Can I retire at age 40 with 987,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $987,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$81,506$80,780$80,071$79,380$78,705$76,958
2 years$40,349$39,598$38,870$38,163$37,478$35,728
3 years$26,632$25,878$25,151$24,452$23,778$22,078
4 years$19,775$19,023$18,304$17,616$16,959$15,323
5 years$15,662$14,914$14,204$13,531$12,892$11,324
6 years$12,921$12,178$11,479$10,821$10,201$8,703
7 years$10,963$10,227$9,539$8,896$8,296$6,869
8 years$9,496$8,767$8,090$7,463$6,882$5,525
9 years$8,356$7,633$6,968$6,357$5,796$4,507
10 years$7,444$6,728$6,075$5,480$4,938$3,717
11 years$6,698$5,990$5,348$4,769$4,247$3,092
12 years$6,077$5,376$4,746$4,183$3,680$2,589
13 years$5,552$4,858$4,241$3,693$3,209$2,180
14 years$5,102$4,416$3,810$3,278$2,813$1,844
15 years$4,713$4,034$3,440$2,924$2,477$1,565
16 years$4,373$3,701$3,119$2,618$2,189$1,333
17 years$4,073$3,409$2,838$2,352$1,941$1,138
18 years$3,806$3,150$2,591$2,120$1,726$974
19 years$3,568$2,919$2,372$1,915$1,538$834
20 years$3,355$2,713$2,177$1,735$1,374$716
21 years$3,161$2,527$2,002$1,574$1,230$616
22 years$2,986$2,359$1,845$1,431$1,102$530
23 years$2,826$2,206$1,704$1,304$989$457
24 years$2,679$2,067$1,576$1,189$889$394
25 years$2,545$1,940$1,459$1,086$800$340
26 years$2,421$1,823$1,354$993$721$293
27 years$2,306$1,716$1,257$909$650$253
28 years$2,200$1,617$1,168$833$586$219
29 years$2,101$1,525$1,087$764$530$189
30 years$2,009$1,440$1,013$701$478$164
31 years$1,923$1,362$944$644$433$141
32 years$1,843$1,288$881$591$391$122
33 years$1,768$1,220$823$544$354$106
34 years$1,697$1,156$769$500$321$92
35 years$1,630$1,097$719$461$290$79
36 years$1,568$1,041$672$424$263$69
37 years$1,508$989$629$391$238$59
38 years$1,452$940$589$360$216$52
39 years$1,400$893$552$332$196$45
40 years$1,349$850$517$306$178$39
41 years$1,302$809$485$283$161$33
42 years$1,257$771$455$261$146$29
43 years$1,214$734$427$241$133$25
44 years$1,173$700$401$222$121$22
45 years$1,134$667$376$205$109$19
46 years$1,097$637$354$190$99$16
47 years$1,061$608$332$175$90$14
48 years$1,027$580$312$162$82$12
49 years$995$554$293$150$74$11
50 years$964$529$276$138$68$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $987,000, adding $3,721 every year, while hoping to spend $44,519 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: 74/12/14 Blend
39$987,000$987,000$987,000$987,000
40$1,091,512$1,039,201$1,023,903$1,168,739
41$1,155,479$1,042,754$1,010,836$1,223,865
42$1,224,477$1,044,989$995,839$1,278,372
43$1,298,975$1,045,795$978,800$1,336,892
44$1,379,484$1,045,052$959,603$1,399,811
45$1,466,567$1,042,635$938,126$1,467,555
46$1,560,844$1,038,411$914,240$1,540,593
47$1,662,994$1,032,237$887,811$1,619,443
48$1,773,766$1,023,964$858,700$1,704,677
49$1,893,984$1,013,432$826,759$1,796,924
50$2,024,551$1,000,471$791,837$1,896,879
51$2,166,463$984,902$753,772$2,005,308
52$2,320,816$966,536$712,397$2,123,057
53$2,488,815$945,171$667,537$2,251,056
54$2,671,784$920,595$619,010$2,390,335
55$2,871,183$892,581$566,624$2,542,027
56$3,088,618$860,891$510,179$2,707,383
57$3,325,854$825,273$449,468$2,887,781
58$3,584,839$785,458$384,272$3,084,744
59$3,867,711$741,165$314,365$3,299,948
60$4,176,829$692,093$239,507$3,535,243
61$4,514,788$637,928$159,453$3,792,672
62$4,884,443$578,334$73,942$4,074,483
63$5,288,942$512,957$0$4,383,159
64$5,731,748$441,426$0$4,724,024
65$6,216,674$363,344$0$5,109,464
66$6,747,923$278,295$0$5,531,796
67$7,330,118$185,840$0$5,994,737
68$7,968,356$85,512$0$6,502,382
69$8,668,247$0$0$7,059,245
70$9,435,971$0$0$7,673,361
71$10,278,335$0$0$8,359,615
72$11,202,837$0$0$9,112,830
73$12,217,736$0$0$9,939,739
74$13,332,129$0$0$10,847,762
75$14,556,038$0$0$11,845,069
76$15,900,502$0$0$12,940,662
77$17,377,684$0$0$14,144,460
78$19,000,982$0$0$15,467,385
79$20,785,155$0$0$16,921,476
80$22,746,465$0$0$18,519,990
81$24,902,827$0$0$20,277,538
82$27,273,980$0$0$22,210,213
83$29,881,668$0$0$24,335,749
84$32,749,852$0$0$26,673,682
85$35,904,928$0$0$29,245,539
86$39,375,981$0$0$32,075,036
87$43,195,058$0$0$35,188,305
88$47,397,466$0$0$38,614,138
89$52,022,111$0$0$42,384,260
90$57,111,857$0$0$46,533,627
91$62,713,937$0$0$51,100,753
92$68,880,394$0$0$56,128,077
93$75,668,574$0$0$61,662,363
94$83,141,663$0$0$67,755,137
95$91,369,286$0$0$74,463,174
96$100,428,163$0$0$81,849,037
97$110,402,830$0$0$89,981,663
98$121,386,440$0$0$98,937,014
99$133,481,637$0$0$108,798,792
100$146,801,529$0$0$119,659,234