Can I retire at age 40 with 997,000?

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 $997,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.7%
1 years$82,331$81,598$80,882$80,184$79,502$76,712
2 years$40,758$39,999$39,263$38,550$37,858$35,076
3 years$26,902$26,140$25,406$24,699$24,019$21,333
4 years$19,976$19,216$18,489$17,795$17,130$14,561
5 years$15,821$15,065$14,348$13,668$13,022$10,576
6 years$13,052$12,302$11,596$10,930$10,304$7,982
7 years$11,075$10,331$9,636$8,986$8,380$6,183
8 years$9,592$8,856$8,172$7,538$6,952$4,878
9 years$8,440$7,710$7,039$6,421$5,855$3,900
10 years$7,519$6,796$6,136$5,535$4,988$3,151
11 years$6,766$6,050$5,402$4,817$4,290$2,566
12 years$6,139$5,431$4,794$4,225$3,718$2,102
13 years$5,608$4,908$4,284$3,730$3,242$1,731
14 years$5,154$4,461$3,849$3,311$2,842$1,431
15 years$4,761$4,075$3,475$2,953$2,502$1,187
16 years$4,417$3,739$3,151$2,644$2,211$987
17 years$4,114$3,443$2,867$2,376$1,961$823
18 years$3,845$3,182$2,617$2,141$1,744$687
19 years$3,605$2,949$2,396$1,935$1,554$574
20 years$3,388$2,740$2,199$1,752$1,388$481
21 years$3,193$2,552$2,022$1,590$1,242$403
22 years$3,016$2,383$1,864$1,446$1,113$338
23 years$2,854$2,228$1,721$1,317$999$284
24 years$2,706$2,088$1,592$1,201$898$238
25 years$2,570$1,959$1,474$1,097$808$200
26 years$2,445$1,841$1,367$1,003$728$168
27 years$2,329$1,733$1,270$918$657$142
28 years$2,222$1,633$1,180$841$592$119
29 years$2,122$1,541$1,098$771$535$100
30 years$2,029$1,455$1,023$708$483$84
31 years$1,943$1,375$954$650$437$71
32 years$1,862$1,301$890$597$395$60
33 years$1,785$1,232$831$549$358$50
34 years$1,714$1,168$776$505$324$42
35 years$1,647$1,108$726$465$293$36
36 years$1,583$1,052$679$429$266$30
37 years$1,524$999$636$395$241$25
38 years$1,467$949$595$364$218$21
39 years$1,414$903$558$336$198$18
40 years$1,363$859$523$310$180$15
41 years$1,315$817$490$286$163$13
42 years$1,269$778$460$264$148$11
43 years$1,226$742$431$243$134$9
44 years$1,185$707$405$225$122$8
45 years$1,145$674$380$207$111$6
46 years$1,108$643$357$192$100$5
47 years$1,072$614$335$177$91$5
48 years$1,038$586$315$164$83$4
49 years$1,005$560$296$151$75$3
50 years$973$534$279$140$68$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $997,000, adding $6,406 every year, while hoping to spend $56,730 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: 78/8/14 Blend
39$997,000$997,000$997,000$997,000
40$1,105,302$1,052,461$1,037,007$1,187,858
41$1,157,682$1,043,671$1,011,387$1,234,342
42$1,213,504$1,032,549$983,007$1,277,452
43$1,273,059$1,018,921$951,714$1,323,144
44$1,336,665$1,002,603$917,351$1,371,655
45$1,404,672$983,398$879,750$1,423,243
46$1,477,464$961,099$838,736$1,478,195
47$1,555,459$935,487$794,128$1,536,830
48$1,639,121$906,331$745,736$1,599,495
49$1,728,953$873,383$693,360$1,666,576
50$1,825,511$836,384$636,793$1,738,499
51$1,929,405$795,058$575,817$1,815,733
52$2,041,304$749,115$510,206$1,898,796
53$2,161,941$698,246$439,723$1,988,260
54$2,292,125$642,127$364,119$2,084,756
55$2,432,743$580,411$283,138$2,188,979
56$2,584,768$512,737$196,508$2,301,699
57$2,749,272$438,719$103,949$2,423,763
58$2,927,432$357,950$5,166$2,556,107
59$3,120,543$270,003$0$2,699,763
60$3,330,029$174,424$0$2,870,848
61$3,557,456$70,734$0$3,057,439
62$3,804,544$0$0$3,260,201
63$4,073,188$0$0$3,484,378
64$4,365,472$0$0$3,735,086
65$4,683,689$0$0$4,008,067
66$5,030,362$0$0$4,305,491
67$5,408,266$0$0$4,629,743
68$5,820,459$0$0$4,983,449
69$6,270,302$0$0$5,369,500
70$6,761,499$0$0$5,791,076
71$7,298,123$0$0$6,251,681
72$7,884,663$0$0$6,755,170
73$8,526,056$0$0$7,305,787
74$9,227,743$0$0$7,908,208
75$9,995,710$0$0$8,567,579
76$10,836,551$0$0$9,289,567
77$11,757,529$0$0$10,080,412
78$12,766,640$0$0$10,946,988
79$13,872,690$0$0$11,896,863
80$15,085,379$0$0$12,938,374
81$16,415,388$0$0$14,080,702
82$17,874,485$0$0$15,333,959
83$19,475,628$0$0$16,709,286
84$21,233,093$0$0$18,218,950
85$23,162,605$0$0$19,876,468
86$25,281,484$0$0$21,696,727
87$27,608,813$0$0$23,696,127
88$30,165,610$0$0$25,892,736
89$32,975,033$0$0$28,306,456
90$36,062,591$0$0$30,959,214
91$39,456,390$0$0$33,875,167
92$43,187,392$0$0$37,080,928
93$47,289,709$0$0$40,605,817
94$51,800,924$0$0$44,482,138
95$56,762,445$0$0$48,745,481
96$62,219,893$0$0$53,435,060
97$68,223,532$0$0$58,594,077
98$74,828,744$0$0$64,270,137
99$82,096,550$0$0$70,515,688
100$90,094,183$0$0$77,388,520