Can I retire at age 40 with 907,000?

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 $907,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%20%
1 years$74,899$74,232$73,581$72,946$72,325$69,428
2 years$37,079$36,388$35,719$35,070$34,441$31,558
3 years$24,474$23,780$23,113$22,470$21,851$19,074
4 years$18,172$17,481$16,820$16,188$15,584$12,934
5 years$14,393$13,705$13,053$12,434$11,847$9,330
6 years$11,873$11,191$10,549$9,944$9,374$6,992
7 years$10,075$9,398$8,766$8,175$7,624$5,375
8 years$8,726$8,056$7,434$6,858$6,324$4,208
9 years$7,678$7,014$6,403$5,841$5,326$3,338
10 years$6,840$6,183$5,582$5,035$4,538$2,675
11 years$6,155$5,504$4,915$4,382$3,903$2,159
12 years$5,584$4,940$4,362$3,844$3,382$1,754
13 years$5,102$4,465$3,897$3,394$2,949$1,432
14 years$4,689$4,058$3,501$3,012$2,585$1,173
15 years$4,331$3,707$3,161$2,687$2,276$964
16 years$4,018$3,401$2,866$2,406$2,012$794
17 years$3,743$3,132$2,608$2,161$1,784$655
18 years$3,498$2,895$2,381$1,948$1,586$542
19 years$3,279$2,683$2,180$1,760$1,414$449
20 years$3,083$2,493$2,000$1,594$1,263$372
21 years$2,905$2,322$1,840$1,447$1,130$309
22 years$2,744$2,167$1,696$1,315$1,013$256
23 years$2,597$2,027$1,566$1,198$909$213
24 years$2,462$1,899$1,448$1,093$817$177
25 years$2,338$1,782$1,341$998$735$147
26 years$2,224$1,675$1,244$912$662$122
27 years$2,119$1,577$1,155$835$597$102
28 years$2,022$1,486$1,074$765$539$85
29 years$1,931$1,401$999$702$487$71
30 years$1,846$1,324$931$644$440$59
31 years$1,767$1,251$868$591$398$49
32 years$1,694$1,184$810$544$360$41
33 years$1,624$1,121$756$500$325$34
34 years$1,559$1,063$706$460$295$28
35 years$1,498$1,008$660$423$267$24
36 years$1,441$957$618$390$242$20
37 years$1,386$909$578$359$219$16
38 years$1,335$863$541$331$199$14
39 years$1,286$821$507$305$180$11
40 years$1,240$781$475$282$163$9
41 years$1,196$744$446$260$148$8
42 years$1,155$708$418$240$135$7
43 years$1,115$675$392$221$122$5
44 years$1,078$643$368$204$111$5
45 years$1,042$613$346$189$101$4
46 years$1,008$585$325$174$91$3
47 years$975$558$305$161$83$3
48 years$944$533$287$149$75$2
49 years$914$509$270$138$68$2
50 years$886$486$253$127$62$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $907,000, adding $3,902 every year, while hoping to spend $53,094 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: 59/19/22 Blend
39$907,000$907,000$907,000$907,000
40$1,003,539$955,468$941,409$1,056,654
41$1,049,408$945,794$916,455$1,083,527
42$1,098,177$933,867$888,885$1,106,726
43$1,150,084$919,520$858,556$1,130,861
44$1,205,393$902,576$825,318$1,156,033
45$1,264,390$882,850$789,013$1,182,355
46$1,327,390$860,142$749,477$1,209,956
47$1,394,739$834,243$706,539$1,238,980
48$1,466,813$804,932$660,020$1,269,587
49$1,544,028$771,974$609,730$1,301,957
50$1,626,838$735,120$555,476$1,336,293
51$1,715,743$694,108$497,051$1,372,820
52$1,811,289$648,660$434,243$1,411,790
53$1,914,078$598,482$366,828$1,453,484
54$2,024,770$543,264$294,572$1,498,218
55$2,144,089$482,676$217,233$1,546,341
56$2,272,832$416,373$134,556$1,598,245
57$2,411,873$343,987$46,276$1,654,365
58$2,562,173$265,132$0$1,715,186
59$2,724,789$179,398$0$1,792,500
60$2,900,882$86,352$0$1,887,979
61$3,091,729$0$0$1,991,488
62$3,298,733$0$0$2,106,867
63$3,523,439$0$0$2,251,772
64$3,767,543$0$0$2,409,252
65$4,032,915$0$0$2,580,521
66$4,321,609$0$0$2,766,914
67$4,635,886$0$0$2,969,899
68$4,978,234$0$0$3,191,092
69$5,351,390$0$0$3,432,272
70$5,758,367$0$0$3,695,397
71$6,202,482$0$0$3,982,622
72$6,687,384$0$0$4,296,317
73$7,217,092$0$0$4,639,094
74$7,796,029$0$0$5,013,829
75$8,429,067$0$0$5,423,685
76$9,121,566$0$0$5,872,147
77$9,879,431$0$0$6,363,052
78$10,709,163$0$0$6,900,626
79$11,617,922$0$0$7,489,522
80$12,613,592$0$0$8,134,864
81$13,704,856$0$0$8,842,295
82$14,901,276$0$0$9,618,031
83$16,213,384$0$0$10,468,917
84$17,652,780$0$0$11,402,494
85$19,232,243$0$0$12,427,067
86$20,965,845$0$0$13,551,784
87$22,869,090$0$0$14,786,722
88$24,959,055$0$0$16,142,983
89$27,254,552$0$0$17,632,795
90$29,776,305$0$0$19,269,630
91$32,547,142$0$0$21,068,328
92$35,592,215$0$0$23,045,238
93$38,939,231$0$0$25,218,374
94$42,618,717$0$0$27,607,579
95$46,664,301$0$0$30,234,716
96$51,113,038$0$0$33,123,873
97$56,005,748$0$0$36,301,588
98$61,387,409$0$0$39,797,101
99$67,307,575$0$0$43,642,628
100$73,820,845$0$0$47,873,665