Can I retire at age 40 with 984,000?

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 $984,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.8%
1 years$81,258$80,534$79,828$79,139$78,466$75,382
2 years$40,227$39,477$38,751$38,047$37,365$34,296
3 years$26,551$25,799$25,075$24,377$23,706$20,748
4 years$19,715$18,965$18,248$17,562$16,907$14,083
5 years$15,614$14,869$14,161$13,490$12,852$10,170
6 years$12,881$12,141$11,444$10,788$10,170$7,630
7 years$10,930$10,196$9,510$8,869$8,271$5,873
8 years$9,467$8,740$8,065$7,440$6,861$4,603
9 years$8,330$7,610$6,947$6,337$5,778$3,656
10 years$7,421$6,708$6,056$5,463$4,923$2,933
11 years$6,678$5,972$5,332$4,754$4,234$2,371
12 years$6,059$5,360$4,732$4,170$3,669$1,929
13 years$5,535$4,844$4,228$3,682$3,200$1,576
14 years$5,087$4,403$3,799$3,268$2,805$1,293
15 years$4,699$4,022$3,430$2,915$2,470$1,064
16 years$4,359$3,690$3,109$2,610$2,183$878
17 years$4,060$3,398$2,829$2,345$1,935$726
18 years$3,795$3,140$2,583$2,113$1,721$601
19 years$3,558$2,910$2,365$1,909$1,534$498
20 years$3,344$2,704$2,170$1,729$1,370$414
21 years$3,152$2,519$1,996$1,569$1,226$344
22 years$2,977$2,351$1,840$1,427$1,099$286
23 years$2,817$2,199$1,699$1,300$986$238
24 years$2,671$2,061$1,571$1,185$887$198
25 years$2,537$1,934$1,455$1,083$798$165
26 years$2,413$1,817$1,349$990$719$137
27 years$2,299$1,710$1,253$906$648$115
28 years$2,193$1,612$1,165$830$585$95
29 years$2,095$1,520$1,084$761$528$80
30 years$2,003$1,436$1,010$699$477$66
31 years$1,917$1,357$941$642$431$55
32 years$1,837$1,284$878$590$390$46
33 years$1,762$1,216$820$542$353$39
34 years$1,692$1,153$766$499$320$32
35 years$1,625$1,093$716$459$290$27
36 years$1,563$1,038$670$423$262$22
37 years$1,504$986$627$390$238$19
38 years$1,448$937$587$359$216$16
39 years$1,395$891$550$331$195$13
40 years$1,345$847$516$305$177$11
41 years$1,298$807$484$282$161$9
42 years$1,253$768$454$260$146$8
43 years$1,210$732$426$240$132$6
44 years$1,169$698$400$222$120$5
45 years$1,130$665$375$205$109$4
46 years$1,093$635$352$189$99$4
47 years$1,058$606$331$175$90$3
48 years$1,024$578$311$161$82$3
49 years$992$552$292$149$74$2
50 years$961$528$275$138$67$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $984,000, adding $6,998 every year, while hoping to spend $48,812 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: 33/41/26 Blend
39$984,000$984,000$984,000$984,000
40$1,091,586$1,039,434$1,024,182$1,118,774
41$1,150,993$1,038,431$1,006,557$1,138,905
42$1,214,822$1,035,743$986,705$1,155,728
43$1,283,475$1,031,235$964,501$1,172,895
44$1,357,390$1,024,766$939,812$1,190,467
45$1,437,048$1,016,184$912,500$1,208,518
46$1,522,980$1,005,330$882,422$1,227,133
47$1,615,766$992,033$849,425$1,246,410
48$1,716,046$976,115$813,353$1,266,461
49$1,824,522$957,384$774,039$1,287,416
50$1,941,966$935,638$731,312$1,309,423
51$2,069,226$910,664$684,991$1,332,650
52$2,207,236$882,235$634,887$1,357,287
53$2,357,022$850,113$580,803$1,383,554
54$2,519,713$814,042$522,534$1,411,695
55$2,696,549$773,756$459,865$1,441,990
56$2,888,898$728,971$392,571$1,474,753
57$3,098,261$679,386$320,417$1,510,338
58$3,326,291$624,684$243,160$1,549,145
59$3,574,810$564,530$160,542$1,591,622
60$3,845,818$498,569$72,298$1,638,274
61$4,141,519$426,427$0$1,689,667
62$4,464,341$347,709$0$1,752,503
63$4,816,952$261,995$0$1,843,222
64$5,202,293$168,845$0$1,942,624
65$5,623,600$67,791$0$2,051,686
66$6,084,437$0$0$2,171,491
67$6,588,726$0$0$2,322,035
68$7,140,789$0$0$2,520,467
69$7,745,383$0$0$2,737,928
70$8,407,747$0$0$2,976,323
71$9,133,651$0$0$3,237,746
72$9,929,448$0$0$3,524,506
73$10,802,138$0$0$3,839,146
74$11,759,429$0$0$4,184,465
75$12,809,811$0$0$4,563,550
76$13,962,636$0$0$4,979,798
77$15,228,205$0$0$5,436,953
78$16,617,865$0$0$5,939,137
79$18,144,117$0$0$6,490,894
80$19,820,731$0$0$7,097,229
81$21,662,875$0$0$7,763,653
82$23,687,261$0$0$8,496,242
83$25,912,301$0$0$9,301,687
84$28,358,276$0$0$10,187,361
85$31,047,532$0$0$11,161,385
86$34,004,689$0$0$12,232,710
87$37,256,870$0$0$13,411,195
88$40,833,961$0$0$14,707,705
89$44,768,887$0$0$16,134,208
90$49,097,926$0$0$17,703,893
91$53,861,050$0$0$19,431,292
92$59,102,299$0$0$21,332,416
93$64,870,199$0$0$23,424,908
94$71,218,218$0$0$25,728,206
95$78,205,270$0$0$28,263,731
96$85,896,268$0$0$31,055,083
97$94,362,742$0$0$34,128,269
98$103,683,505$0$0$37,511,946
99$113,945,403$0$0$41,237,689
100$125,244,129$0$0$45,340,293