Can I retire at age 40 with 925,000?

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 $925,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.6%
1 years$76,386$75,705$75,041$74,393$73,761$72,659
2 years$37,815$37,110$36,428$35,766$35,124$34,016
3 years$24,959$24,252$23,571$22,916$22,284$21,205
4 years$18,533$17,828$17,154$16,509$15,893$14,851
5 years$14,678$13,977$13,312$12,681$12,082$11,080
6 years$12,109$11,413$10,758$10,141$9,560$8,599
7 years$10,275$9,585$8,940$8,337$7,775$6,855
8 years$8,900$8,216$7,582$6,994$6,450$5,572
9 years$7,831$7,154$6,530$5,957$5,432$4,595
10 years$6,976$6,306$5,693$5,135$4,628$3,831
11 years$6,277$5,613$5,012$4,469$3,980$3,223
12 years$5,695$5,038$4,448$3,920$3,449$2,731
13 years$5,203$4,553$3,974$3,461$3,008$2,327
14 years$4,782$4,139$3,571$3,072$2,637$1,992
15 years$4,417$3,781$3,224$2,740$2,322$1,712
16 years$4,098$3,469$2,923$2,453$2,052$1,477
17 years$3,817$3,195$2,660$2,204$1,819$1,277
18 years$3,567$2,952$2,428$1,986$1,618$1,107
19 years$3,344$2,736$2,223$1,795$1,442$962
20 years$3,144$2,542$2,040$1,626$1,288$837
21 years$2,963$2,368$1,876$1,475$1,152$729
22 years$2,798$2,211$1,729$1,341$1,033$636
23 years$2,648$2,067$1,597$1,222$927$556
24 years$2,511$1,937$1,477$1,114$833$486
25 years$2,385$1,818$1,368$1,018$750$425
26 years$2,269$1,708$1,269$930$676$372
27 years$2,161$1,608$1,178$852$609$326
28 years$2,062$1,515$1,095$780$550$286
29 years$1,969$1,429$1,019$716$496$251
30 years$1,883$1,350$949$657$448$220
31 years$1,802$1,276$885$603$405$193
32 years$1,727$1,207$826$554$367$170
33 years$1,657$1,143$771$510$332$149
34 years$1,590$1,084$720$469$300$131
35 years$1,528$1,028$673$432$272$115
36 years$1,469$976$630$398$247$101
37 years$1,414$927$590$366$223$89
38 years$1,361$881$552$338$203$78
39 years$1,312$837$517$311$184$69
40 years$1,265$797$485$287$167$61
41 years$1,220$758$455$265$151$53
42 years$1,178$722$426$245$137$47
43 years$1,137$688$400$226$125$41
44 years$1,099$656$376$208$113$36
45 years$1,062$626$353$192$103$32
46 years$1,028$597$331$178$93$28
47 years$994$569$311$164$85$25
48 years$963$544$292$152$77$22
49 years$932$519$275$140$70$19
50 years$903$496$258$130$63$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $925,000, adding $3,039 every year, while hoping to spend $47,406 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: 38/32/30 Blend
39$925,000$925,000$925,000$925,000
40$1,022,485$973,460$959,122$1,052,120
41$1,076,339$970,720$940,813$1,071,531
42$1,134,097$966,256$920,302$1,087,962
43$1,196,107$959,936$897,465$1,104,833
44$1,262,752$951,615$872,172$1,122,215
45$1,334,451$941,142$844,288$1,140,191
46$1,411,665$928,358$813,671$1,158,857
47$1,494,899$913,091$780,174$1,178,321
48$1,584,709$895,163$743,640$1,198,708
49$1,681,706$874,383$703,908$1,220,160
50$1,786,560$850,548$660,809$1,242,836
51$1,900,009$823,444$614,166$1,266,919
52$2,022,863$792,846$563,794$1,292,616
53$2,156,013$758,514$509,499$1,320,160
54$2,300,440$720,194$451,080$1,349,812
55$2,457,220$677,619$388,327$1,381,871
56$2,627,538$630,505$321,018$1,416,667
57$2,812,700$578,552$248,925$1,454,576
58$3,014,138$521,444$171,807$1,496,018
59$3,233,431$458,845$89,413$1,541,464
60$3,472,315$390,403$1,483$1,591,441
61$3,732,701$315,743$0$1,646,538
62$4,016,692$234,470$0$1,736,980
63$4,326,603$146,167$0$1,836,369
64$4,664,982$50,394$0$1,945,147
65$5,034,632$0$0$2,064,333
66$5,438,642$0$0$2,213,827
67$5,880,411$0$0$2,396,817
68$6,363,682$0$0$2,597,123
69$6,892,576$0$0$2,816,469
70$7,471,631$0$0$3,056,754
71$8,105,844$0$0$3,320,066
72$8,800,718$0$0$3,608,710
73$9,562,313$0$0$3,925,221
74$10,397,305$0$0$4,272,390
75$11,313,045$0$0$4,653,295
76$12,317,629$0$0$5,071,324
77$13,419,976$0$0$5,530,209
78$14,629,910$0$0$6,034,060
79$15,958,252$0$0$6,587,407
80$17,416,922$0$0$7,195,239
81$19,019,050$0$0$7,863,050
82$20,779,102$0$0$8,596,897
83$22,713,012$0$0$9,403,447
84$24,838,336$0$0$10,290,051
85$27,174,414$0$0$11,264,802
86$29,742,553$0$0$12,336,621
87$32,566,227$0$0$13,515,334
88$35,671,299$0$0$14,811,768
89$39,086,263$0$0$16,237,851
90$42,842,512$0$0$17,806,726
91$46,974,636$0$0$19,532,873
92$51,520,747$0$0$21,432,248
93$56,522,833$0$0$23,522,430
94$62,027,161$0$0$25,822,790
95$68,084,710$0$0$28,354,671
96$74,751,648$0$0$31,141,588
97$82,089,866$0$0$34,209,456
98$90,167,559$0$0$37,586,826
99$99,059,870$0$0$41,305,160
100$108,849,595$0$0$45,399,126