Can I retire at age 40 with 950,000?

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 $950,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$78,450$77,751$77,070$76,404$75,754$74,561
2 years$38,837$38,113$37,412$36,733$36,073$34,874
3 years$25,634$24,908$24,208$23,535$22,887$21,719
4 years$19,034$18,310$17,617$16,956$16,323$15,195
5 years$15,075$14,355$13,672$13,024$12,408$11,325
6 years$12,436$11,722$11,049$10,415$9,818$8,780
7 years$10,552$9,844$9,182$8,563$7,985$6,991
8 years$9,140$8,438$7,787$7,183$6,624$5,676
9 years$8,042$7,347$6,707$6,118$5,579$4,675
10 years$7,165$6,476$5,847$5,274$4,753$3,894
11 years$6,447$5,765$5,148$4,590$4,088$3,271
12 years$5,849$5,175$4,568$4,026$3,543$2,768
13 years$5,344$4,676$4,082$3,554$3,089$2,355
14 years$4,911$4,251$3,667$3,155$2,708$2,014
15 years$4,536$3,883$3,311$2,814$2,384$1,729
16 years$4,209$3,563$3,002$2,520$2,107$1,489
17 years$3,920$3,281$2,732$2,264$1,868$1,286
18 years$3,664$3,032$2,494$2,040$1,661$1,113
19 years$3,435$2,810$2,283$1,843$1,481$965
20 years$3,229$2,611$2,095$1,670$1,323$839
21 years$3,043$2,432$1,927$1,515$1,184$730
22 years$2,874$2,270$1,776$1,378$1,061$636
23 years$2,720$2,123$1,640$1,255$952$555
24 years$2,579$1,989$1,517$1,144$856$484
25 years$2,449$1,867$1,405$1,045$770$423
26 years$2,330$1,755$1,303$956$694$370
27 years$2,220$1,651$1,210$875$626$324
28 years$2,117$1,556$1,125$801$564$283
29 years$2,022$1,468$1,047$735$510$248
30 years$1,934$1,386$975$674$461$217
31 years$1,851$1,311$909$619$416$191
32 years$1,774$1,240$848$569$377$167
33 years$1,701$1,174$792$523$341$146
34 years$1,633$1,113$740$482$309$129
35 years$1,569$1,056$692$443$280$113
36 years$1,509$1,002$647$408$253$99
37 years$1,452$952$606$376$230$87
38 years$1,398$904$567$347$208$76
39 years$1,347$860$531$320$189$67
40 years$1,299$818$498$295$171$59
41 years$1,253$779$467$272$155$52
42 years$1,209$742$438$251$141$45
43 years$1,168$707$411$232$128$40
44 years$1,129$674$386$214$116$35
45 years$1,091$642$362$198$105$31
46 years$1,055$613$340$183$96$27
47 years$1,021$585$320$169$87$24
48 years$989$558$300$156$79$21
49 years$957$533$282$144$72$18
50 years$928$509$265$133$65$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $950,000, adding $4,466 every year, while hoping to spend $56,045 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: 51/21/28 Blend
39$950,000$950,000$950,000$950,000
40$1,051,507$1,001,157$986,432$1,096,636
41$1,099,129$990,582$959,846$1,117,983
42$1,149,730$977,611$930,491$1,135,204
43$1,203,555$962,066$898,215$1,152,830
44$1,260,872$943,761$862,859$1,170,922
45$1,321,973$922,498$824,257$1,189,556
46$1,387,181$898,067$782,236$1,208,814
47$1,456,846$870,244$736,613$1,228,793
48$1,531,354$838,796$687,200$1,249,603
49$1,611,128$803,473$633,797$1,271,370
50$1,696,632$764,012$576,198$1,294,237
51$1,788,374$720,134$514,186$1,318,365
52$1,886,912$671,545$447,535$1,343,938
53$1,992,859$617,933$376,010$1,371,163
54$2,106,887$558,968$299,363$1,400,276
55$2,229,736$494,303$217,337$1,431,539
56$2,362,214$423,570$129,664$1,465,249
57$2,505,215$346,380$36,063$1,501,743
58$2,659,717$262,322$0$1,541,393
59$2,826,795$170,963$0$1,603,691
60$3,007,632$71,845$0$1,682,775
61$3,203,529$0$0$1,768,486
62$3,415,915$0$0$1,869,719
63$3,646,361$0$0$1,997,656
64$3,896,596$0$0$2,136,665
65$4,168,522$0$0$2,287,814
66$4,464,230$0$0$2,452,276
67$4,786,022$0$0$2,631,343
68$5,136,429$0$0$2,826,437
69$5,518,238$0$0$3,039,120
70$5,934,516$0$0$3,271,116
71$6,388,636$0$0$3,524,319
72$6,884,314$0$0$3,800,813
73$7,425,638$0$0$4,102,897
74$8,017,110$0$0$4,433,096
75$8,663,684$0$0$4,794,195
76$9,370,818$0$0$5,189,256
77$10,144,517$0$0$5,621,655
78$10,991,397$0$0$6,095,105
79$11,918,740$0$0$6,613,699
80$12,934,569$0$0$7,181,942
81$14,047,716$0$0$7,804,795
82$15,267,909$0$0$8,487,723
83$16,605,863$0$0$9,236,746
84$18,073,378$0$0$10,058,492
85$19,683,451$0$0$10,960,264
86$21,450,400$0$0$11,950,104
87$23,389,993$0$0$13,036,872
88$25,519,601$0$0$14,230,329
89$27,858,361$0$0$15,541,224
90$30,427,350$0$0$16,981,402
91$33,249,791$0$0$18,563,910
92$36,351,264$0$0$20,303,121
93$39,759,952$0$0$22,214,871
94$43,506,903$0$0$24,316,605
95$47,626,324$0$0$26,627,545
96$52,155,900$0$0$29,168,866
97$57,137,151$0$0$31,963,899
98$62,615,822$0$0$35,038,350
99$68,642,314$0$0$38,420,539
100$75,272,158$0$0$42,141,673