Can I retire at age 40 with 889,000?

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 $889,000?

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$73,413$72,759$72,121$71,498$70,890$68,104
2 years$36,343$35,666$35,010$34,374$33,757$30,985
3 years$23,988$23,308$22,654$22,024$21,417$18,745
4 years$17,812$17,134$16,486$15,867$15,275$12,724
5 years$14,107$13,433$12,794$12,187$11,612$9,188
6 years$11,638$10,969$10,339$9,746$9,188$6,893
7 years$9,875$9,212$8,592$8,013$7,472$5,306
8 years$8,553$7,896$7,287$6,722$6,199$4,158
9 years$7,526$6,875$6,276$5,726$5,220$3,303
10 years$6,705$6,060$5,472$4,935$4,448$2,650
11 years$6,033$5,395$4,817$4,295$3,825$2,142
12 years$5,474$4,842$4,275$3,768$3,315$1,742
13 years$5,001$4,376$3,820$3,326$2,891$1,424
14 years$4,596$3,978$3,432$2,953$2,534$1,168
15 years$4,245$3,634$3,099$2,633$2,231$961
16 years$3,939$3,334$2,809$2,358$1,972$793
17 years$3,668$3,070$2,556$2,118$1,748$656
18 years$3,429$2,837$2,334$1,909$1,555$543
19 years$3,214$2,629$2,136$1,725$1,386$450
20 years$3,021$2,443$1,961$1,562$1,238$374
21 years$2,847$2,276$1,803$1,418$1,108$311
22 years$2,689$2,124$1,662$1,289$993$258
23 years$2,545$1,987$1,535$1,174$891$215
24 years$2,413$1,862$1,419$1,071$801$179
25 years$2,292$1,747$1,315$978$721$149
26 years$2,180$1,642$1,219$894$649$124
27 years$2,077$1,545$1,132$819$585$103
28 years$1,981$1,456$1,052$750$528$86
29 years$1,892$1,374$979$688$477$72
30 years$1,810$1,297$912$631$431$60
31 years$1,732$1,226$850$580$390$50
32 years$1,660$1,160$793$533$352$42
33 years$1,592$1,099$741$490$319$35
34 years$1,528$1,042$692$451$289$29
35 years$1,468$988$647$415$262$24
36 years$1,412$938$605$382$237$20
37 years$1,359$891$567$352$215$17
38 years$1,308$846$531$325$195$14
39 years$1,261$805$497$299$177$12
40 years$1,215$766$466$276$160$10
41 years$1,173$729$437$255$145$8
42 years$1,132$694$410$235$132$7
43 years$1,093$661$385$217$120$6
44 years$1,056$630$361$200$109$5
45 years$1,021$601$339$185$99$4
46 years$988$573$318$171$90$3
47 years$956$547$299$158$81$3
48 years$925$522$281$146$74$2
49 years$896$499$264$135$67$2
50 years$868$477$248$125$61$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $889,000, adding $5,067 every year, while hoping to spend $43,033 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: 76/18/6 Blend
39$889,000$889,000$889,000$889,000
40$984,905$937,788$924,008$1,058,786
41$1,039,578$937,952$909,176$1,108,195
42$1,098,386$936,683$892,404$1,156,295
43$1,161,705$933,864$873,583$1,207,758
44$1,229,947$929,372$852,596$1,262,898
45$1,303,567$923,077$829,324$1,322,065
46$1,383,064$914,840$803,639$1,385,642
47$1,468,986$904,516$775,410$1,454,051
48$1,561,934$891,949$744,498$1,527,761
49$1,662,570$876,974$710,758$1,607,285
50$1,771,623$859,417$674,039$1,693,190
51$1,889,893$839,093$634,184$1,786,103
52$2,018,260$815,806$591,027$1,886,713
53$2,157,692$789,349$544,395$1,995,782
54$2,309,253$759,504$494,109$2,114,149
55$2,474,114$726,037$439,979$2,242,739
56$2,653,566$688,705$381,810$2,382,573
57$2,849,024$647,246$319,396$2,534,778
58$3,062,050$601,387$252,521$2,700,595
59$3,294,362$550,837$180,963$2,881,394
60$3,547,848$495,290$104,487$3,078,686
61$3,824,591$434,421$22,849$3,294,137
62$4,126,879$367,887$0$3,529,585
63$4,457,234$295,327$0$3,791,172
64$4,818,432$216,358$0$4,078,847
65$5,213,529$130,577$0$4,393,629
66$5,645,889$37,556$0$4,738,255
67$6,119,219$0$0$5,115,744
68$6,637,598$0$0$5,541,934
69$7,205,519$0$0$6,017,038
70$7,827,932$0$0$6,537,762
71$8,510,285$0$0$7,108,670
72$9,258,581$0$0$7,734,789
73$10,079,431$0$0$8,421,655
74$10,980,117$0$0$9,175,365
75$11,968,659$0$0$10,002,636
76$13,053,892$0$0$10,910,868
77$14,245,549$0$0$11,908,211
78$15,554,349$0$0$13,003,642
79$16,992,104$0$0$14,207,052
80$18,571,823$0$0$15,529,336
81$20,307,838$0$0$16,982,498
82$22,215,940$0$0$18,579,762
83$24,313,525$0$0$20,335,695
84$26,619,758$0$0$22,266,349
85$29,155,753$0$0$24,389,407
86$31,944,775$0$0$26,724,351
87$35,012,453$0$0$29,292,647
88$38,387,028$0$0$32,117,945
89$42,099,614$0$0$35,226,303
90$46,184,492$0$0$38,646,432
91$50,679,436$0$0$42,409,966
92$55,626,063$0$0$46,551,760
93$61,070,233$0$0$51,110,222
94$67,062,472$0$0$56,127,667
95$73,658,457$0$0$61,650,723
96$80,919,535$0$0$67,730,770
97$88,913,301$0$0$74,424,419
98$97,714,241$0$0$81,794,051
99$107,404,427$0$0$89,908,403
100$118,074,298$0$0$98,843,217