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%16.2%
1 years$81,423$80,698$79,990$79,299$78,625$76,631
2 years$40,308$39,558$38,830$38,125$37,440$35,444
3 years$26,605$25,851$25,126$24,427$23,754$21,818
4 years$19,755$19,004$18,285$17,598$16,941$15,081
5 years$15,646$14,899$14,190$13,517$12,879$11,099
6 years$12,908$12,166$11,468$10,810$10,190$8,493
7 years$10,952$10,217$9,530$8,887$8,288$6,672
8 years$9,487$8,758$8,082$7,455$6,875$5,342
9 years$8,347$7,625$6,961$6,350$5,790$4,337
10 years$7,436$6,721$6,069$5,474$4,933$3,559
11 years$6,691$5,984$5,343$4,764$4,243$2,945
12 years$6,071$5,371$4,742$4,179$3,677$2,453
13 years$5,546$4,853$4,236$3,689$3,206$2,055
14 years$5,097$4,412$3,806$3,275$2,811$1,728
15 years$4,708$4,030$3,437$2,921$2,475$1,459
16 years$4,368$3,698$3,116$2,615$2,187$1,235
17 years$4,069$3,405$2,835$2,350$1,939$1,049
18 years$3,803$3,147$2,588$2,117$1,724$892
19 years$3,565$2,916$2,369$1,913$1,537$760
20 years$3,351$2,710$2,174$1,733$1,373$649
21 years$3,158$2,524$2,000$1,573$1,228$554
22 years$2,983$2,356$1,843$1,430$1,101$474
23 years$2,823$2,204$1,702$1,302$988$406
24 years$2,676$2,065$1,574$1,188$888$348
25 years$2,542$1,938$1,458$1,085$799$298
26 years$2,418$1,821$1,352$992$720$256
27 years$2,304$1,714$1,256$908$649$219
28 years$2,198$1,615$1,167$832$586$188
29 years$2,099$1,524$1,086$763$529$162
30 years$2,007$1,439$1,012$700$478$139
31 years$1,921$1,360$943$643$432$119
32 years$1,841$1,287$880$591$391$103
33 years$1,766$1,219$822$543$354$88
34 years$1,695$1,155$768$500$320$76
35 years$1,629$1,096$718$460$290$65
36 years$1,566$1,040$672$424$263$56
37 years$1,507$988$629$391$238$48
38 years$1,451$939$589$360$216$41
39 years$1,398$893$551$332$196$36
40 years$1,348$849$517$306$178$31
41 years$1,300$808$485$282$161$26
42 years$1,255$770$455$261$146$23
43 years$1,212$734$427$241$133$20
44 years$1,172$699$400$222$120$17
45 years$1,133$667$376$205$109$14
46 years$1,095$636$353$190$99$12
47 years$1,060$607$332$175$90$11
48 years$1,026$579$312$162$82$9
49 years$994$553$293$150$74$8
50 years$963$529$276$138$68$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $986,000, adding $3,930 every year, while hoping to spend $29,070 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: 81/8/11 Blend
39$986,000$986,000$986,000$986,000
40$1,090,626$1,038,368$1,023,085$1,176,598
41$1,170,939$1,058,318$1,026,428$1,253,498
42$1,258,471$1,078,271$1,028,909$1,333,675
43$1,353,925$1,098,196$1,030,468$1,420,819
44$1,458,079$1,118,062$1,031,042$1,515,615
45$1,571,788$1,137,831$1,030,566$1,618,815
46$1,695,992$1,157,466$1,028,972$1,731,248
47$1,831,727$1,176,926$1,026,186$1,853,827
48$1,980,133$1,196,166$1,022,134$1,987,557
49$2,142,466$1,215,137$1,016,735$2,133,546
50$2,320,109$1,233,790$1,009,906$2,293,015
51$2,514,583$1,252,069$1,001,561$2,467,308
52$2,727,565$1,269,915$991,608$2,657,906
53$2,960,900$1,287,264$979,951$2,866,441
54$3,216,622$1,304,051$966,490$3,094,709
55$3,496,970$1,320,202$951,119$3,344,693
56$3,804,409$1,335,640$933,730$3,618,574
57$4,141,656$1,350,283$914,207$3,918,756
58$4,511,701$1,364,043$892,429$4,247,889
59$4,917,840$1,376,827$868,271$4,608,893
60$5,363,703$1,388,535$841,601$5,004,983
61$5,853,288$1,399,059$812,282$5,439,704
62$6,390,998$1,408,288$780,168$5,916,962
63$6,981,686$1,416,101$745,110$6,441,061
64$7,630,697$1,422,369$706,950$7,016,743
65$8,343,918$1,426,955$665,523$7,649,233
66$9,127,838$1,429,715$620,658$8,344,291
67$9,989,601$1,430,495$572,174$9,108,263
68$10,937,082$1,429,131$519,883$9,948,141
69$11,978,955$1,425,449$463,590$10,871,632
70$13,124,777$1,419,265$403,089$11,887,228
71$14,385,078$1,410,383$338,167$13,004,289
72$15,771,460$1,398,595$268,599$14,233,125
73$17,296,704$1,383,682$194,152$15,585,104
74$18,974,895$1,365,409$114,583$17,072,748
75$20,821,549$1,343,529$29,637$18,709,860
76$22,853,766$1,317,781$0$20,511,651
77$25,090,384$1,287,886$0$22,502,042
78$27,552,162$1,253,551$0$24,696,523
79$30,261,971$1,214,464$0$27,112,000
80$33,245,015$1,170,295$0$29,770,944
81$36,529,063$1,120,697$0$32,698,112
82$40,144,716$1,065,299$0$35,920,788
83$44,125,690$1,003,712$0$39,469,036
84$48,509,140$935,523$0$43,375,984
85$53,336,004$860,296$0$47,678,140
86$58,651,395$777,568$0$52,415,732
87$64,505,021$686,854$0$57,633,091
88$70,951,660$587,636$0$63,379,068
89$78,051,671$479,372$0$69,707,496
90$85,871,565$361,485$0$76,677,696
91$94,484,636$233,368$0$84,355,038
92$103,971,645$94,380$0$92,811,562
93$114,421,592$0$0$102,126,649
94$125,932,545$0$0$112,392,722
95$138,612,574$0$0$123,710,629
96$152,580,766$0$0$136,178,358
97$167,968,349$0$0$149,913,046
98$184,919,933$0$0$165,043,774
99$203,594,870$0$0$181,712,784
100$224,168,764$0$0$200,076,821