Can I retire at age 40 with 940,000?

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 $940,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.5%
1 years$77,624$76,933$76,258$75,600$74,957$73,564
2 years$38,428$37,712$37,019$36,346$35,694$34,296
3 years$25,364$24,645$23,953$23,287$22,646$21,286
4 years$18,834$18,117$17,432$16,777$16,151$14,840
5 years$14,916$14,204$13,528$12,886$12,278$11,019
6 years$12,305$11,599$10,933$10,305$9,715$8,510
7 years$10,441$9,740$9,085$8,473$7,901$6,751
8 years$9,044$8,349$7,705$7,108$6,555$5,458
9 years$7,958$7,270$6,636$6,054$5,520$4,477
10 years$7,089$6,408$5,786$5,219$4,703$3,713
11 years$6,379$5,704$5,094$4,542$4,045$3,106
12 years$5,788$5,120$4,520$3,984$3,505$2,616
13 years$5,288$4,627$4,039$3,517$3,057$2,216
14 years$4,859$4,206$3,629$3,122$2,679$1,886
15 years$4,489$3,842$3,276$2,784$2,359$1,611
16 years$4,165$3,525$2,970$2,493$2,085$1,380
17 years$3,879$3,246$2,703$2,240$1,849$1,186
18 years$3,625$3,000$2,467$2,019$1,644$1,022
19 years$3,399$2,780$2,259$1,824$1,465$881
20 years$3,195$2,584$2,073$1,652$1,309$762
21 years$3,011$2,406$1,907$1,499$1,171$659
22 years$2,843$2,246$1,757$1,363$1,050$571
23 years$2,691$2,101$1,623$1,242$942$496
24 years$2,552$1,968$1,501$1,132$847$430
25 years$2,423$1,847$1,390$1,034$762$374
26 years$2,305$1,736$1,289$946$687$325
27 years$2,196$1,634$1,197$865$619$283
28 years$2,095$1,540$1,113$793$559$246
29 years$2,001$1,452$1,036$727$504$214
30 years$1,913$1,372$965$667$456$187
31 years$1,832$1,297$899$613$412$163
32 years$1,755$1,227$839$563$373$142
33 years$1,683$1,162$783$518$337$124
34 years$1,616$1,101$732$477$305$108
35 years$1,553$1,045$684$439$277$94
36 years$1,493$991$640$404$251$82
37 years$1,437$942$599$372$227$72
38 years$1,383$895$561$343$206$63
39 years$1,333$851$526$316$187$55
40 years$1,285$810$493$292$169$48
41 years$1,240$771$462$269$154$42
42 years$1,197$734$433$248$139$36
43 years$1,156$699$407$229$127$32
44 years$1,117$667$382$212$115$28
45 years$1,080$636$358$196$104$24
46 years$1,044$606$337$181$95$21
47 years$1,011$579$316$167$86$18
48 years$978$552$297$154$78$16
49 years$947$528$279$143$71$14
50 years$918$504$263$132$64$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $940,000, adding $4,852 every year, while hoping to spend $52,221 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: 77/11/12 Blend
39$940,000$940,000$940,000$940,000
40$1,040,885$991,065$976,495$1,118,256
41$1,091,492$984,064$953,645$1,162,884
42$1,145,512$974,970$928,279$1,204,680
43$1,203,235$963,626$900,258$1,249,036
44$1,264,985$949,863$869,436$1,296,186
45$1,331,112$933,505$835,661$1,346,390
46$1,402,003$914,364$798,772$1,399,934
47$1,478,080$892,241$758,605$1,457,134
48$1,559,810$866,926$714,983$1,518,339
49$1,647,701$838,196$667,726$1,583,933
50$1,742,314$805,815$616,642$1,654,342
51$1,844,263$769,533$561,533$1,730,033
52$1,954,225$729,087$502,191$1,811,523
53$2,072,941$684,198$438,400$1,899,384
54$2,201,227$634,570$369,932$1,994,245
55$2,339,979$579,890$296,552$2,096,802
56$2,490,182$519,829$218,011$2,207,821
57$2,652,918$454,039$134,052$2,328,150
58$2,829,378$382,150$44,406$2,458,724
59$3,020,873$303,773$0$2,600,573
60$3,228,841$218,496$0$2,761,400
61$3,454,866$125,886$0$2,942,392
62$3,700,692$25,484$0$3,139,282
63$3,968,235$0$0$3,353,641
64$4,259,605$0$0$3,597,271
65$4,577,122$0$0$3,866,156
66$4,923,342$0$0$4,159,380
67$5,301,076$0$0$4,479,327
68$5,713,419$0$0$4,828,622
69$6,163,778$0$0$5,210,157
70$6,655,901$0$0$5,627,112
71$7,193,920$0$0$6,082,990
72$7,782,378$0$0$6,581,649
73$8,426,282$0$0$7,127,333
74$9,131,141$0$0$7,724,720
75$9,903,026$0$0$8,378,957
76$10,748,619$0$0$9,095,716
77$11,675,281$0$0$9,881,240
78$12,691,116$0$0$10,742,408
79$13,805,053$0$0$11,686,793
80$15,026,924$0$0$12,722,737
81$16,367,559$0$0$13,859,431
82$17,838,887$0$0$15,106,996
83$19,454,049$0$0$16,476,579
84$21,227,518$0$0$17,980,464
85$23,175,239$0$0$19,632,177
86$25,314,778$0$0$21,446,624
87$27,665,482$0$0$23,440,220
88$30,248,670$0$0$25,631,054
89$33,087,824$0$0$28,039,051
90$36,208,815$0$0$30,686,162
91$39,640,148$0$0$33,596,574
92$43,413,225$0$0$36,796,931
93$47,562,644$0$0$40,316,590
94$52,126,524$0$0$44,187,894
95$57,146,863$0$0$48,446,481
96$62,669,934$0$0$53,131,613
97$68,746,723$0$0$58,286,552
98$75,433,405$0$0$63,958,963
99$82,791,875$0$0$70,201,367
100$90,890,334$0$0$77,071,631