Can I retire at age 40 with 989,000?

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 $989,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.1%
1 years$81,671$80,943$80,233$79,541$78,864$76,895
2 years$40,431$39,678$38,948$38,241$37,554$35,583
3 years$26,686$25,930$25,202$24,501$23,826$21,914
4 years$19,815$19,061$18,341$17,652$16,993$15,155
5 years$15,694$14,944$14,233$13,558$12,918$11,159
6 years$12,947$12,203$11,502$10,843$10,221$8,544
7 years$10,986$10,248$9,559$8,914$8,313$6,716
8 years$9,515$8,785$8,106$7,478$6,896$5,380
9 years$8,373$7,649$6,982$6,370$5,808$4,371
10 years$7,459$6,742$6,087$5,491$4,948$3,589
11 years$6,712$6,002$5,359$4,779$4,256$2,972
12 years$6,089$5,387$4,756$4,191$3,688$2,477
13 years$5,563$4,868$4,249$3,700$3,216$2,076
14 years$5,113$4,425$3,818$3,285$2,819$1,748
15 years$4,723$4,042$3,447$2,929$2,482$1,476
16 years$4,382$3,709$3,125$2,623$2,194$1,251
17 years$4,081$3,416$2,844$2,357$1,945$1,063
18 years$3,814$3,156$2,596$2,124$1,730$904
19 years$3,576$2,925$2,377$1,919$1,542$771
20 years$3,361$2,718$2,181$1,738$1,377$659
21 years$3,168$2,532$2,006$1,577$1,232$563
22 years$2,992$2,363$1,849$1,434$1,104$482
23 years$2,831$2,210$1,707$1,306$991$413
24 years$2,685$2,071$1,579$1,191$891$354
25 years$2,550$1,944$1,462$1,088$802$304
26 years$2,426$1,827$1,356$995$722$261
27 years$2,311$1,719$1,259$911$651$224
28 years$2,204$1,620$1,171$834$588$192
29 years$2,105$1,528$1,090$765$531$165
30 years$2,013$1,443$1,015$702$479$142
31 years$1,927$1,364$946$645$433$122
32 years$1,847$1,291$883$593$392$105
33 years$1,771$1,223$824$545$355$90
34 years$1,700$1,159$770$501$321$78
35 years$1,634$1,099$720$462$291$67
36 years$1,571$1,043$674$425$264$58
37 years$1,511$991$630$392$239$50
38 years$1,455$942$590$361$217$43
39 years$1,402$895$553$333$196$37
40 years$1,352$852$518$307$178$32
41 years$1,304$811$486$283$162$27
42 years$1,259$772$456$261$147$23
43 years$1,216$736$428$241$133$20
44 years$1,175$701$402$223$121$17
45 years$1,136$669$377$206$110$15
46 years$1,099$638$354$190$100$13
47 years$1,063$609$333$176$90$11
48 years$1,029$581$313$162$82$10
49 years$997$555$294$150$75$8
50 years$966$530$276$139$68$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $989,000, adding $2,696 every year, while hoping to spend $54,217 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: 52/28/20 Blend
39$989,000$989,000$989,000$989,000
40$1,092,659$1,040,242$1,024,912$1,143,322
41$1,146,424$1,033,527$1,001,561$1,171,774
42$1,203,855$1,024,667$975,609$1,196,852
43$1,265,271$1,013,497$946,914$1,222,971
44$1,331,017$999,847$915,324$1,250,249
45$1,401,475$983,534$880,682$1,278,819
46$1,477,062$964,364$842,822$1,308,829
47$1,558,238$942,134$801,572$1,340,446
48$1,645,505$916,625$756,751$1,373,857
49$1,739,415$887,608$708,171$1,409,273
50$1,840,576$854,841$655,635$1,446,929
51$1,949,652$818,066$598,936$1,487,090
52$2,067,376$777,011$537,861$1,530,049
53$2,194,553$731,388$472,183$1,576,138
54$2,332,065$680,894$401,669$1,625,726
55$2,480,883$625,206$326,073$1,679,222
56$2,642,077$563,984$245,139$1,737,087
57$2,816,818$496,869$158,601$1,799,833
58$3,006,398$423,480$66,179$1,868,030
59$3,212,237$343,417$0$1,942,314
60$3,435,896$256,255$0$2,030,317
61$3,679,092$161,546$0$2,141,424
62$3,943,715$58,818$0$2,262,440
63$4,231,845$0$0$2,394,410
64$4,545,769$0$0$2,554,644
65$4,888,004$0$0$2,749,175
66$5,261,323$0$0$2,961,468
67$5,668,775$0$0$3,193,270
68$6,113,716$0$0$3,446,502
69$6,599,844$0$0$3,723,280
70$7,131,226$0$0$4,025,934
71$7,712,343$0$0$4,357,030
72$8,348,126$0$0$4,719,392
73$9,044,006$0$0$5,116,130
74$9,805,964$0$0$5,550,669
75$10,640,584$0$0$6,026,781
76$11,555,120$0$0$6,548,620
77$12,557,559$0$0$7,120,760
78$13,656,696$0$0$7,748,240
79$14,862,220$0$0$8,436,610
80$16,184,804$0$0$9,191,981
81$17,636,199$0$0$10,021,089
82$19,229,355$0$0$10,931,348
83$20,978,531$0$0$11,930,929
84$22,899,439$0$0$13,028,832
85$25,009,383$0$0$14,234,970
86$27,327,430$0$0$15,560,267
87$29,874,580$0$0$17,016,753
88$32,673,972$0$0$18,617,686
89$35,751,096$0$0$20,377,668
90$39,134,035$0$0$22,312,789
91$42,853,727$0$0$24,440,776
92$46,944,261$0$0$26,781,157
93$51,443,192$0$0$29,355,451
94$56,391,898$0$0$32,187,366
95$61,835,969$0$0$35,303,022
96$67,825,637$0$0$38,731,200
97$74,416,247$0$0$42,503,612
98$81,668,779$0$0$46,655,197
99$89,650,425$0$0$51,224,455
100$98,435,219$0$0$56,253,805