Can I retire at age 40 with 895,000?

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 $895,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$73,908$73,250$72,608$71,981$71,369$70,129
2 years$36,588$35,907$35,246$34,606$33,985$32,740
3 years$24,150$23,466$22,807$22,172$21,561$20,350
4 years$17,932$17,250$16,597$15,974$15,378$14,209
5 years$14,202$13,524$12,880$12,270$11,690$10,567
6 years$11,716$11,043$10,409$9,812$9,250$8,175
7 years$9,942$9,274$8,650$8,067$7,523$6,495
8 years$8,611$7,950$7,336$6,767$6,241$5,261
9 years$7,577$6,922$6,318$5,764$5,256$4,323
10 years$6,750$6,101$5,509$4,969$4,478$3,591
11 years$6,074$5,431$4,850$4,324$3,851$3,010
12 years$5,511$4,875$4,304$3,793$3,337$2,540
13 years$5,035$4,406$3,845$3,349$2,910$2,156
14 years$4,627$4,004$3,455$2,973$2,551$1,838
15 years$4,274$3,658$3,119$2,651$2,246$1,574
16 years$3,965$3,356$2,828$2,374$1,985$1,351
17 years$3,693$3,091$2,574$2,133$1,760$1,164
18 years$3,452$2,856$2,349$1,922$1,565$1,004
19 years$3,236$2,647$2,151$1,737$1,395$869
20 years$3,042$2,460$1,974$1,573$1,246$752
21 years$2,867$2,291$1,816$1,428$1,115$653
22 years$2,707$2,139$1,673$1,298$1,000$567
23 years$2,562$2,000$1,545$1,182$897$493
24 years$2,429$1,874$1,429$1,078$806$429
25 years$2,307$1,759$1,323$985$726$374
26 years$2,195$1,653$1,227$900$654$326
27 years$2,091$1,556$1,140$824$589$284
28 years$1,995$1,466$1,060$755$532$248
29 years$1,905$1,383$986$692$480$216
30 years$1,822$1,306$918$635$434$189
31 years$1,744$1,235$856$584$392$165
32 years$1,671$1,168$799$536$355$144
33 years$1,603$1,106$746$493$321$126
34 years$1,539$1,049$697$454$291$110
35 years$1,478$995$652$418$263$96
36 years$1,421$944$610$385$239$84
37 years$1,368$897$571$354$216$74
38 years$1,317$852$534$327$196$65
39 years$1,269$810$501$301$178$56
40 years$1,224$771$469$278$161$49
41 years$1,180$734$440$256$146$43
42 years$1,139$699$413$237$133$38
43 years$1,100$666$387$218$120$33
44 years$1,063$635$363$202$109$29
45 years$1,028$605$341$186$99$25
46 years$994$577$321$172$90$22
47 years$962$551$301$159$82$19
48 years$931$526$283$147$74$17
49 years$902$502$266$136$68$15
50 years$874$480$250$125$61$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $895,000, adding $5,104 every year, while hoping to spend $34,962 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: 31/47/22 Blend
39$895,000$895,000$895,000$895,000
40$991,555$944,120$930,247$1,015,398
41$1,055,494$953,182$924,211$1,042,970
42$1,124,783$961,517$916,801$1,069,138
43$1,199,932$969,052$907,934$1,096,584
44$1,281,498$975,709$897,524$1,125,441
45$1,370,098$981,406$885,478$1,155,859
46$1,466,409$986,056$871,703$1,188,003
47$1,571,175$989,565$856,097$1,222,060
48$1,685,216$991,835$838,557$1,258,237
49$1,809,434$992,760$818,974$1,296,766
50$1,944,820$992,229$797,234$1,337,905
51$2,092,466$990,122$773,215$1,381,940
52$2,253,574$986,315$746,795$1,429,192
53$2,429,466$980,673$717,841$1,480,018
54$2,621,600$973,054$686,216$1,534,814
55$2,831,578$963,308$651,779$1,594,020
56$3,061,165$951,276$614,380$1,658,128
57$3,312,303$936,788$573,861$1,727,682
58$3,587,134$919,666$530,061$1,803,288
59$3,888,011$899,720$482,808$1,885,619
60$4,217,530$876,748$431,924$1,975,421
61$4,578,548$850,538$377,223$2,073,524
62$4,974,211$820,866$318,511$2,180,846
63$5,407,984$787,491$255,584$2,298,409
64$5,883,683$750,164$188,231$2,427,343
65$6,405,513$708,615$116,231$2,568,904
66$6,978,102$662,565$39,352$2,724,480
67$7,606,551$611,713$0$2,895,614
68$8,296,478$555,745$0$3,094,031
69$9,054,070$494,328$0$3,322,112
70$9,886,143$427,109$0$3,572,762
71$10,800,208$353,715$0$3,848,363
72$11,804,537$273,755$0$4,151,548
73$12,908,242$186,811$0$4,485,223
74$14,121,364$92,446$0$4,852,602
75$15,454,963$0$0$5,257,235
76$16,921,226$0$0$5,708,113
77$18,533,579$0$0$6,256,641
78$20,306,812$0$0$6,860,057
79$22,257,224$0$0$7,523,926
80$24,402,770$0$0$8,254,380
81$26,763,233$0$0$9,058,176
82$29,360,413$0$0$9,942,757
83$32,218,326$0$0$10,916,326
84$35,363,435$0$0$11,987,920
85$38,824,899$0$0$13,167,498
86$42,634,846$0$0$14,466,032
87$46,828,676$0$0$15,895,613
88$51,445,396$0$0$17,469,564
89$56,527,988$0$0$19,202,565
90$62,123,813$0$0$21,110,792
91$68,285,055$0$0$23,212,069
92$75,069,219$0$0$25,526,038
93$82,539,670$0$0$28,074,342
94$90,766,228$0$0$30,880,828
95$99,825,831$0$0$33,971,778
96$109,803,260$0$0$37,376,150
97$120,791,935$0$0$41,125,853
98$132,894,801$0$0$45,256,053
99$146,225,295$0$0$49,805,497
100$160,908,418$0$0$54,816,884