Can I retire at age 40 with 904,000?

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 $904,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.3%
1 years$74,651$73,987$73,338$72,705$72,086$70,230
2 years$36,956$36,268$35,601$34,954$34,327$32,469
3 years$24,393$23,701$23,036$22,395$21,778$19,977
4 years$18,112$17,423$16,764$16,135$15,532$13,801
5 years$14,345$13,660$13,010$12,393$11,808$10,152
6 years$11,834$11,154$10,514$9,911$9,343$7,764
7 years$10,042$9,367$8,737$8,148$7,598$6,096
8 years$8,698$8,030$7,410$6,835$6,304$4,878
9 years$7,653$6,991$6,382$5,822$5,308$3,958
10 years$6,818$6,162$5,564$5,019$4,523$3,246
11 years$6,135$5,486$4,898$4,368$3,890$2,684
12 years$5,566$4,924$4,347$3,831$3,371$2,235
13 years$5,085$4,450$3,884$3,382$2,940$1,870
14 years$4,673$4,045$3,490$3,002$2,577$1,572
15 years$4,317$3,695$3,151$2,678$2,269$1,326
16 years$4,005$3,390$2,857$2,398$2,005$1,122
17 years$3,730$3,122$2,599$2,154$1,778$952
18 years$3,486$2,885$2,373$1,941$1,581$809
19 years$3,268$2,674$2,172$1,754$1,409$689
20 years$3,072$2,485$1,994$1,589$1,259$587
21 years$2,895$2,314$1,834$1,442$1,126$501
22 years$2,735$2,160$1,690$1,311$1,010$428
23 years$2,588$2,021$1,561$1,194$906$366
24 years$2,454$1,893$1,443$1,089$815$314
25 years$2,331$1,777$1,337$995$733$269
26 years$2,217$1,670$1,240$909$660$230
27 years$2,112$1,571$1,151$832$595$197
28 years$2,015$1,481$1,070$763$537$169
29 years$1,924$1,397$996$699$485$145
30 years$1,840$1,319$928$642$438$125
31 years$1,762$1,247$865$589$396$107
32 years$1,688$1,180$807$542$358$92
33 years$1,619$1,117$753$498$324$79
34 years$1,554$1,059$704$458$294$68
35 years$1,493$1,005$658$422$266$58
36 years$1,436$953$616$389$241$50
37 years$1,382$906$576$358$218$43
38 years$1,330$861$540$330$198$37
39 years$1,282$818$506$304$180$32
40 years$1,236$779$474$281$163$27
41 years$1,192$741$444$259$148$23
42 years$1,151$706$417$239$134$20
43 years$1,112$673$391$221$122$17
44 years$1,074$641$367$204$110$15
45 years$1,038$611$345$188$100$13
46 years$1,004$583$324$174$91$11
47 years$972$557$304$161$83$9
48 years$941$531$286$148$75$8
49 years$911$507$269$137$68$7
50 years$883$485$253$127$62$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $904,000, adding $2,099 every year, while hoping to spend $37,712 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: 24/47/29 Blend
39$904,000$904,000$904,000$904,000
40$998,373$950,461$936,449$1,013,200
41$1,060,082$956,908$927,695$1,032,495
42$1,126,821$962,408$917,383$1,049,840
43$1,199,064$966,873$905,423$1,067,638
44$1,277,330$970,212$891,717$1,085,953
45$1,362,193$972,327$876,164$1,104,858
46$1,454,281$973,115$858,660$1,124,438
47$1,554,286$972,466$839,093$1,144,787
48$1,662,969$970,263$817,348$1,166,015
49$1,781,167$966,381$793,305$1,188,246
50$1,909,801$960,689$766,836$1,211,620
51$2,049,885$953,047$737,809$1,236,298
52$2,202,535$943,307$706,087$1,262,460
53$2,368,976$931,312$671,524$1,290,309
54$2,550,561$916,896$633,969$1,320,076
55$2,748,776$899,882$593,265$1,352,020
56$2,965,258$880,082$549,246$1,386,432
57$3,201,808$857,300$501,740$1,423,639
58$3,460,410$831,326$450,566$1,464,009
59$3,743,249$801,937$395,536$1,507,954
60$4,052,727$768,900$336,454$1,555,935
61$4,391,495$731,965$273,114$1,608,469
62$4,762,466$690,870$205,302$1,666,133
63$5,168,852$645,337$132,795$1,729,572
64$5,614,189$595,072$55,357$1,799,506
65$6,102,370$539,765$0$1,876,741
66$6,637,686$479,088$0$1,970,613
67$7,224,859$412,692$0$2,092,508
68$7,869,093$340,212$0$2,226,474
69$8,576,119$261,261$0$2,373,834
70$9,352,250$175,429$0$2,536,057
71$10,204,438$82,284$0$2,714,767
72$11,140,345$0$0$2,911,765
73$12,168,409$0$0$3,138,680
74$13,297,926$0$0$3,434,906
75$14,539,135$0$0$3,760,594
76$15,903,320$0$0$4,118,725
77$17,402,910$0$0$4,512,584
78$19,051,597$0$0$4,945,790
79$20,864,469$0$0$5,422,329
80$22,858,146$0$0$5,946,596
81$25,050,941$0$0$6,523,430
82$27,463,032$0$0$7,158,166
83$30,116,648$0$0$7,856,678
84$33,036,282$0$0$8,625,443
85$36,248,924$0$0$9,471,595
86$39,784,307$0$0$10,402,994
87$43,675,196$0$0$11,428,303
88$47,957,692$0$0$12,557,066
89$52,671,573$0$0$13,799,799
90$57,860,669$0$0$15,168,092
91$63,573,275$0$0$16,674,713
92$69,862,608$0$0$18,333,732
93$76,787,306$0$0$20,160,655
94$84,411,982$0$0$22,172,566
95$92,807,836$0$0$24,388,291
96$102,053,319$0$0$26,828,574
97$112,234,884$0$0$29,516,276
98$123,447,790$0$0$32,476,586
99$135,797,008$0$0$35,737,261
100$149,398,209$0$0$39,328,889