Can I retire at age 40 with 906,000?

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 $906,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$74,817$74,150$73,500$72,865$72,246$71,670
2 years$37,038$36,348$35,680$35,031$34,403$33,823
3 years$24,447$23,754$23,087$22,445$21,826$21,260
4 years$18,152$17,462$16,801$16,170$15,567$15,018
5 years$14,377$13,690$13,039$12,420$11,834$11,304
6 years$11,860$11,179$10,537$9,933$9,364$8,854
7 years$10,064$9,388$8,756$8,166$7,615$7,126
8 years$8,717$8,047$7,426$6,850$6,317$5,848
9 years$7,670$7,007$6,396$5,835$5,320$4,871
10 years$6,833$6,176$5,576$5,030$4,533$4,104
11 years$6,148$5,498$4,909$4,377$3,899$3,489
12 years$5,578$4,935$4,357$3,840$3,378$2,988
13 years$5,096$4,460$3,893$3,390$2,946$2,574
14 years$4,684$4,054$3,497$3,009$2,583$2,229
15 years$4,326$3,703$3,158$2,684$2,274$1,938
16 years$4,014$3,398$2,863$2,403$2,010$1,691
17 years$3,739$3,129$2,605$2,159$1,782$1,480
18 years$3,494$2,891$2,378$1,946$1,584$1,299
19 years$3,276$2,680$2,177$1,758$1,412$1,142
20 years$3,079$2,490$1,998$1,592$1,261$1,006
21 years$2,902$2,319$1,838$1,445$1,129$888
22 years$2,741$2,165$1,694$1,314$1,012$785
23 years$2,594$2,025$1,564$1,197$908$695
24 years$2,459$1,897$1,446$1,091$816$615
25 years$2,336$1,780$1,340$997$735$546
26 years$2,222$1,673$1,242$911$662$485
27 years$2,117$1,575$1,154$834$597$430
28 years$2,019$1,484$1,073$764$538$383
29 years$1,929$1,400$998$701$486$340
30 years$1,844$1,322$930$643$439$303
31 years$1,765$1,250$867$591$397$270
32 years$1,692$1,183$809$543$359$240
33 years$1,623$1,120$755$499$325$214
34 years$1,558$1,061$705$459$294$191
35 years$1,496$1,007$660$423$267$170
36 years$1,439$956$617$389$242$152
37 years$1,385$908$578$359$219$135
38 years$1,333$863$541$331$198$121
39 years$1,285$820$507$305$180$108
40 years$1,239$780$475$281$163$96
41 years$1,195$743$445$260$148$86
42 years$1,153$707$418$239$134$77
43 years$1,114$674$392$221$122$68
44 years$1,076$642$368$204$111$61
45 years$1,041$613$345$189$100$54
46 years$1,007$584$324$174$91$49
47 years$974$558$305$161$83$43
48 years$943$532$286$149$75$39
49 years$913$508$269$137$68$35
50 years$885$486$253$127$62$31

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $906,000, adding $5,292 every year, while hoping to spend $38,451 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: 60/21/19 Blend
39$906,000$906,000$906,000$906,000
40$1,003,871$955,853$941,810$1,058,838
41$1,065,354$961,778$932,449$1,102,568
42$1,131,820$966,705$921,486$1,145,548
43$1,203,736$970,544$908,826$1,191,562
44$1,281,616$973,200$894,371$1,240,910
45$1,366,026$974,571$878,017$1,293,922
46$1,457,586$974,551$859,656$1,350,966
47$1,556,981$973,025$839,176$1,412,445
48$1,664,962$969,872$816,457$1,478,807
49$1,782,356$964,963$791,376$1,550,546
50$1,910,072$958,163$763,803$1,628,208
51$2,049,112$949,325$733,603$1,712,397
52$2,200,576$938,297$700,633$1,803,778
53$2,365,677$924,916$664,747$1,903,090
54$2,545,749$909,009$625,788$2,011,144
55$2,742,259$890,394$583,596$2,128,841
56$2,956,824$868,878$538,001$2,257,174
57$3,191,222$844,256$488,827$2,397,237
58$3,447,413$816,310$435,888$2,550,244
59$3,727,551$784,811$378,992$2,717,530
60$4,034,011$749,517$317,939$2,900,573
61$4,369,407$710,170$252,517$3,101,004
62$4,736,617$666,499$182,507$3,320,622
63$5,138,811$618,217$107,680$3,561,415
64$5,579,479$565,019$27,796$3,825,578
65$6,062,465$506,584$0$4,115,532
66$6,592,003$442,573$0$4,445,599
67$7,172,756$372,627$0$4,813,853
68$7,809,859$296,368$0$5,217,964
69$8,508,969$213,394$0$5,661,585
70$9,276,317$123,284$0$6,148,741
71$10,118,767$25,590$0$6,683,873
72$11,043,879$0$0$7,271,874
73$12,059,982$0$0$7,936,666
74$13,176,251$0$0$8,673,565
75$14,402,793$0$0$9,483,339
76$15,750,743$0$0$10,373,351
77$17,232,368$0$0$11,351,708
78$18,861,183$0$0$12,427,347
79$20,652,077$0$0$13,610,111
80$22,621,455$0$0$14,910,845
81$24,787,389$0$0$16,341,497
82$27,169,793$0$0$17,915,233
83$29,790,606$0$0$19,646,557
84$32,674,001$0$0$21,551,451
85$35,846,611$0$0$23,647,525
86$39,337,784$0$0$25,954,179
87$43,179,853$0$0$28,492,793
88$47,408,447$0$0$31,286,920
89$52,062,820$0$0$34,362,516
90$57,186,229$0$0$37,748,179
91$62,826,335$0$0$41,475,422
92$69,035,656$0$0$45,578,967
93$75,872,061$0$0$50,097,074
94$83,399,314$0$0$55,071,903
95$91,687,678$0$0$60,549,910
96$100,814,576$0$0$66,582,285
97$110,865,324$0$0$73,225,435
98$121,933,929$0$0$80,541,517
99$134,123,982$0$0$88,599,023
100$147,549,633$0$0$97,473,425