Can I retire at age 40 with 905,000?

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 $905,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$74,734$74,068$73,419$72,785$72,166$69,996
2 years$36,997$36,308$35,640$34,993$34,365$32,197
3 years$24,420$23,728$23,062$22,420$21,802$19,705
4 years$18,132$17,442$16,783$16,152$15,550$13,538
5 years$14,361$13,675$13,024$12,407$11,821$9,900
6 years$11,847$11,167$10,526$9,922$9,353$7,526
7 years$10,053$9,378$8,747$8,157$7,607$5,873
8 years$8,707$8,038$7,418$6,843$6,310$4,669
9 years$7,661$6,999$6,389$5,829$5,314$3,763
10 years$6,825$6,169$5,570$5,024$4,528$3,065
11 years$6,141$5,492$4,904$4,373$3,894$2,517
12 years$5,572$4,929$4,352$3,835$3,375$2,080
13 years$5,091$4,455$3,888$3,386$2,943$1,728
14 years$4,678$4,049$3,494$3,006$2,580$1,442
15 years$4,322$3,699$3,154$2,681$2,271$1,207
16 years$4,009$3,394$2,860$2,400$2,007$1,013
17 years$3,734$3,126$2,602$2,157$1,780$852
18 years$3,490$2,888$2,376$1,944$1,583$719
19 years$3,272$2,677$2,175$1,756$1,411$607
20 years$3,076$2,487$1,996$1,591$1,260$513
21 years$2,899$2,317$1,836$1,443$1,128$434
22 years$2,738$2,163$1,692$1,312$1,011$368
23 years$2,591$2,023$1,562$1,195$907$312
24 years$2,457$1,895$1,445$1,090$815$265
25 years$2,333$1,779$1,338$996$734$225
26 years$2,220$1,672$1,241$910$661$191
27 years$2,114$1,573$1,152$833$596$162
28 years$2,017$1,482$1,071$763$538$138
29 years$1,927$1,398$997$700$486$117
30 years$1,842$1,321$929$643$439$100
31 years$1,763$1,248$866$590$397$85
32 years$1,690$1,181$808$542$359$72
33 years$1,621$1,119$754$499$325$61
34 years$1,556$1,060$705$459$294$52
35 years$1,495$1,006$659$422$266$45
36 years$1,437$955$616$389$241$38
37 years$1,383$907$577$358$219$32
38 years$1,332$862$540$330$198$27
39 years$1,283$819$506$305$180$23
40 years$1,237$779$474$281$163$20
41 years$1,194$742$445$259$148$17
42 years$1,152$707$417$239$134$14
43 years$1,113$673$392$221$122$12
44 years$1,075$642$368$204$111$10
45 years$1,040$612$345$188$100$9
46 years$1,005$584$324$174$91$8
47 years$973$557$305$161$83$6
48 years$942$532$286$149$75$6
49 years$912$508$269$137$68$5
50 years$884$485$253$127$62$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $905,000, adding $6,146 every year, while hoping to spend $41,043 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: 25/47/28 Blend
39$905,000$905,000$905,000$905,000
40$1,003,650$955,685$941,657$1,019,816
41$1,062,352$958,844$929,533$1,036,934
42$1,125,667$960,782$915,628$1,051,389
43$1,194,021$961,396$899,837$1,066,036
44$1,267,884$960,577$882,054$1,080,920
45$1,347,771$958,208$862,166$1,096,093
46$1,434,249$954,166$840,054$1,111,616
47$1,527,942$948,319$815,595$1,127,561
48$1,629,534$940,529$788,659$1,144,010
49$1,739,779$930,648$759,112$1,161,060
50$1,859,507$918,520$726,813$1,178,820
51$1,989,628$903,979$691,613$1,197,419
52$2,131,146$886,850$653,357$1,217,000
53$2,285,164$866,947$611,886$1,237,730
54$2,452,896$844,072$567,029$1,259,797
55$2,635,678$818,018$518,611$1,283,416
56$2,834,980$788,564$466,448$1,308,830
57$3,052,421$755,476$410,346$1,336,314
58$3,289,781$718,508$350,106$1,366,179
59$3,549,021$677,397$285,517$1,398,775
60$3,832,300$631,868$216,361$1,434,498
61$4,141,993$581,629$142,408$1,473,792
62$4,480,718$526,369$63,419$1,517,156
63$4,851,354$465,764$0$1,565,152
64$5,257,073$399,468$0$1,624,645
65$5,701,368$327,115$0$1,710,726
66$6,188,086$248,322$0$1,805,299
67$6,721,462$162,681$0$1,909,330
68$7,306,161$69,763$0$2,023,890
69$7,947,322$0$0$2,150,171
70$8,650,603$0$0$2,305,469
71$9,422,237$0$0$2,515,604
72$10,269,090$0$0$2,746,385
73$11,198,724$0$0$2,999,893
74$12,219,470$0$0$3,278,420
75$13,340,504$0$0$3,584,491
76$14,571,935$0$0$3,920,890
77$15,924,898$0$0$4,290,680
78$17,411,663$0$0$4,697,240
79$19,045,744$0$0$5,144,290
80$20,842,031$0$0$5,635,928
81$22,816,929$0$0$6,176,672
82$24,988,510$0$0$6,771,497
83$27,376,686$0$0$7,425,885
84$30,003,396$0$0$8,145,877
85$32,892,810$0$0$8,938,129
86$36,071,561$0$0$9,809,974
87$39,568,989$0$0$10,769,491
88$43,417,427$0$0$11,825,585
89$47,652,495$0$0$12,988,065
90$52,313,446$0$0$14,267,741
91$57,443,525$0$0$15,676,523
92$63,090,387$0$0$17,227,534
93$69,306,540$0$0$18,935,237
94$76,149,839$0$0$20,815,567
95$83,684,036$0$0$22,886,081
96$91,979,380$0$0$25,166,129
97$101,113,275$0$0$27,677,030
98$111,171,015$0$0$30,442,278
99$122,246,587$0$0$33,487,760
100$134,443,555$0$0$36,842,002