Can I retire at age 40 with 986,000?

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 $986,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12%
1 years$81,423$80,698$79,990$79,299$78,625$77,966
2 years$40,308$39,558$38,830$38,125$37,440$36,777
3 years$26,605$25,851$25,126$24,427$23,754$23,105
4 years$19,755$19,004$18,285$17,598$16,941$16,313
5 years$15,646$14,899$14,190$13,517$12,879$12,273
6 years$12,908$12,166$11,468$10,810$10,190$9,607
7 years$10,952$10,217$9,530$8,887$8,288$7,728
8 years$9,487$8,758$8,082$7,455$6,875$6,339
9 years$8,347$7,625$6,961$6,350$5,790$5,277
10 years$7,436$6,721$6,069$5,474$4,933$4,443
11 years$6,691$5,984$5,343$4,764$4,243$3,775
12 years$6,071$5,371$4,742$4,179$3,677$3,231
13 years$5,546$4,853$4,236$3,689$3,206$2,782
14 years$5,097$4,412$3,806$3,275$2,811$2,407
15 years$4,708$4,030$3,437$2,921$2,475$2,091
16 years$4,368$3,698$3,116$2,615$2,187$1,824
17 years$4,069$3,405$2,835$2,350$1,939$1,595
18 years$3,803$3,147$2,588$2,117$1,724$1,399
19 years$3,565$2,916$2,369$1,913$1,537$1,229
20 years$3,351$2,710$2,174$1,733$1,373$1,082
21 years$3,158$2,524$2,000$1,573$1,228$954
22 years$2,983$2,356$1,843$1,430$1,101$843
23 years$2,823$2,204$1,702$1,302$988$745
24 years$2,676$2,065$1,574$1,188$888$660
25 years$2,542$1,938$1,458$1,085$799$585
26 years$2,418$1,821$1,352$992$720$519
27 years$2,304$1,714$1,256$908$649$460
28 years$2,198$1,615$1,167$832$586$409
29 years$2,099$1,524$1,086$763$529$363
30 years$2,007$1,439$1,012$700$478$323
31 years$1,921$1,360$943$643$432$287
32 years$1,841$1,287$880$591$391$256
33 years$1,766$1,219$822$543$354$228
34 years$1,695$1,155$768$500$320$203
35 years$1,629$1,096$718$460$290$181
36 years$1,566$1,040$672$424$263$161
37 years$1,507$988$629$391$238$143
38 years$1,451$939$589$360$216$128
39 years$1,398$893$551$332$196$114
40 years$1,348$849$517$306$178$102
41 years$1,300$808$485$282$161$91
42 years$1,255$770$455$261$146$81
43 years$1,212$734$427$241$133$72
44 years$1,172$699$400$222$120$64
45 years$1,133$667$376$205$109$57
46 years$1,095$636$353$190$99$51
47 years$1,060$607$332$175$90$46
48 years$1,026$579$312$162$82$41
49 years$994$553$293$150$74$36
50 years$963$529$276$138$68$32

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $986,000, adding $3,035 every year, while hoping to spend $51,823 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: 56/23/21 Blend
39$986,000$986,000$986,000$986,000
40$1,089,703$1,037,445$1,022,162$1,144,390
41$1,145,713$1,033,140$1,001,265$1,177,776
42$1,205,700$1,026,888$977,931$1,208,354
43$1,270,013$1,018,538$952,024$1,240,541
44$1,339,039$1,007,930$923,401$1,274,506
45$1,413,199$994,897$891,913$1,310,436
46$1,492,957$979,258$857,404$1,348,542
47$1,578,822$960,825$819,710$1,389,056
48$1,671,353$939,397$778,662$1,432,238
49$1,771,164$914,761$734,080$1,478,376
50$1,878,930$886,691$685,779$1,527,793
51$1,995,392$854,950$633,564$1,580,847
52$2,121,365$819,286$577,231$1,637,935
53$2,257,744$779,430$516,568$1,699,499
54$2,405,513$735,102$451,352$1,766,032
55$2,565,756$686,002$381,353$1,838,078
56$2,739,662$631,816$306,327$1,916,244
57$2,928,540$572,208$226,023$2,001,203
58$3,133,832$506,826$140,175$2,093,701
59$3,357,121$435,299$48,508$2,194,567
60$3,600,149$357,230$0$2,304,718
61$3,864,836$272,206$0$2,436,223
62$4,153,290$179,786$0$2,591,479
63$4,467,836$79,505$0$2,760,925
64$4,811,029$0$0$2,946,021
65$5,185,684$0$0$3,155,748
66$5,594,896$0$0$3,406,881
67$6,042,078$0$0$3,681,402
68$6,530,981$0$0$3,981,624
69$7,065,740$0$0$4,310,098
70$7,650,905$0$0$4,669,631
71$8,291,487$0$0$5,063,312
72$8,993,005$0$0$5,494,547
73$9,761,535$0$0$5,967,082
74$10,603,769$0$0$6,485,048
75$11,527,077$0$0$7,052,989
76$12,539,578$0$0$7,675,915
77$13,650,210$0$0$8,359,339
78$14,868,822$0$0$9,109,338
79$16,206,261$0$0$9,932,603
80$17,674,475$0$0$10,836,506
81$19,286,624$0$0$11,829,167
82$21,057,207$0$0$12,919,529
83$23,002,195$0$0$14,117,449
84$25,139,183$0$0$15,433,780
85$27,487,551$0$0$16,880,482
86$30,068,655$0$0$18,470,729
87$32,906,019$0$0$20,219,038
88$36,025,561$0$0$22,141,400
89$39,455,834$0$0$24,255,433
90$43,228,298$0$0$26,580,550
91$47,377,615$0$0$29,138,136
92$51,941,973$0$0$31,951,758
93$56,963,448$0$0$35,047,376
94$62,488,401$0$0$38,453,599
95$68,567,912$0$0$42,201,946
96$75,258,262$0$0$46,327,145
97$82,621,465$0$0$50,867,464
98$90,725,851$0$0$55,865,066
99$99,646,710$0$0$61,366,410
100$109,467,001$0$0$67,422,690