Can I retire at age 40 with 989,000?

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 $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%18.9%
1 years$81,671$80,943$80,233$79,541$78,864$76,036
2 years$40,431$39,678$38,948$38,241$37,554$34,735
3 years$26,686$25,930$25,202$24,501$23,826$21,105
4 years$19,815$19,061$18,341$17,652$16,993$14,391
5 years$15,694$14,944$14,233$13,558$12,918$10,441
6 years$12,947$12,203$11,502$10,843$10,221$7,872
7 years$10,986$10,248$9,559$8,914$8,313$6,091
8 years$9,515$8,785$8,106$7,478$6,896$4,799
9 years$8,373$7,649$6,982$6,370$5,808$3,833
10 years$7,459$6,742$6,087$5,491$4,948$3,092
11 years$6,712$6,002$5,359$4,779$4,256$2,515
12 years$6,089$5,387$4,756$4,191$3,688$2,058
13 years$5,563$4,868$4,249$3,700$3,216$1,692
14 years$5,113$4,425$3,818$3,285$2,819$1,397
15 years$4,723$4,042$3,447$2,929$2,482$1,157
16 years$4,382$3,709$3,125$2,623$2,194$961
17 years$4,081$3,416$2,844$2,357$1,945$800
18 years$3,814$3,156$2,596$2,124$1,730$667
19 years$3,576$2,925$2,377$1,919$1,542$557
20 years$3,361$2,718$2,181$1,738$1,377$465
21 years$3,168$2,532$2,006$1,577$1,232$389
22 years$2,992$2,363$1,849$1,434$1,104$326
23 years$2,831$2,210$1,707$1,306$991$273
24 years$2,685$2,071$1,579$1,191$891$229
25 years$2,550$1,944$1,462$1,088$802$192
26 years$2,426$1,827$1,356$995$722$161
27 years$2,311$1,719$1,259$911$651$135
28 years$2,204$1,620$1,171$834$588$114
29 years$2,105$1,528$1,090$765$531$96
30 years$2,013$1,443$1,015$702$479$80
31 years$1,927$1,364$946$645$433$67
32 years$1,847$1,291$883$593$392$57
33 years$1,771$1,223$824$545$355$48
34 years$1,700$1,159$770$501$321$40
35 years$1,634$1,099$720$462$291$34
36 years$1,571$1,043$674$425$264$28
37 years$1,511$991$630$392$239$24
38 years$1,455$942$590$361$217$20
39 years$1,402$895$553$333$196$17
40 years$1,352$852$518$307$178$14
41 years$1,304$811$486$283$162$12
42 years$1,259$772$456$261$147$10
43 years$1,216$736$428$241$133$8
44 years$1,175$701$402$223$121$7
45 years$1,136$669$377$206$110$6
46 years$1,099$638$354$190$100$5
47 years$1,063$609$333$176$90$4
48 years$1,029$581$313$162$82$4
49 years$997$555$294$150$75$3
50 years$966$530$276$139$68$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $989,000, adding $6,345 every year, while hoping to spend $49,881 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: 57/35/8 Blend
39$989,000$989,000$989,000$989,000
40$1,096,423$1,044,006$1,028,676$1,156,554
41$1,155,185$1,042,089$1,010,064$1,195,871
42$1,218,269$1,038,407$989,156$1,232,546
43$1,286,063$1,032,819$965,824$1,271,285
44$1,358,994$1,025,180$939,931$1,312,288
45$1,437,528$1,015,330$911,336$1,355,781
46$1,522,181$1,003,106$879,890$1,402,014
47$1,613,515$988,331$845,439$1,451,264
48$1,712,152$970,817$807,819$1,503,839
49$1,818,773$950,369$766,863$1,560,080
50$1,934,127$926,776$722,392$1,620,366
51$2,059,037$899,817$674,220$1,685,119
52$2,194,408$869,257$622,156$1,754,803
53$2,341,235$834,848$565,996$1,829,938
54$2,500,613$796,328$505,529$1,911,097
55$2,673,745$753,418$440,534$1,998,915
56$2,861,957$705,824$370,781$2,094,098
57$3,066,703$653,237$296,029$2,197,428
58$3,289,588$595,327$216,027$2,309,768
59$3,532,375$531,746$130,513$2,432,079
60$3,797,004$462,129$39,212$2,565,423
61$4,085,612$386,087$0$2,710,974
62$4,400,550$303,210$0$2,875,005
63$4,744,404$213,065$0$3,057,882
64$5,120,024$115,196$0$3,257,876
65$5,530,545$9,119$0$3,476,779
66$5,979,420$0$0$3,716,572
67$6,470,451$0$0$4,020,146
68$7,007,822$0$0$4,356,298
69$7,596,143$0$0$4,724,409
70$8,240,488$0$0$5,127,667
71$8,946,447$0$0$5,569,580
72$9,720,175$0$0$6,054,013
73$10,568,450$0$0$6,585,223
74$11,498,740$0$0$7,167,898
75$12,519,267$0$0$7,807,201
76$13,639,088$0$0$8,508,821
77$14,868,182$0$0$9,279,023
78$16,217,536$0$0$10,124,709
79$17,699,259$0$0$11,053,479
80$19,326,684$0$0$12,073,710
81$21,114,503$0$0$13,194,627
82$23,078,899$0$0$14,426,393
83$25,237,701$0$0$15,780,206
84$27,610,551$0$0$17,268,400
85$30,219,087$0$0$18,904,567
86$33,087,150$0$0$20,703,679
87$36,241,006$0$0$22,682,232
88$39,709,593$0$0$24,858,401
89$43,524,793$0$0$27,252,210
90$47,721,736$0$0$29,885,723
91$52,339,125$0$0$32,783,248
92$57,419,606$0$0$35,971,571
93$63,010,166$0$0$39,480,201
94$69,162,576$0$0$43,341,658
95$75,933,881$0$0$47,591,768
96$83,386,936$0$0$52,270,012
97$91,590,998$0$0$57,419,889
98$100,622,381$0$0$63,089,331
99$110,565,171$0$0$69,331,154
100$121,512,024$0$0$76,203,553