85$30,466,044$0$0$18,397,022
86$33,394,338$0$0$20,169,705
87$36,615,672$0$0$22,119,932
88$40,159,759$0$0$24,265,708
89$44,059,335$0$0$26,626,875
90$48,350,470$0$0$29,225,291
91$53,072,910$0$0$32,085,045
92$58,270,446$0$0$35,232,674
93$63,991,329$0$0$38,697,422
94$70,288,727$0$0$42,511,512
95$77,221,224$0$0$46,710,448
96$84,853,372$0$0$51,333,353
97$93,256,299$0$0$56,423,334
98$102,508,383$0$0$62,027,894
99$112,695,988$0$0$68,199,375
100$123,914,279$0$0$74,995,452