Can I retire at age 40 with 960,000?

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 $960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.8%
1 years$79,276$78,570$77,881$77,208$76,552$73,836
2 years$39,245$38,515$37,806$37,119$36,453$33,746
3 years$25,904$25,170$24,463$23,783$23,127$20,514
4 years$19,234$18,502$17,803$17,134$16,495$13,995
5 years$15,234$14,506$13,816$13,161$12,539$10,159
6 years$12,567$11,845$11,165$10,525$9,922$7,664
7 years$10,664$9,948$9,278$8,653$8,069$5,933
8 years$9,236$8,527$7,869$7,259$6,694$4,677
9 years$8,127$7,424$6,777$6,183$5,637$3,738
10 years$7,240$6,544$5,909$5,330$4,803$3,018
11 years$6,515$5,826$5,202$4,638$4,131$2,456
12 years$5,911$5,229$4,617$4,068$3,580$2,011
13 years$5,400$4,725$4,125$3,592$3,122$1,655
14 years$4,963$4,295$3,706$3,188$2,736$1,367
15 years$4,584$3,924$3,346$2,844$2,409$1,133
16 years$4,253$3,600$3,034$2,546$2,129$942
17 years$3,961$3,316$2,760$2,288$1,888$784
18 years$3,702$3,064$2,520$2,062$1,679$654
19 years$3,471$2,839$2,307$1,863$1,496$547
20 years$3,263$2,639$2,117$1,687$1,337$457
21 years$3,075$2,458$1,947$1,531$1,196$383
22 years$2,904$2,294$1,795$1,392$1,072$321
23 years$2,748$2,146$1,657$1,268$962$269
24 years$2,606$2,010$1,533$1,156$865$226
25 years$2,475$1,887$1,420$1,056$778$190
26 years$2,354$1,773$1,317$966$701$159
27 years$2,243$1,669$1,223$884$632$134
28 years$2,140$1,572$1,136$810$570$112
29 years$2,044$1,483$1,058$743$515$95
30 years$1,954$1,401$985$682$465$80
31 years$1,871$1,324$918$626$421$67
32 years$1,792$1,253$857$575$381$56
33 years$1,719$1,187$800$529$344$47
34 years$1,650$1,125$748$487$312$40
35 years$1,586$1,067$699$448$282$33
36 years$1,525$1,013$654$413$256$28
37 years$1,467$962$612$380$232$24
38 years$1,413$914$573$350$210$20
39 years$1,361$869$537$323$191$17
40 years$1,312$827$503$298$173$14
41 years$1,266$787$472$275$157$12
42 years$1,222$750$443$254$142$10
43 years$1,180$714$415$234$129$8
44 years$1,141$681$390$216$117$7
45 years$1,103$649$366$200$106$6
46 years$1,067$619$344$185$97$5
47 years$1,032$591$323$170$88$4
48 years$999$564$304$158$80$4
49 years$967$539$285$146$72$3
50 years$937$515$268$135$66$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $960,000, adding $4,424 every year, while hoping to spend $43,929 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: 39/50/11 Blend
39$960,000$960,000$960,000$960,000
40$1,062,483$1,011,603$996,723$1,100,222
41$1,124,117$1,014,432$983,373$1,130,164
42$1,190,564$1,015,927$968,104$1,157,870
43$1,262,270$1,015,976$950,804$1,186,850
44$1,339,724$1,014,461$931,359$1,217,239
45$1,423,463$1,011,256$909,646$1,249,189
46$1,514,076$1,006,227$885,539$1,282,868
47$1,612,212$999,233$858,904$1,318,465
48$1,718,584$990,122$829,605$1,356,193
49$1,833,978$978,736$797,494$1,396,288
50$1,959,254$964,905$762,421$1,439,016
51$2,095,362$948,449$724,227$1,484,672
52$2,243,346$929,180$682,745$1,533,586
53$2,404,353$906,896$637,803$1,586,127
54$2,579,647$881,383$589,219$1,642,706
55$2,770,617$852,417$536,804$1,703,779
56$2,978,793$819,759$480,360$1,769,858
57$3,205,859$783,156$419,681$1,841,509
58$3,453,668$742,342$354,551$1,919,365
59$3,724,258$697,033$284,745$2,004,128
60$4,019,875$646,930$210,027$2,096,580
61$4,342,992$591,719$130,152$2,197,591
62$4,696,328$531,065$44,863$2,308,125
63$5,082,881$464,614$0$2,429,254
64$5,505,949$391,995$0$2,567,587
65$5,969,166$312,813$0$2,725,000
66$6,476,532$226,651$0$2,897,722
67$7,032,452$133,071$0$3,087,416
68$7,641,778$31,607$0$3,295,924
69$8,309,854$0$0$3,525,285
70$9,042,565$0$0$3,820,799
71$9,846,393$0$0$4,164,204
72$10,728,479$0$0$4,541,178
73$11,696,687$0$0$4,955,099
74$12,759,679$0$0$5,409,687
75$13,927,000$0$0$5,909,042
76$15,209,162$0$0$6,457,679
77$16,617,744$0$0$7,060,574
78$18,165,506$0$0$7,723,207
79$19,866,500$0$0$8,451,615
80$21,736,212$0$0$9,252,452
81$23,791,699$0$0$10,133,045
82$26,051,755$0$0$11,101,469
83$28,537,086$0$0$12,166,620
84$31,270,504$0$0$13,338,300
85$34,277,144$0$0$14,627,308
86$37,584,698$0$0$16,045,543
87$41,223,678$0$0$17,606,114
88$45,227,703$0$0$19,323,467
89$49,633,813$0$0$21,213,519
90$54,482,822$0$0$23,293,805
91$59,819,700$0$0$25,583,652
92$65,693,998$0$0$28,104,349
93$72,160,315$0$0$30,879,360
94$79,278,810$0$0$33,934,535
95$87,115,773$0$0$37,298,361
96$95,744,247$0$0$41,002,225
97$105,244,720$0$0$45,080,716
98$115,705,880$0$0$49,571,946
99$127,225,453$0$0$54,517,910
100$139,911,127$0$0$59,964,886