Can I retire at age 42 with 1,040,000?

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 $1,040,000?

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$85,882$85,117$84,371$83,642$82,931$81,091
2 years$42,516$41,724$40,957$40,213$39,491$37,647
3 years$28,062$27,267$26,502$25,765$25,055$23,264
4 years$20,837$20,044$19,286$18,562$17,869$16,145
5 years$16,503$15,715$14,967$14,257$13,584$11,932
6 years$13,615$12,832$12,096$11,402$10,748$9,171
7 years$11,552$10,777$10,052$9,374$8,741$7,237
8 years$10,006$9,238$8,524$7,864$7,252$5,821
9 years$8,804$8,043$7,342$6,698$6,107$4,749
10 years$7,843$7,089$6,401$5,774$5,204$3,917
11 years$7,058$6,311$5,635$5,025$4,475$3,258
12 years$6,403$5,665$5,001$4,408$3,878$2,728
13 years$5,850$5,119$4,468$3,891$3,382$2,297
14 years$5,376$4,653$4,015$3,454$2,964$1,943
15 years$4,966$4,251$3,625$3,081$2,610$1,649
16 years$4,608$3,900$3,286$2,758$2,307$1,404
17 years$4,292$3,592$2,991$2,478$2,045$1,199
18 years$4,011$3,319$2,730$2,233$1,819$1,026
19 years$3,760$3,076$2,499$2,018$1,621$879
20 years$3,535$2,858$2,294$1,828$1,448$755
21 years$3,331$2,662$2,110$1,659$1,296$649
22 years$3,146$2,485$1,944$1,508$1,161$558
23 years$2,977$2,324$1,795$1,374$1,043$481
24 years$2,823$2,178$1,660$1,253$937$415
25 years$2,681$2,044$1,538$1,144$843$358
26 years$2,551$1,921$1,426$1,046$760$309
27 years$2,430$1,808$1,324$958$685$267
28 years$2,318$1,703$1,231$877$618$231
29 years$2,214$1,607$1,146$805$558$199
30 years$2,117$1,518$1,067$738$504$172
31 years$2,027$1,435$995$678$456$149
32 years$1,942$1,357$928$623$412$129
33 years$1,862$1,286$867$573$373$112
34 years$1,788$1,218$810$527$338$97
35 years$1,718$1,156$757$485$306$84
36 years$1,652$1,097$708$447$277$72
37 years$1,589$1,042$663$412$251$63
38 years$1,530$990$621$380$228$54
39 years$1,475$941$582$350$207$47
40 years$1,422$896$545$323$187$41
41 years$1,372$853$511$298$170$35
42 years$1,324$812$480$275$154$31
43 years$1,279$774$450$254$140$26
44 years$1,236$738$422$234$127$23
45 years$1,195$703$397$216$115$20
46 years$1,155$671$372$200$105$17
47 years$1,118$640$350$185$95$15
48 years$1,082$611$329$171$86$13
49 years$1,048$584$309$158$78$11
50 years$1,015$558$291$146$71$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $1,040,000, adding $4,816 every year, while hoping to spend $44,589 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: 37/39/24 Blend
41$1,040,000$1,040,000$1,040,000$1,040,000
42$1,151,048$1,095,928$1,079,808$1,185,196
43$1,221,012$1,102,186$1,068,539$1,216,890
44$1,296,619$1,107,256$1,055,398$1,246,629
45$1,378,395$1,111,033$1,040,276$1,277,867
46$1,466,923$1,113,406$1,023,057$1,310,766
47$1,562,841$1,114,254$1,003,620$1,345,508
48$1,666,851$1,113,452$981,841$1,382,297
49$1,779,724$1,110,866$957,588$1,421,359
50$1,902,310$1,106,353$930,721$1,462,949
51$2,035,544$1,099,762$901,098$1,507,350
52$2,180,451$1,090,932$868,567$1,554,878
53$2,338,164$1,079,695$832,971$1,605,885
54$2,509,926$1,065,869$794,145$1,660,765
55$2,697,106$1,049,264$751,916$1,719,954
56$2,901,209$1,029,676$706,103$1,783,939
57$3,123,894$1,006,893$656,520$1,853,262
58$3,366,987$980,685$602,969$1,928,526
59$3,632,495$950,815$545,244$2,010,400
60$3,922,630$917,025$483,130$2,099,629
61$4,239,828$879,049$416,404$2,197,040
62$4,586,767$836,599$344,831$2,303,551
63$4,966,401$789,376$268,166$2,420,182
64$5,381,978$737,060$186,154$2,548,065
65$5,837,078$679,314$98,528$2,688,454
66$6,335,642$615,782$5,010$2,842,742
67$6,882,009$546,087$0$3,012,473
68$7,480,960$469,831$0$3,223,632
69$8,137,758$386,593$0$3,456,787
70$8,858,203$295,930$0$3,712,837
71$9,648,681$197,372$0$3,994,193
72$10,516,226$90,423$0$4,303,520
73$11,468,588$0$0$4,643,762
74$12,514,301$0$0$5,029,092
75$13,662,768$0$0$5,495,053
76$14,924,347$0$0$6,007,061
77$16,310,448$0$0$6,569,767
78$17,833,642$0$0$7,188,293
79$19,507,776$0$0$7,868,284
80$21,348,109$0$0$8,615,958
81$23,371,447$0$0$9,438,166
82$25,596,309$0$0$10,342,455
83$28,043,098$0$0$11,337,142
84$30,734,292$0$0$12,431,389
85$33,694,658$0$0$13,635,292
86$36,951,484$0$0$14,959,974
87$40,534,835$0$0$16,417,691
88$44,477,839$0$0$18,021,947
89$48,816,995$0$0$19,787,621
90$53,592,521$0$0$21,731,107
91$58,848,730$0$0$23,870,472
92$64,634,451$0$0$26,225,620
93$71,003,485$0$0$28,818,484
94$78,015,114$0$0$31,673,233
95$85,734,662$0$0$34,816,497
96$94,234,106$0$0$38,277,620
97$103,592,761$0$0$42,088,938
98$113,898,022$0$0$46,286,081
99$125,246,192$0$0$50,908,311
100$137,743,389$0$0$55,998,891