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%17.9%
1 years$74,817$74,150$73,500$72,865$72,246$69,933
2 years$37,038$36,348$35,680$35,031$34,403$32,094
3 years$24,447$23,754$23,087$22,445$21,826$19,594
4 years$18,152$17,462$16,801$16,170$15,567$13,428
5 years$14,377$13,690$13,039$12,420$11,834$9,794
6 years$11,860$11,179$10,537$9,933$9,364$7,425
7 years$10,064$9,388$8,756$8,166$7,615$5,778
8 years$8,717$8,047$7,426$6,850$6,317$4,580
9 years$7,670$7,007$6,396$5,835$5,320$3,680
10 years$6,833$6,176$5,576$5,030$4,533$2,988
11 years$6,148$5,498$4,909$4,377$3,899$2,446
12 years$5,578$4,935$4,357$3,840$3,378$2,015
13 years$5,096$4,460$3,893$3,390$2,946$1,668
14 years$4,684$4,054$3,497$3,009$2,583$1,387
15 years$4,326$3,703$3,158$2,684$2,274$1,157
16 years$4,014$3,398$2,863$2,403$2,010$967
17 years$3,739$3,129$2,605$2,159$1,782$811
18 years$3,494$2,891$2,378$1,946$1,584$681
19 years$3,276$2,680$2,177$1,758$1,412$573
20 years$3,079$2,490$1,998$1,592$1,261$483
21 years$2,902$2,319$1,838$1,445$1,129$407
22 years$2,741$2,165$1,694$1,314$1,012$344
23 years$2,594$2,025$1,564$1,197$908$290
24 years$2,459$1,897$1,446$1,091$816$245
25 years$2,336$1,780$1,340$997$735$207
26 years$2,222$1,673$1,242$911$662$175
27 years$2,117$1,575$1,154$834$597$149
28 years$2,019$1,484$1,073$764$538$126
29 years$1,929$1,400$998$701$486$106
30 years$1,844$1,322$930$643$439$90
31 years$1,765$1,250$867$591$397$76
32 years$1,692$1,183$809$543$359$65
33 years$1,623$1,120$755$499$325$55
34 years$1,558$1,061$705$459$294$47
35 years$1,496$1,007$660$423$267$39
36 years$1,439$956$617$389$242$33
37 years$1,385$908$578$359$219$28
38 years$1,333$863$541$331$198$24
39 years$1,285$820$507$305$180$20
40 years$1,239$780$475$281$163$17
41 years$1,195$743$445$260$148$15
42 years$1,153$707$418$239$134$12
43 years$1,114$674$392$221$122$11
44 years$1,076$642$368$204$111$9
45 years$1,041$613$345$189$100$8
46 years$1,007$584$324$174$91$6
47 years$974$558$305$161$83$5
48 years$943$532$286$149$75$5
49 years$913$508$269$137$68$4
50 years$885$486$253$127$62$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $906,000, adding $2,534 every year, while hoping to spend $20,155 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: 65/26/9 Blend
39$906,000$906,000$906,000$906,000
40$1,001,026$953,008$938,965$1,064,081
41$1,081,686$978,260$948,975$1,131,651
42$1,169,897$1,004,075$958,646$1,202,832
43$1,266,410$1,030,458$967,943$1,280,082
44$1,372,048$1,057,414$976,834$1,363,988
45$1,487,720$1,084,950$985,280$1,455,201
46$1,614,425$1,113,071$993,245$1,554,433
47$1,753,266$1,141,781$1,000,688$1,662,472
48$1,905,454$1,171,084$1,007,567$1,780,183
49$2,072,327$1,200,983$1,013,837$1,908,521
50$2,255,355$1,231,482$1,019,451$2,048,535
51$2,456,159$1,262,582$1,024,360$2,201,383
52$2,676,523$1,294,285$1,028,513$2,368,339
53$2,918,415$1,326,591$1,031,854$2,550,806
54$3,183,999$1,359,500$1,034,327$2,750,330
55$3,475,663$1,393,011$1,035,873$2,968,615
56$3,796,033$1,427,121$1,036,427$3,207,536
57$4,148,005$1,461,827$1,035,924$3,469,161
58$4,534,768$1,497,123$1,034,294$3,755,766
59$4,959,838$1,533,005$1,031,466$4,069,861
60$5,427,083$1,569,465$1,027,362$4,414,208
61$5,940,770$1,606,493$1,021,904$4,791,853
62$6,505,597$1,644,079$1,015,006$5,206,151
63$7,126,741$1,682,212$1,006,581$5,660,800
64$7,809,905$1,720,877$996,538$6,159,871
65$8,561,373$1,760,058$984,780$6,707,853
66$9,388,069$1,799,736$971,206$7,309,691
67$10,297,621$1,839,892$955,710$7,970,835
68$11,298,434$1,880,503$938,183$8,697,287
69$12,399,770$1,921,543$918,507$9,495,665
70$13,611,832$1,962,985$896,563$10,373,259
71$14,945,864$2,004,796$872,223$11,338,102
72$16,414,255$2,046,943$845,355$12,399,047
73$18,030,654$2,089,389$815,820$13,565,848
74$19,810,104$2,132,092$783,473$14,849,256
75$21,769,178$2,175,008$748,162$16,261,115
76$23,926,139$2,218,088$709,730$17,814,480
77$26,301,109$2,261,278$668,010$19,523,735
78$28,916,263$2,304,522$622,830$21,404,731
79$31,796,035$2,347,756$574,007$23,474,936
80$34,967,348$2,390,914$521,354$25,753,602
81$38,459,871$2,433,923$464,673$28,261,940
82$42,306,296$2,476,703$403,758$31,023,327
83$46,542,647$2,519,170$338,392$34,063,526
84$51,208,621$2,561,233$268,352$37,410,924
85$56,347,961$2,602,794$193,402$41,096,807
86$62,008,869$2,643,747$113,297$45,155,651
87$68,244,462$2,683,979$27,782$49,625,449
88$75,113,273$2,723,369$0$54,548,070
89$82,679,800$2,761,788$0$59,975,749
90$91,015,120$2,799,096$0$65,956,482
91$100,197,555$2,835,144$0$72,543,658
92$110,313,413$2,869,774$0$79,799,057
93$121,457,804$2,902,816$0$87,790,760
94$133,735,534$2,934,087$0$96,593,789
95$147,262,096$2,963,396$0$106,290,822
96$162,164,763$2,990,535$0$116,972,964
97$178,583,783$3,015,285$0$128,740,618
98$196,673,706$3,037,412$0$141,704,422
99$216,604,844$3,056,665$0$155,986,305
100$238,564,877$3,072,780$0$171,720,627