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%18.3%
1 years$78,450$77,751$77,070$76,404$75,754$73,212
2 years$38,837$38,113$37,412$36,733$36,073$33,537
3 years$25,634$24,908$24,208$23,535$22,887$20,436
4 years$19,034$18,310$17,617$16,956$16,323$13,977
5 years$15,075$14,355$13,672$13,024$12,408$10,173
6 years$12,436$11,722$11,049$10,415$9,818$7,696
7 years$10,552$9,844$9,182$8,563$7,985$5,974
8 years$9,140$8,438$7,787$7,183$6,624$4,724
9 years$8,042$7,347$6,707$6,118$5,579$3,787
10 years$7,165$6,476$5,847$5,274$4,753$3,067
11 years$6,447$5,765$5,148$4,590$4,088$2,504
12 years$5,849$5,175$4,568$4,026$3,543$2,057
13 years$5,344$4,676$4,082$3,554$3,089$1,699
14 years$4,911$4,251$3,667$3,155$2,708$1,408
15 years$4,536$3,883$3,311$2,814$2,384$1,171
16 years$4,209$3,563$3,002$2,520$2,107$977
17 years$3,920$3,281$2,732$2,264$1,868$817
18 years$3,664$3,032$2,494$2,040$1,661$684
19 years$3,435$2,810$2,283$1,843$1,481$573
20 years$3,229$2,611$2,095$1,670$1,323$482
21 years$3,043$2,432$1,927$1,515$1,184$405
22 years$2,874$2,270$1,776$1,378$1,061$341
23 years$2,720$2,123$1,640$1,255$952$287
24 years$2,579$1,989$1,517$1,144$856$242
25 years$2,449$1,867$1,405$1,045$770$204
26 years$2,330$1,755$1,303$956$694$172
27 years$2,220$1,651$1,210$875$626$145
28 years$2,117$1,556$1,125$801$564$122
29 years$2,022$1,468$1,047$735$510$103
30 years$1,934$1,386$975$674$461$87
31 years$1,851$1,311$909$619$416$74
32 years$1,774$1,240$848$569$377$62
33 years$1,701$1,174$792$523$341$53
34 years$1,633$1,113$740$482$309$44
35 years$1,569$1,056$692$443$280$37
36 years$1,509$1,002$647$408$253$32
37 years$1,452$952$606$376$230$27
38 years$1,398$904$567$347$208$23
39 years$1,347$860$531$320$189$19
40 years$1,299$818$498$295$171$16
41 years$1,253$779$467$272$155$14
42 years$1,209$742$438$251$141$12
43 years$1,168$707$411$232$128$10
44 years$1,129$674$386$214$116$8
45 years$1,091$642$362$198$105$7
46 years$1,055$613$340$183$96$6
47 years$1,021$585$320$169$87$5
48 years$989$558$300$156$79$4
49 years$957$533$282$144$72$4
50 years$928$509$265$133$65$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $950,000, adding $3,491 every year, while hoping to spend $55,354 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: 42/48/10 Blend
39$950,000$950,000$950,000$950,000
40$1,050,501$1,000,151$985,426$1,091,403
41$1,098,756$990,262$959,542$1,110,439
42$1,150,077$978,034$930,935$1,125,208
43$1,204,720$963,292$899,456$1,139,957
44$1,262,963$945,854$864,949$1,154,705
45$1,325,110$925,526$827,249$1,169,479
46$1,391,495$902,101$786,186$1,184,312
47$1,462,486$875,362$741,582$1,199,247
48$1,538,483$845,078$693,248$1,214,334
49$1,619,927$811,006$640,990$1,229,633
50$1,707,300$772,886$584,604$1,245,216
51$1,801,132$730,445$523,877$1,261,171
52$1,902,006$683,395$458,585$1,277,597
53$2,010,560$631,430$388,496$1,294,613
54$2,127,494$574,228$313,368$1,312,355
55$2,253,579$511,445$232,946$1,330,982
56$2,389,660$442,723$146,967$1,350,677
57$2,536,668$367,678$55,152$1,371,649
58$2,695,623$285,910$0$1,394,138
59$2,867,649$196,991$0$1,422,989
60$3,053,979$100,474$0$1,460,523
61$3,255,970$0$0$1,501,236
62$3,475,115$0$0$1,547,742
63$3,713,054$0$0$1,655,958
64$3,971,592$0$0$1,773,649
65$4,252,715$0$0$1,901,730
66$4,558,608$0$0$2,041,211
67$4,891,673$0$0$2,193,203
68$5,254,555$0$0$2,358,928
69$5,650,165$0$0$2,539,730
70$6,081,706$0$0$2,737,089
71$6,552,705$0$0$2,952,636
72$7,067,040$0$0$3,188,165
73$7,628,986$0$0$3,445,649
74$8,243,245$0$0$3,727,265
75$8,914,996$0$0$4,035,404
76$9,649,940$0$0$4,372,705
77$10,454,355$0$0$4,742,070
78$11,335,155$0$0$5,146,696
79$12,299,951$0$0$5,590,102
80$13,357,127$0$0$6,076,168
81$14,515,917$0$0$6,609,162
82$15,786,489$0$0$7,193,787
83$17,180,043$0$0$7,835,226
84$18,708,914$0$0$8,539,182
85$20,386,690$0$0$9,311,942
86$22,228,337$0$0$10,160,430
87$24,250,342$0$0$11,092,271
88$26,470,865$0$0$12,115,867
89$28,909,911$0$0$13,240,474
90$31,589,519$0$0$14,476,288
91$34,533,967$0$0$15,834,541
92$37,770,002$0$0$17,327,609
93$41,327,090$0$0$18,969,125
94$45,237,694$0$0$20,774,110
95$49,537,579$0$0$22,759,112
96$54,266,151$0$0$24,942,365
97$59,466,823$0$0$27,343,957
98$65,187,427$0$0$29,986,022
99$71,480,665$0$0$32,892,947
100$78,404,604$0$0$36,091,601