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%11.2%
1 years$78,202$77,506$76,826$76,163$75,515$75,134
2 years$38,714$37,993$37,294$36,617$35,960$35,575
3 years$25,553$24,829$24,132$23,461$22,814$22,438
4 years$18,974$18,252$17,562$16,902$16,271$15,906
5 years$15,027$14,310$13,629$12,982$12,369$12,016
6 years$12,397$11,685$11,014$10,382$9,787$9,447
7 years$10,519$9,813$9,153$8,536$7,960$7,633
8 years$9,111$8,412$7,762$7,160$6,603$6,289
9 years$8,017$7,324$6,686$6,099$5,561$5,260
10 years$7,142$6,456$5,829$5,257$4,738$4,450
11 years$6,427$5,747$5,131$4,576$4,075$3,799
12 years$5,831$5,158$4,554$4,013$3,531$3,268
13 years$5,327$4,661$4,069$3,543$3,079$2,828
14 years$4,896$4,237$3,656$3,145$2,699$2,460
15 years$4,522$3,871$3,301$2,805$2,377$2,149
16 years$4,196$3,551$2,993$2,512$2,101$1,884
17 years$3,908$3,271$2,723$2,257$1,863$1,657
18 years$3,652$3,022$2,486$2,034$1,656$1,461
19 years$3,424$2,801$2,276$1,838$1,476$1,291
20 years$3,219$2,603$2,088$1,664$1,318$1,144
21 years$3,033$2,424$1,921$1,510$1,180$1,015
22 years$2,865$2,263$1,771$1,373$1,058$901
23 years$2,711$2,117$1,635$1,251$949$802
24 years$2,571$1,983$1,512$1,141$853$714
25 years$2,442$1,861$1,400$1,042$768$637
26 years$2,323$1,749$1,299$953$692$568
27 years$2,213$1,646$1,206$872$624$508
28 years$2,111$1,551$1,121$799$563$454
29 years$2,016$1,463$1,043$733$508$406
30 years$1,928$1,382$972$672$459$363
31 years$1,845$1,306$906$617$415$325
32 years$1,768$1,236$845$567$375$291
33 years$1,696$1,171$789$522$340$261
34 years$1,628$1,109$737$480$308$234
35 years$1,564$1,052$689$442$279$210
36 years$1,504$999$645$407$252$188
37 years$1,447$949$604$375$229$169
38 years$1,394$902$565$346$207$152
39 years$1,343$857$530$319$188$136
40 years$1,295$816$496$294$171$122
41 years$1,249$776$465$271$155$110
42 years$1,206$739$437$250$140$99
43 years$1,164$705$410$231$127$89
44 years$1,125$672$385$213$116$80
45 years$1,088$640$361$197$105$71
46 years$1,052$611$339$182$95$64
47 years$1,018$583$319$168$87$58
48 years$985$557$299$155$79$52
49 years$954$531$281$144$71$47
50 years$925$508$265$133$65$42

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $947,000, adding $2,991 every year, while hoping to spend $53,907 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: 66/15/19 Blend
39$947,000$947,000$947,000$947,000
40$1,046,679$996,488$981,810$1,110,611
41$1,096,084$987,960$957,344$1,145,296
42$1,148,721$977,206$930,251$1,176,714
43$1,204,864$964,062$900,388$1,209,767
44$1,264,810$948,352$867,601$1,244,613
45$1,328,889$929,889$831,734$1,281,431
46$1,397,458$908,476$792,619$1,320,418
47$1,470,911$883,904$750,085$1,361,794
48$1,549,680$855,951$703,949$1,405,803
49$1,634,239$824,384$654,022$1,452,716
50$1,725,108$788,955$600,108$1,502,832
51$1,822,856$749,402$541,999$1,556,486
52$1,928,111$705,446$479,480$1,614,046
53$2,041,561$656,796$412,325$1,675,925
54$2,163,961$603,140$340,299$1,742,575
55$2,296,143$544,151$263,157$1,814,503
56$2,439,018$479,482$180,641$1,892,265
57$2,593,589$408,768$92,483$1,976,483
58$2,760,958$331,622$0$2,067,842
59$2,942,339$247,634$0$2,167,427
60$3,139,062$156,373$0$2,295,784
61$3,352,595$57,383$0$2,435,138
62$3,584,548$0$0$2,586,587
63$3,836,695$0$0$2,759,562
64$4,110,987$0$0$2,958,086
65$4,409,569$0$0$3,174,245
66$4,734,804$0$0$3,409,758
67$5,089,289$0$0$3,666,512
68$5,475,885$0$0$3,946,588
69$5,897,740$0$0$4,252,273
70$6,358,319$0$0$4,586,087
71$6,861,435$0$0$4,950,803
72$7,411,288$0$0$5,349,472
73$8,012,501$0$0$5,785,458
74$8,670,163$0$0$6,262,460
75$9,389,879$0$0$6,784,552
76$10,177,819$0$0$7,356,223
77$11,040,780$0$0$7,982,413
78$11,986,245$0$0$8,668,564
79$13,022,456$0$0$9,420,669
80$14,158,489$0$0$10,245,327
81$15,404,341$0$0$11,149,809
82$16,771,023$0$0$12,142,121
83$18,270,663$0$0$13,231,082
84$19,916,619$0$0$14,426,406
85$21,723,607$0$0$15,738,796
86$23,707,836$0$0$17,180,037
87$25,887,162$0$0$18,763,115
88$28,281,254$0$0$20,502,334
89$30,911,783$0$0$22,413,453
90$33,802,619$0$0$24,513,833
91$36,980,062$0$0$26,822,599
92$40,473,086$0$0$29,360,823
93$44,313,611$0$0$32,151,718
94$48,536,807$0$0$35,220,861
95$53,181,420$0$0$38,596,432
96$58,290,140$0$0$42,309,476
97$63,910,002$0$0$46,394,202
98$70,092,830$0$0$50,888,298
99$76,895,722$0$0$55,833,292
100$84,381,592$0$0$61,274,938