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%12.5%
1 years$78,450$77,751$77,070$76,404$75,754$74,963
2 years$38,837$38,113$37,412$36,733$36,073$35,277
3 years$25,634$24,908$24,208$23,535$22,887$22,109
4 years$19,034$18,310$17,617$16,956$16,323$15,570
5 years$15,075$14,355$13,672$13,024$12,408$11,683
6 years$12,436$11,722$11,049$10,415$9,818$9,122
7 years$10,552$9,844$9,182$8,563$7,985$7,317
8 years$9,140$8,438$7,787$7,183$6,624$5,984
9 years$8,042$7,347$6,707$6,118$5,579$4,967
10 years$7,165$6,476$5,847$5,274$4,753$4,170
11 years$6,447$5,765$5,148$4,590$4,088$3,532
12 years$5,849$5,175$4,568$4,026$3,543$3,013
13 years$5,344$4,676$4,082$3,554$3,089$2,586
14 years$4,911$4,251$3,667$3,155$2,708$2,230
15 years$4,536$3,883$3,311$2,814$2,384$1,931
16 years$4,209$3,563$3,002$2,520$2,107$1,678
17 years$3,920$3,281$2,732$2,264$1,868$1,463
18 years$3,664$3,032$2,494$2,040$1,661$1,278
19 years$3,435$2,810$2,283$1,843$1,481$1,119
20 years$3,229$2,611$2,095$1,670$1,323$982
21 years$3,043$2,432$1,927$1,515$1,184$863
22 years$2,874$2,270$1,776$1,378$1,061$759
23 years$2,720$2,123$1,640$1,255$952$669
24 years$2,579$1,989$1,517$1,144$856$590
25 years$2,449$1,867$1,405$1,045$770$521
26 years$2,330$1,755$1,303$956$694$460
27 years$2,220$1,651$1,210$875$626$407
28 years$2,117$1,556$1,125$801$564$360
29 years$2,022$1,468$1,047$735$510$318
30 years$1,934$1,386$975$674$461$282
31 years$1,851$1,311$909$619$416$250
32 years$1,774$1,240$848$569$377$221
33 years$1,701$1,174$792$523$341$196
34 years$1,633$1,113$740$482$309$174
35 years$1,569$1,056$692$443$280$154
36 years$1,509$1,002$647$408$253$137
37 years$1,452$952$606$376$230$122
38 years$1,398$904$567$347$208$108
39 years$1,347$860$531$320$189$96
40 years$1,299$818$498$295$171$85
41 years$1,253$779$467$272$155$76
42 years$1,209$742$438$251$141$67
43 years$1,168$707$411$232$128$60
44 years$1,129$674$386$214$116$53
45 years$1,091$642$362$198$105$47
46 years$1,055$613$340$183$96$42
47 years$1,021$585$320$169$87$37
48 years$989$558$300$156$79$33
49 years$957$533$282$144$72$29
50 years$928$509$265$133$65$26

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $950,000, adding $6,773 every year, while hoping to spend $46,235 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: 56/15/29 Blend
39$950,000$950,000$950,000$950,000
40$1,053,886$1,003,536$988,811$1,104,124
41$1,112,189$1,003,516$972,743$1,139,452
42$1,174,889$1,001,945$954,586$1,172,572
43$1,242,386$998,699$934,223$1,207,730
44$1,315,119$993,644$911,529$1,245,140
45$1,393,570$986,642$886,375$1,285,039
46$1,478,269$977,542$858,623$1,327,689
47$1,569,797$966,186$828,132$1,373,382
48$1,668,795$952,408$794,752$1,422,442
49$1,775,965$936,029$758,330$1,475,228
50$1,892,081$916,862$718,701$1,532,139
51$2,017,992$894,707$675,696$1,593,618
52$2,154,633$869,353$629,138$1,660,155
53$2,303,031$840,577$578,840$1,732,293
54$2,464,318$808,143$524,609$1,810,636
55$2,639,737$771,801$466,242$1,895,851
56$2,830,657$731,285$403,527$1,988,677
57$3,038,582$686,317$336,244$2,089,934
58$3,265,172$636,601$264,162$2,200,528
59$3,512,247$581,822$187,040$2,321,464
60$3,781,817$521,652$104,626$2,453,853
61$4,076,089$455,740$16,658$2,598,925
62$4,397,495$383,716$0$2,758,040
63$4,748,713$305,192$0$2,956,598
64$5,132,689$219,753$0$3,179,422
65$5,552,669$126,966$0$3,423,286
66$6,012,224$26,371$0$3,690,323
67$6,515,289$0$0$3,982,882
68$7,066,196$0$0$4,317,176
69$7,669,716$0$0$4,688,249
70$8,331,101$0$0$5,094,989
71$9,056,139$0$0$5,540,966
72$9,851,202$0$0$6,030,111
73$10,723,308$0$0$6,566,753
74$11,680,188$0$0$7,155,663
75$12,730,358$0$0$7,802,093
76$13,883,198$0$0$8,511,830
77$15,149,038$0$0$9,291,248
78$16,539,262$0$0$10,147,371
79$18,066,406$0$0$11,087,933
80$19,744,284$0$0$12,121,457
81$21,588,111$0$0$13,257,331
82$23,614,651$0$0$14,505,898
83$25,842,371$0$0$15,878,552
84$28,291,617$0$0$17,387,849
85$30,984,807$0$0$19,047,619
86$33,946,637$0$0$20,873,100
87$37,204,316$0$0$22,881,084
88$40,787,825$0$0$25,090,068
89$44,730,196$0$0$27,520,435
90$49,067,821$0$0$30,194,641
91$53,840,801$0$0$33,137,431
92$59,093,319$0$0$36,376,068
93$64,874,058$0$0$39,940,592
94$71,236,659$0$0$43,864,104
95$78,240,227$0$0$48,183,075
96$85,949,887$0$0$52,937,694
97$94,437,401$0$0$58,172,242
98$103,781,842$0$0$63,935,514
99$114,070,337$0$0$70,281,275
100$125,398,896$0$0$77,268,770