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%16.4%
1 years$81,423$80,698$79,990$79,299$78,625$76,569
2 years$40,308$39,558$38,830$38,125$37,440$35,383
3 years$26,605$25,851$25,126$24,427$23,754$21,759
4 years$19,755$19,004$18,285$17,598$16,941$15,025
5 years$15,646$14,899$14,190$13,517$12,879$11,046
6 years$12,908$12,166$11,468$10,810$10,190$8,443
7 years$10,952$10,217$9,530$8,887$8,288$6,626
8 years$9,487$8,758$8,082$7,455$6,875$5,299
9 years$8,347$7,625$6,961$6,350$5,790$4,297
10 years$7,436$6,721$6,069$5,474$4,933$3,521
11 years$6,691$5,984$5,343$4,764$4,243$2,910
12 years$6,071$5,371$4,742$4,179$3,677$2,421
13 years$5,546$4,853$4,236$3,689$3,206$2,025
14 years$5,097$4,412$3,806$3,275$2,811$1,701
15 years$4,708$4,030$3,437$2,921$2,475$1,434
16 years$4,368$3,698$3,116$2,615$2,187$1,212
17 years$4,069$3,405$2,835$2,350$1,939$1,028
18 years$3,803$3,147$2,588$2,117$1,724$873
19 years$3,565$2,916$2,369$1,913$1,537$743
20 years$3,351$2,710$2,174$1,733$1,373$633
21 years$3,158$2,524$2,000$1,573$1,228$540
22 years$2,983$2,356$1,843$1,430$1,101$461
23 years$2,823$2,204$1,702$1,302$988$394
24 years$2,676$2,065$1,574$1,188$888$337
25 years$2,542$1,938$1,458$1,085$799$288
26 years$2,418$1,821$1,352$992$720$247
27 years$2,304$1,714$1,256$908$649$212
28 years$2,198$1,615$1,167$832$586$181
29 years$2,099$1,524$1,086$763$529$155
30 years$2,007$1,439$1,012$700$478$133
31 years$1,921$1,360$943$643$432$114
32 years$1,841$1,287$880$591$391$98
33 years$1,766$1,219$822$543$354$84
34 years$1,695$1,155$768$500$320$72
35 years$1,629$1,096$718$460$290$62
36 years$1,566$1,040$672$424$263$53
37 years$1,507$988$629$391$238$46
38 years$1,451$939$589$360$216$39
39 years$1,398$893$551$332$196$34
40 years$1,348$849$517$306$178$29
41 years$1,300$808$485$282$161$25
42 years$1,255$770$455$261$146$21
43 years$1,212$734$427$241$133$18
44 years$1,172$699$400$222$120$16
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$10
48 years$1,026$579$312$162$82$9
49 years$994$553$293$150$74$7
50 years$963$529$276$138$68$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $986,000, adding $2,367 every year, while hoping to spend $42,865 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: 35/49/16 Blend
39$986,000$986,000$986,000$986,000
40$1,089,014$1,036,756$1,021,473$1,121,687
41$1,154,485$1,041,949$1,010,084$1,150,852
42$1,225,198$1,045,959$996,877$1,178,097
43$1,301,641$1,048,685$981,746$1,206,577
44$1,384,354$1,050,015$964,579$1,236,423
45$1,473,926$1,049,834$945,261$1,267,786
46$1,571,008$1,048,018$923,668$1,300,833
47$1,676,315$1,044,434$899,675$1,335,749
48$1,790,632$1,038,945$873,148$1,372,746
49$1,914,825$1,031,402$843,947$1,412,058
50$2,049,845$1,021,648$811,927$1,453,946
51$2,196,737$1,009,517$776,934$1,498,704
52$2,356,653$994,833$738,811$1,546,659
53$2,530,860$977,408$697,389$1,598,176
54$2,720,752$957,045$652,496$1,653,663
55$2,927,863$933,534$603,948$1,713,572
56$3,153,881$906,653$551,557$1,778,411
57$3,400,665$876,167$495,122$1,848,743
58$3,670,261$841,828$434,437$1,925,195
59$3,964,923$803,372$369,286$2,008,464
60$4,287,129$760,522$299,441$2,099,327
61$4,639,610$712,981$224,666$2,198,646
62$5,025,373$660,440$144,715$2,307,381
63$5,447,728$602,569$59,330$2,426,597
64$5,910,321$539,020$0$2,557,477
65$6,417,167$469,424$0$2,706,762
66$6,972,687$393,395$0$2,881,643
67$7,581,750$310,521$0$3,073,647
68$8,249,721$220,368$0$3,284,621
69$8,982,505$122,478$0$3,516,607
70$9,786,609$16,369$0$3,771,865
71$10,669,200$0$0$4,052,897
72$11,638,173$0$0$4,415,566
73$12,702,224$0$0$4,823,662
74$13,870,932$0$0$5,272,052
75$15,154,850$0$0$5,764,804
76$16,565,604$0$0$6,306,398
77$18,116,001$0$0$6,901,773
78$19,820,151$0$0$7,556,368
79$21,693,599$0$0$8,276,177
80$23,753,469$0$0$9,067,801
81$26,018,631$0$0$9,938,515
82$28,509,871$0$0$10,896,336
83$31,250,095$0$0$11,950,092
84$34,264,536$0$0$13,109,515
85$37,580,998$0$0$14,385,326
86$41,230,116$0$0$15,789,336
87$45,245,644$0$0$17,334,562
88$49,664,772$0$0$19,035,344
89$54,528,480$0$0$20,907,485
90$59,881,920$0$0$22,968,396
91$65,774,844$0$0$25,237,263
92$72,262,072$0$0$27,735,226
93$79,404,011$0$0$30,485,580
94$87,267,221$0$0$33,513,993
95$95,925,044$0$0$36,848,749
96$105,458,298$0$0$40,521,014
97$115,956,033$0$0$44,565,131
98$127,516,378$0$0$49,018,945
99$140,247,463$0$0$53,924,154
100$154,268,438$0$0$59,326,711