Can I retire at age 40 with 947,000?

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 $947,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.4%
1 years$78,202$77,506$76,826$76,163$75,515$75,071
2 years$38,714$37,993$37,294$36,617$35,960$35,511
3 years$25,553$24,829$24,132$23,461$22,814$22,376
4 years$18,974$18,252$17,562$16,902$16,271$15,846
5 years$15,027$14,310$13,629$12,982$12,369$11,959
6 years$12,397$11,685$11,014$10,382$9,787$9,392
7 years$10,519$9,813$9,153$8,536$7,960$7,580
8 years$9,111$8,412$7,762$7,160$6,603$6,238
9 years$8,017$7,324$6,686$6,099$5,561$5,211
10 years$7,142$6,456$5,829$5,257$4,738$4,404
11 years$6,427$5,747$5,131$4,576$4,075$3,755
12 years$5,831$5,158$4,554$4,013$3,531$3,226
13 years$5,327$4,661$4,069$3,543$3,079$2,788
14 years$4,896$4,237$3,656$3,145$2,699$2,422
15 years$4,522$3,871$3,301$2,805$2,377$2,113
16 years$4,196$3,551$2,993$2,512$2,101$1,850
17 years$3,908$3,271$2,723$2,257$1,863$1,625
18 years$3,652$3,022$2,486$2,034$1,656$1,431
19 years$3,424$2,801$2,276$1,838$1,476$1,263
20 years$3,219$2,603$2,088$1,664$1,318$1,117
21 years$3,033$2,424$1,921$1,510$1,180$989
22 years$2,865$2,263$1,771$1,373$1,058$878
23 years$2,711$2,117$1,635$1,251$949$780
24 years$2,571$1,983$1,512$1,141$853$693
25 years$2,442$1,861$1,400$1,042$768$617
26 years$2,323$1,749$1,299$953$692$550
27 years$2,213$1,646$1,206$872$624$491
28 years$2,111$1,551$1,121$799$563$438
29 years$2,016$1,463$1,043$733$508$391
30 years$1,928$1,382$972$672$459$349
31 years$1,845$1,306$906$617$415$312
32 years$1,768$1,236$845$567$375$279
33 years$1,696$1,171$789$522$340$250
34 years$1,628$1,109$737$480$308$224
35 years$1,564$1,052$689$442$279$200
36 years$1,504$999$645$407$252$179
37 years$1,447$949$604$375$229$161
38 years$1,394$902$565$346$207$144
39 years$1,343$857$530$319$188$129
40 years$1,295$816$496$294$171$116
41 years$1,249$776$465$271$155$104
42 years$1,206$739$437$250$140$93
43 years$1,164$705$410$231$127$83
44 years$1,125$672$385$213$116$75
45 years$1,088$640$361$197$105$67
46 years$1,052$611$339$182$95$60
47 years$1,018$583$319$168$87$54
48 years$985$557$299$155$79$48
49 years$954$531$281$144$71$43
50 years$925$508$265$133$65$39

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $947,000, adding $4,375 every year, while hoping to spend $47,524 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: 71/11/18 Blend
39$947,000$947,000$947,000$947,000
40$1,048,107$997,916$983,237$1,117,743
41$1,104,449$996,249$965,611$1,162,972
42$1,164,944$992,907$945,801$1,206,367
43$1,229,968$987,758$923,684$1,252,672
44$1,299,929$980,663$899,132$1,302,167
45$1,375,278$971,471$872,009$1,355,162
46$1,456,509$960,026$842,174$1,411,999
47$1,544,166$946,161$809,480$1,473,058
48$1,638,845$929,697$773,772$1,538,755
49$1,741,203$910,448$734,889$1,609,553
50$1,851,960$888,214$692,662$1,685,962
51$1,971,908$862,785$646,915$1,768,544
52$2,101,920$833,938$597,463$1,857,921
53$2,242,951$801,437$544,114$1,954,780
54$2,396,058$765,033$486,667$2,059,880
55$2,562,397$724,461$424,912$2,174,057
56$2,743,244$679,442$358,629$2,298,236
57$2,940,001$629,681$287,589$2,433,438
58$3,154,211$574,865$211,553$2,580,790
59$3,387,572$514,665$130,272$2,741,535
60$3,641,953$448,731$43,484$2,917,047
61$3,919,408$376,696$0$3,108,842
62$4,222,203$298,169$0$3,328,031
63$4,552,827$212,739$0$3,576,548
64$4,914,024$119,971$0$3,848,129
65$5,308,813$19,408$0$4,145,083
66$5,740,517$0$0$4,469,955
67$6,212,796$0$0$4,836,374
68$6,729,680$0$0$5,240,018
69$7,295,607$0$0$5,682,010
70$7,915,462$0$0$6,166,171
71$8,594,627$0$0$6,696,712
72$9,339,029$0$0$7,278,268
73$10,155,193$0$0$7,915,945
74$11,050,309$0$0$8,615,366
75$12,032,295$0$0$9,382,727
76$13,109,871$0$0$10,224,849
77$14,292,643$0$0$11,149,248
78$15,591,194$0$0$12,164,201
79$17,017,178$0$0$13,278,829
80$18,583,438$0$0$14,503,175
81$20,304,116$0$0$15,848,307
82$22,194,797$0$0$17,326,415
83$24,272,647$0$0$18,950,930
84$26,556,577$0$0$20,736,648
85$29,067,424$0$0$22,699,870
86$31,828,143$0$0$24,858,555
87$34,864,025$0$0$27,232,490
88$38,202,933$0$0$29,843,475
89$41,875,566$0$0$32,715,529
90$45,915,751$0$0$35,875,114
91$50,360,754$0$0$39,351,389
92$55,251,637$0$0$43,176,480
93$60,633,644$0$0$47,385,785
94$66,556,626$0$0$52,018,306
95$73,075,510$0$0$57,117,017
96$80,250,818$0$0$62,729,272
97$88,149,239$0$0$68,907,247
98$96,844,253$0$0$75,708,431
99$106,416,827$0$0$83,196,175
100$116,956,180$0$0$91,440,281