Can I retire at age 40 with 906,000?

Use the below retirement simulation to view the chances of a successful retirement.
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%
1 years$74,817$74,150$73,500$72,865$72,246$71,941
2 years$37,038$36,348$35,680$35,031$34,403$34,095
3 years$24,447$23,754$23,087$22,445$21,826$21,526
4 years$18,152$17,462$16,801$16,170$15,567$15,275
5 years$14,377$13,690$13,039$12,420$11,834$11,552
6 years$11,860$11,179$10,537$9,933$9,364$9,092
7 years$10,064$9,388$8,756$8,166$7,615$7,353
8 years$8,717$8,047$7,426$6,850$6,317$6,066
9 years$7,670$7,007$6,396$5,835$5,320$5,079
10 years$6,833$6,176$5,576$5,030$4,533$4,302
11 years$6,148$5,498$4,909$4,377$3,899$3,678
12 years$5,578$4,935$4,357$3,840$3,378$3,167
13 years$5,096$4,460$3,893$3,390$2,946$2,745
14 years$4,684$4,054$3,497$3,009$2,583$2,390
15 years$4,326$3,703$3,158$2,684$2,274$2,091
16 years$4,014$3,398$2,863$2,403$2,010$1,836
17 years$3,739$3,129$2,605$2,159$1,782$1,617
18 years$3,494$2,891$2,378$1,946$1,584$1,428
19 years$3,276$2,680$2,177$1,758$1,412$1,263
20 years$3,079$2,490$1,998$1,592$1,261$1,121
21 years$2,902$2,319$1,838$1,445$1,129$996
22 years$2,741$2,165$1,694$1,314$1,012$886
23 years$2,594$2,025$1,564$1,197$908$789
24 years$2,459$1,897$1,446$1,091$816$704
25 years$2,336$1,780$1,340$997$735$629
26 years$2,222$1,673$1,242$911$662$562
27 years$2,117$1,575$1,154$834$597$503
28 years$2,019$1,484$1,073$764$538$450
29 years$1,929$1,400$998$701$486$403
30 years$1,844$1,322$930$643$439$361
31 years$1,765$1,250$867$591$397$324
32 years$1,692$1,183$809$543$359$291
33 years$1,623$1,120$755$499$325$261
34 years$1,558$1,061$705$459$294$234
35 years$1,496$1,007$660$423$267$211
36 years$1,439$956$617$389$242$189
37 years$1,385$908$578$359$219$170
38 years$1,333$863$541$331$198$153
39 years$1,285$820$507$305$180$137
40 years$1,239$780$475$281$163$124
41 years$1,195$743$445$260$148$111
42 years$1,153$707$418$239$134$100
43 years$1,114$674$392$221$122$90
44 years$1,076$642$368$204$111$81
45 years$1,041$613$345$189$100$73
46 years$1,007$584$324$174$91$66
47 years$974$558$305$161$83$59
48 years$943$532$286$149$75$53
49 years$913$508$269$137$68$48
50 years$885$486$253$127$62$43

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $906,000, adding $5,720 every year, while hoping to spend $25,427 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: 79/8/13 Blend
39$906,000$906,000$906,000$906,000
40$1,004,312$956,294$942,251$1,080,658
41$1,079,698$976,098$946,762$1,151,484
42$1,161,921$996,021$950,573$1,225,325
43$1,251,651$1,016,041$953,631$1,305,612
44$1,349,628$1,036,134$955,886$1,392,978
45$1,456,662$1,056,278$957,281$1,488,121
46$1,573,650$1,076,443$957,757$1,591,810
47$1,701,574$1,096,601$957,255$1,704,891
48$1,841,521$1,116,721$955,709$1,828,298
49$1,994,684$1,136,768$953,053$1,963,057
50$2,162,376$1,156,704$949,215$2,110,302
51$2,346,047$1,176,491$944,122$2,271,279
52$2,547,291$1,196,086$937,697$2,447,361
53$2,767,862$1,215,442$929,858$2,640,064
54$3,009,695$1,234,510$920,519$2,851,055
55$3,274,920$1,253,237$909,592$3,082,171
56$3,565,882$1,271,566$896,984$3,335,438
57$3,885,166$1,289,436$882,596$3,613,087
58$4,235,616$1,306,782$866,327$3,917,576
59$4,620,369$1,323,534$848,069$4,251,615
60$5,042,877$1,339,618$827,709$4,618,189
61$5,506,945$1,354,953$805,132$5,020,587
62$6,016,763$1,369,455$780,213$5,462,434
63$6,576,947$1,383,033$752,826$5,947,725
64$7,192,585$1,395,591$722,834$6,480,861
65$7,869,278$1,407,025$690,099$7,066,692
66$8,613,201$1,417,225$654,473$7,710,565
67$9,431,153$1,426,074$615,803$8,418,369
68$10,330,627$1,433,449$573,930$9,196,596
69$11,319,879$1,439,216$528,684$10,052,399
70$12,408,003$1,443,234$479,892$10,993,661
71$13,605,022$1,445,355$427,370$12,029,069
72$14,921,975$1,445,418$370,929$13,168,196
73$16,371,029$1,443,256$310,367$14,421,593
74$17,965,587$1,438,689$245,478$15,800,887
75$19,720,419$1,431,527$176,043$17,318,889
76$21,651,797$1,421,567$101,836$18,989,720
77$23,777,653$1,408,596$22,620$20,828,940
78$26,117,743$1,392,387$0$22,853,697
79$28,693,838$1,372,699$0$25,091,478
80$31,529,924$1,349,276$0$27,558,427
81$34,652,436$1,321,850$0$30,274,391
82$38,090,496$1,290,132$0$33,264,702
83$41,876,200$1,253,822$0$36,557,274
84$46,044,910$1,212,597$0$40,182,868
85$50,635,595$1,166,118$0$44,175,378
86$55,691,194$1,114,026$0$48,572,158
87$61,259,023$1,055,941$0$53,414,368
88$67,391,221$991,460$0$58,747,365
89$74,145,243$920,159$0$64,621,131
90$81,584,399$841,588$0$71,090,745
91$89,778,453$755,271$0$78,216,904
92$98,804,283$660,707$0$86,066,493
93$108,746,603$557,365$0$94,713,217
94$119,698,765$444,684$0$104,238,299
95$131,763,637$322,072$0$114,731,245
96$145,054,578$188,903$0$126,290,690
97$159,696,502$44,517$0$139,025,326
98$175,827,064$0$0$153,054,933
99$193,597,950$0$0$168,521,347
100$213,176,317$0$0$185,565,215