Can I retire at age 40 with 994,000?

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 $994,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$82,084$81,352$80,639$79,943$79,263$78,272
2 years$40,635$39,879$39,145$38,434$37,744$36,748
3 years$26,821$26,061$25,330$24,625$23,947$22,975
4 years$19,915$19,158$18,433$17,741$17,079$16,139
5 years$15,773$15,020$14,305$13,627$12,983$12,079
6 years$13,012$12,265$11,561$10,897$10,273$9,405
7 years$11,041$10,300$9,607$8,959$8,355$7,523
8 years$9,564$8,829$8,147$7,516$6,931$6,136
9 years$8,415$7,687$7,017$6,402$5,837$5,077
10 years$7,496$6,776$6,118$5,518$4,973$4,249
11 years$6,745$6,032$5,386$4,803$4,277$3,588
12 years$6,120$5,414$4,780$4,213$3,707$3,052
13 years$5,591$4,893$4,271$3,719$3,232$2,610
14 years$5,139$4,447$3,837$3,301$2,833$2,244
15 years$4,747$4,063$3,464$2,944$2,495$1,937
16 years$4,404$3,728$3,141$2,636$2,205$1,677
17 years$4,102$3,433$2,858$2,369$1,955$1,457
18 years$3,833$3,172$2,609$2,135$1,738$1,268
19 years$3,594$2,940$2,389$1,929$1,549$1,106
20 years$3,378$2,732$2,192$1,747$1,384$967
21 years$3,184$2,545$2,016$1,585$1,238$846
22 years$3,007$2,375$1,858$1,442$1,110$742
23 years$2,846$2,222$1,716$1,313$996$651
24 years$2,698$2,082$1,587$1,197$896$572
25 years$2,563$1,953$1,470$1,094$806$503
26 years$2,438$1,836$1,363$1,000$726$443
27 years$2,322$1,728$1,266$915$655$390
28 years$2,215$1,628$1,177$839$591$343
29 years$2,116$1,536$1,095$769$533$303
30 years$2,023$1,451$1,020$706$482$267
31 years$1,937$1,371$951$648$436$236
32 years$1,856$1,297$887$596$394$208
33 years$1,780$1,229$828$548$357$184
34 years$1,709$1,165$774$504$323$162
35 years$1,642$1,105$724$464$292$143
36 years$1,579$1,048$677$427$265$127
37 years$1,519$996$634$394$240$112
38 years$1,463$946$593$363$218$99
39 years$1,409$900$556$335$197$87
40 years$1,359$856$521$309$179$77
41 years$1,311$815$489$285$162$68
42 years$1,266$776$458$263$147$60
43 years$1,222$739$430$243$134$53
44 years$1,181$705$404$224$121$47
45 years$1,142$672$379$207$110$42
46 years$1,104$641$356$191$100$37
47 years$1,069$612$334$177$91$33
48 years$1,034$584$314$163$83$29
49 years$1,002$558$295$151$75$26
50 years$970$533$278$139$68$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $994,000, adding $3,125 every year, while hoping to spend $58,650 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: 31/46/23 Blend
39$994,000$994,000$994,000$994,000
40$1,098,611$1,045,929$1,030,522$1,124,771
41$1,148,267$1,034,777$1,002,642$1,133,786
42$1,201,021$1,021,112$971,861$1,138,019
43$1,257,129$1,004,750$938,022$1,141,373
44$1,316,868$985,495$900,958$1,143,808
45$1,380,543$963,139$860,495$1,145,289
46$1,448,488$937,462$816,451$1,145,778
47$1,521,067$908,232$768,636$1,145,244
48$1,598,683$875,201$716,851$1,143,657
49$1,681,772$838,110$660,890$1,140,993
50$1,770,817$796,682$600,534$1,137,231
51$1,866,347$750,625$535,558$1,132,357
52$1,968,940$699,631$465,725$1,126,365
53$2,079,232$643,374$390,787$1,119,254
54$2,197,923$581,508$310,487$1,111,037
55$2,325,778$513,669$224,556$1,101,736
56$2,463,639$439,471$132,711$1,091,384
57$2,612,433$358,507$34,659$1,080,033
58$2,773,175$270,348$0$1,067,749
59$2,946,982$174,538$0$1,071,793
60$3,135,082$70,598$0$1,085,293
61$3,338,825$0$0$1,099,950
62$3,559,694$0$0$1,137,261
63$3,799,322$0$0$1,216,640
64$4,059,503$0$0$1,302,963
65$4,342,210$0$0$1,396,900
66$4,649,616$0$0$1,499,192
67$4,984,110$0$0$1,610,651
68$5,348,319$0$0$1,732,174
69$5,745,136$0$0$1,864,744
70$6,177,743$0$0$2,009,448
71$6,649,645$0$0$2,167,478
72$7,164,697$0$0$2,340,148
73$7,727,142$0$0$2,528,906
74$8,341,654$0$0$2,735,344
75$9,013,376$0$0$2,961,216
76$9,747,971$0$0$3,208,454
77$10,551,675$0$0$3,479,183
78$11,431,353$0$0$3,775,746
79$12,394,565$0$0$4,100,721
80$13,449,637$0$0$4,456,950
81$14,605,738$0$0$4,847,559
82$15,872,964$0$0$5,275,994
83$17,262,437$0$0$5,746,050
84$18,786,405$0$0$6,261,907
85$20,458,358$0$0$6,828,168
86$22,293,156$0$0$7,449,906
87$24,307,167$0$0$8,132,707
88$26,518,421$0$0$8,882,726
89$28,946,777$0$0$9,706,742
90$31,614,116$0$0$10,612,223
91$34,544,539$0$0$11,607,399
92$37,764,597$0$0$12,701,333
93$41,303,541$0$0$13,904,013
94$45,193,596$0$0$15,226,442
95$49,470,266$0$0$16,680,741
96$54,172,664$0$0$18,280,266
97$59,343,884$0$0$20,039,733
98$65,031,405$0$0$21,975,354
99$71,287,538$0$0$24,104,993
100$78,169,919$0$0$26,448,333