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%12.6%
1 years$74,817$74,150$73,500$72,865$72,246$71,462
2 years$37,038$36,348$35,680$35,031$34,403$33,613
3 years$24,447$23,754$23,087$22,445$21,826$21,056
4 years$18,152$17,462$16,801$16,170$15,567$14,821
5 years$14,377$13,690$13,039$12,420$11,834$11,115
6 years$11,860$11,179$10,537$9,933$9,364$8,673
7 years$10,064$9,388$8,756$8,166$7,615$6,953
8 years$8,717$8,047$7,426$6,850$6,317$5,684
9 years$7,670$7,007$6,396$5,835$5,320$4,715
10 years$6,833$6,176$5,576$5,030$4,533$3,956
11 years$6,148$5,498$4,909$4,377$3,899$3,348
12 years$5,578$4,935$4,357$3,840$3,378$2,855
13 years$5,096$4,460$3,893$3,390$2,946$2,449
14 years$4,684$4,054$3,497$3,009$2,583$2,110
15 years$4,326$3,703$3,158$2,684$2,274$1,826
16 years$4,014$3,398$2,863$2,403$2,010$1,586
17 years$3,739$3,129$2,605$2,159$1,782$1,381
18 years$3,494$2,891$2,378$1,946$1,584$1,206
19 years$3,276$2,680$2,177$1,758$1,412$1,055
20 years$3,079$2,490$1,998$1,592$1,261$925
21 years$2,902$2,319$1,838$1,445$1,129$812
22 years$2,741$2,165$1,694$1,314$1,012$714
23 years$2,594$2,025$1,564$1,197$908$629
24 years$2,459$1,897$1,446$1,091$816$554
25 years$2,336$1,780$1,340$997$735$489
26 years$2,222$1,673$1,242$911$662$431
27 years$2,117$1,575$1,154$834$597$381
28 years$2,019$1,484$1,073$764$538$337
29 years$1,929$1,400$998$701$486$298
30 years$1,844$1,322$930$643$439$264
31 years$1,765$1,250$867$591$397$233
32 years$1,692$1,183$809$543$359$207
33 years$1,623$1,120$755$499$325$183
34 years$1,558$1,061$705$459$294$162
35 years$1,496$1,007$660$423$267$144
36 years$1,439$956$617$389$242$127
37 years$1,385$908$578$359$219$113
38 years$1,333$863$541$331$198$100
39 years$1,285$820$507$305$180$89
40 years$1,239$780$475$281$163$79
41 years$1,195$743$445$260$148$70
42 years$1,153$707$418$239$134$62
43 years$1,114$674$392$221$122$55
44 years$1,076$642$368$204$111$49
45 years$1,041$613$345$189$100$43
46 years$1,007$584$324$174$91$39
47 years$974$558$305$161$83$34
48 years$943$532$286$149$75$30
49 years$913$508$269$137$68$27
50 years$885$486$253$127$62$24

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $906,000, adding $6,656 every year, while hoping to spend $21,881 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: 55/21/24 Blend
39$906,000$906,000$906,000$906,000
40$1,005,278$957,260$943,217$1,053,618
41$1,084,535$980,884$951,533$1,111,167
42$1,171,143$1,004,933$959,395$1,170,962
43$1,265,828$1,029,404$966,764$1,235,626
44$1,369,391$1,054,293$973,599$1,305,632
45$1,482,713$1,079,597$979,858$1,381,503
46$1,606,764$1,105,311$985,497$1,463,815
47$1,742,611$1,131,429$990,469$1,553,202
48$1,891,431$1,157,942$994,723$1,650,363
49$2,054,519$1,184,844$998,209$1,756,070
50$2,233,303$1,212,125$1,000,872$1,871,171
51$2,429,354$1,239,772$1,002,654$1,996,602
52$2,644,401$1,267,774$1,003,497$2,133,394
53$2,880,352$1,296,117$1,003,336$2,282,684
54$3,139,305$1,324,784$1,002,105$2,445,725
55$3,423,575$1,353,759$999,736$2,623,898
56$3,735,707$1,383,021$996,155$2,818,724
57$4,078,510$1,412,550$991,287$3,031,880
58$4,455,074$1,442,321$985,051$3,265,217
59$4,868,805$1,472,308$977,363$3,520,771
60$5,323,455$1,502,483$968,137$3,800,788
61$5,823,157$1,532,814$957,279$4,107,744
62$6,372,465$1,563,268$944,694$4,444,369
63$6,976,396$1,593,808$930,281$4,813,668
64$7,640,477$1,624,393$913,934$5,218,959
65$8,370,797$1,654,980$895,543$5,663,894
66$9,174,067$1,685,522$874,991$6,152,501
67$10,057,677$1,715,969$852,160$6,689,220
68$11,029,774$1,746,264$826,920$7,278,943
69$12,099,330$1,776,350$799,141$7,927,064
70$13,276,233$1,806,163$768,684$8,639,528
71$14,571,377$1,835,633$735,403$9,422,886
72$15,996,767$1,864,689$699,148$10,284,361
73$17,565,628$1,893,250$659,761$11,231,913
74$19,292,535$1,921,231$617,076$12,274,315
75$21,193,545$1,948,544$570,919$13,421,237
76$23,286,353$1,975,089$521,112$14,683,338
77$25,590,457$2,000,764$467,465$16,072,366
78$28,127,339$2,025,457$409,780$17,601,269
79$30,920,673$2,049,049$347,853$19,284,317
80$33,996,543$2,071,415$281,468$21,137,241
81$37,383,695$2,092,418$210,401$23,177,375
82$41,113,800$2,111,915$134,418$25,423,829
83$45,221,760$2,129,751$53,274$27,897,660
84$49,746,034$2,145,764$0$30,622,081
85$54,729,002$2,159,778$0$33,631,205
86$60,217,361$2,171,609$0$36,959,807
87$66,262,573$2,181,058$0$40,625,378
88$72,921,342$2,187,916$0$44,662,238
89$80,256,154$2,191,960$0$49,108,212
90$88,335,868$2,192,952$0$54,004,981
91$97,236,361$2,190,641$0$59,398,478
92$107,041,246$2,184,759$0$65,339,323
93$117,842,663$2,175,022$0$71,883,298
94$129,742,146$2,161,130$0$79,091,875
95$142,851,581$2,142,761$0$87,032,799
96$157,294,265$2,119,579$0$95,780,723
97$173,206,064$2,091,222$0$105,417,917
98$190,736,702$2,057,312$0$116,035,044
99$210,051,170$2,017,444$0$127,732,014
100$231,331,281$1,971,191$0$140,618,931