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%14.1%
1 years$81,258$80,534$79,828$79,139$78,466$77,134
2 years$40,227$39,477$38,751$38,047$37,365$36,027
3 years$26,551$25,799$25,075$24,377$23,706$22,404
4 years$19,715$18,965$18,248$17,562$16,907$15,651
5 years$15,614$14,869$14,161$13,490$12,852$11,646
6 years$12,881$12,141$11,444$10,788$10,170$9,014
7 years$10,930$10,196$9,510$8,869$8,271$7,166
8 years$9,467$8,740$8,065$7,440$6,861$5,808
9 years$8,330$7,610$6,947$6,337$5,778$4,775
10 years$7,421$6,708$6,056$5,463$4,923$3,969
11 years$6,678$5,972$5,332$4,754$4,234$3,329
12 years$6,059$5,360$4,732$4,170$3,669$2,811
13 years$5,535$4,844$4,228$3,682$3,200$2,387
14 years$5,087$4,403$3,799$3,268$2,805$2,037
15 years$4,699$4,022$3,430$2,915$2,470$1,745
16 years$4,359$3,690$3,109$2,610$2,183$1,500
17 years$4,060$3,398$2,829$2,345$1,935$1,292
18 years$3,795$3,140$2,583$2,113$1,721$1,116
19 years$3,558$2,910$2,365$1,909$1,534$966
20 years$3,344$2,704$2,170$1,729$1,370$837
21 years$3,152$2,519$1,996$1,569$1,226$727
22 years$2,977$2,351$1,840$1,427$1,099$632
23 years$2,817$2,199$1,699$1,300$986$550
24 years$2,671$2,061$1,571$1,185$887$479
25 years$2,537$1,934$1,455$1,083$798$418
26 years$2,413$1,817$1,349$990$719$364
27 years$2,299$1,710$1,253$906$648$318
28 years$2,193$1,612$1,165$830$585$278
29 years$2,095$1,520$1,084$761$528$243
30 years$2,003$1,436$1,010$699$477$212
31 years$1,917$1,357$941$642$431$185
32 years$1,837$1,284$878$590$390$162
33 years$1,762$1,216$820$542$353$142
34 years$1,692$1,153$766$499$320$124
35 years$1,625$1,093$716$459$290$109
36 years$1,563$1,038$670$423$262$95
37 years$1,504$986$627$390$238$83
38 years$1,448$937$587$359$216$73
39 years$1,395$891$550$331$195$64
40 years$1,345$847$516$305$177$56
41 years$1,298$807$484$282$161$49
42 years$1,253$768$454$260$146$43
43 years$1,210$732$426$240$132$38
44 years$1,169$698$400$222$120$33
45 years$1,130$665$375$205$109$29
46 years$1,093$635$352$189$99$25
47 years$1,058$606$331$175$90$22
48 years$1,024$578$311$161$82$19
49 years$992$552$292$149$74$17
50 years$961$528$275$138$67$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $984,000, adding $3,306 every year, while hoping to spend $40,114 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: 80/7/13 Blend
39$984,000$984,000$984,000$984,000
40$1,087,778$1,035,626$1,020,374$1,171,819
41$1,156,051$1,043,691$1,011,876$1,235,578
42$1,229,942$1,050,806$1,001,748$1,300,003
43$1,309,984$1,056,884$989,894$1,369,545
44$1,396,760$1,061,828$976,213$1,444,700
45$1,490,911$1,065,539$960,598$1,526,010
46$1,593,144$1,067,911$942,938$1,614,075
47$1,704,234$1,068,828$923,116$1,709,557
48$1,825,036$1,068,171$901,011$1,813,183
49$1,956,490$1,065,811$876,494$1,925,755
50$2,099,629$1,061,613$849,434$2,048,156
51$2,255,590$1,055,431$819,689$2,181,360
52$2,425,627$1,047,113$787,115$2,326,441
53$2,611,116$1,036,497$751,558$2,484,580
54$2,813,574$1,023,410$712,860$2,657,081
55$3,034,671$1,007,669$670,853$2,845,381
56$3,276,244$989,082$625,364$3,051,061
57$3,540,317$967,443$576,210$3,275,866
58$3,829,117$942,536$523,201$3,521,718
59$4,145,097$914,130$466,138$3,790,737
60$4,490,958$881,983$404,814$4,085,258
61$4,869,672$845,837$339,012$4,407,854
62$5,284,515$805,420$268,506$4,761,363
63$5,739,094$760,443$193,059$5,148,911
64$6,237,380$710,603$112,425$5,573,944
65$6,783,747$655,578$26,345$6,040,261
66$7,383,014$595,025$0$6,552,049
67$8,040,487$528,587$0$7,123,008
68$8,762,010$455,881$0$7,753,629
69$9,554,023$376,507$0$8,445,900
70$10,423,617$290,040$0$9,206,041
71$11,378,605$196,031$0$10,040,906
72$12,427,593$94,007$0$10,958,049
73$13,580,062$0$0$11,965,790
74$14,846,454$0$0$13,074,571
75$16,238,278$0$0$14,301,160
76$17,768,208$0$0$15,649,490
77$19,450,211$0$0$17,131,872
78$21,299,672$0$0$18,761,870
79$23,333,542$0$0$20,554,429
80$25,570,498$0$0$22,526,012
81$28,031,116$0$0$24,694,760
82$30,738,070$0$0$27,080,659
83$33,716,338$0$0$29,705,733
84$36,993,443$0$0$32,594,243
85$40,599,711$0$0$35,772,925
86$44,568,555$0$0$39,271,235
87$48,936,794$0$0$43,121,632
88$53,744,994$0$0$47,359,878
89$59,037,855$0$0$52,025,380
90$64,864,630$0$0$57,161,559
91$71,279,590$0$0$62,816,261
92$78,342,538$0$0$69,042,205
93$86,119,368$0$0$75,897,484
94$94,682,690$0$0$83,446,111
95$104,112,515$0$0$91,758,620
96$114,497,005$0$0$100,912,737
97$125,933,312$0$0$110,994,109
98$138,528,486$0$0$122,097,110
99$152,400,492$0$0$134,325,739
100$167,679,320$0$0$147,794,591