Can I retire at age 40 with 890,000?

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 $890,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.9%
1 years$73,495$72,841$72,202$71,579$70,970$69,537
2 years$36,384$35,706$35,050$34,413$33,795$32,358
3 years$24,015$23,334$22,679$22,049$21,441$20,044
4 years$17,832$17,153$16,505$15,885$15,292$13,946
5 years$14,123$13,448$12,808$12,201$11,625$10,334
6 years$11,651$10,982$10,351$9,757$9,198$7,964
7 years$9,886$9,222$8,602$8,022$7,481$6,303
8 years$8,563$7,905$7,295$6,729$6,206$5,084
9 years$7,534$6,883$6,283$5,732$5,226$4,160
10 years$6,712$6,067$5,478$4,941$4,453$3,442
11 years$6,040$5,401$4,823$4,300$3,830$2,872
12 years$5,480$4,848$4,280$3,772$3,319$2,413
13 years$5,006$4,381$3,824$3,330$2,894$2,038
14 years$4,601$3,982$3,436$2,956$2,537$1,730
15 years$4,250$3,638$3,102$2,636$2,234$1,473
16 years$3,943$3,338$2,812$2,360$1,974$1,259
17 years$3,673$3,074$2,559$2,121$1,750$1,079
18 years$3,432$2,840$2,336$1,911$1,556$926
19 years$3,218$2,632$2,139$1,727$1,387$797
20 years$3,025$2,446$1,963$1,564$1,239$687
21 years$2,851$2,278$1,805$1,420$1,109$593
22 years$2,692$2,127$1,664$1,291$994$512
23 years$2,548$1,989$1,536$1,175$892$443
24 years$2,416$1,864$1,421$1,072$802$383
25 years$2,295$1,749$1,316$979$722$332
26 years$2,183$1,644$1,221$895$650$288
27 years$2,079$1,547$1,133$819$586$250
28 years$1,984$1,458$1,054$751$529$216
29 years$1,895$1,375$980$688$477$188
30 years$1,812$1,299$913$632$431$163
31 years$1,734$1,228$851$580$390$142
32 years$1,662$1,162$794$533$353$123
33 years$1,594$1,100$742$490$319$107
34 years$1,530$1,043$693$451$289$93
35 years$1,470$989$648$415$262$81
36 years$1,414$939$606$383$237$70
37 years$1,360$892$567$352$215$61
38 years$1,310$847$531$325$195$53
39 years$1,262$806$498$300$177$46
40 years$1,217$767$467$276$160$40
41 years$1,174$730$437$255$145$35
42 years$1,133$695$410$235$132$30
43 years$1,094$662$385$217$120$26
44 years$1,057$631$361$201$109$23
45 years$1,022$602$339$185$99$20
46 years$989$574$319$171$90$17
47 years$957$548$299$158$81$15
48 years$926$523$281$146$74$13
49 years$897$499$265$135$67$11
50 years$869$477$249$125$61$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $890,000, adding $2,253 every year, while hoping to spend $33,404 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: 87/6/7 Blend
39$890,000$890,000$890,000$890,000
40$983,104$935,934$922,139$1,067,942
41$1,047,839$946,253$917,489$1,133,880
42$1,118,057$955,958$911,564$1,201,489
43$1,194,283$964,984$904,285$1,274,719
44$1,277,093$973,261$895,572$1,354,115
45$1,367,121$980,715$885,337$1,440,272
46$1,465,063$987,267$873,493$1,533,849
47$1,571,689$992,832$859,944$1,635,568
48$1,687,842$997,322$844,593$1,746,228
49$1,814,452$1,000,640$827,337$1,866,705
50$1,952,541$1,002,687$808,067$1,997,966
51$2,103,235$1,003,353$786,672$2,141,075
52$2,267,773$1,002,526$763,034$2,297,206
53$2,447,520$1,000,083$737,029$2,467,649
54$2,643,976$995,896$708,529$2,653,827
55$2,858,795$989,829$677,398$2,857,306
56$3,093,797$981,736$643,496$3,079,813
57$3,350,987$971,463$606,676$3,323,248
58$3,632,572$958,849$566,783$3,589,708
59$3,940,981$943,719$523,658$3,881,498
60$4,278,891$925,892$477,131$4,201,162
61$4,649,251$905,173$427,027$4,551,501
62$5,055,304$881,357$373,162$4,935,601
63$5,500,629$854,226$315,346$5,356,863
64$5,989,161$823,551$253,378$5,819,033
65$6,525,238$789,089$187,050$6,326,239
66$7,113,639$750,581$116,143$6,883,031
67$7,759,626$707,755$40,429$7,494,420
68$8,468,996$660,323$0$8,165,929
69$9,248,135$607,980$0$8,906,660
70$10,104,079$550,405$0$9,723,721
71$11,044,576$487,256$0$10,621,499
72$12,078,166$418,174$0$11,608,156
73$13,214,253$342,780$0$12,692,687
74$14,463,201$260,670$0$13,885,000
75$15,836,427$171,422$0$15,196,017
76$17,346,507$74,586$0$16,637,766
77$19,007,301$0$0$18,223,505
78$20,834,076$0$0$19,969,843
79$22,843,656$0$0$21,896,361
80$25,054,575$0$0$24,015,907
81$27,487,254$0$0$26,348,060
82$30,164,196$0$0$28,914,391
83$33,110,193$0$0$31,738,672
84$36,352,563$0$0$34,847,092
85$39,921,407$0$0$38,268,510
86$43,849,890$0$0$42,034,723
87$48,174,559$0$0$46,180,769
88$52,935,680$0$0$50,745,255
89$58,177,627$0$0$55,770,720
90$63,949,292$0$0$61,304,041
91$70,304,548$0$0$67,396,869
92$77,302,763$0$0$74,106,119
93$85,009,351$0$0$81,494,509
94$93,496,394$0$0$89,631,145
95$102,843,323$0$0$98,592,180
96$113,137,663$0$0$108,461,529
97$124,475,861$0$0$119,331,659
98$136,964,198$0$0$131,304,464
99$150,719,786$0$0$144,492,227
100$165,871,680$0$0$159,018,674