Can I retire at age 42 with 400,000?

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 $400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.5%
1 years$33,032$32,737$32,450$32,170$31,897$30,680
2 years$16,352$16,048$15,753$15,466$15,189$13,977
3 years$10,793$10,487$10,193$9,909$9,636$8,468
4 years$8,014$7,709$7,418$7,139$6,873$5,757
5 years$6,347$6,044$5,757$5,484$5,225$4,163
6 years$5,236$4,936$4,652$4,385$4,134$3,129
7 years$4,443$4,145$3,866$3,605$3,362$2,412
8 years$3,849$3,553$3,279$3,024$2,789$1,894
9 years$3,386$3,093$2,824$2,576$2,349$1,507
10 years$3,017$2,727$2,462$2,221$2,001$1,211
11 years$2,714$2,427$2,167$1,933$1,721$981
12 years$2,463$2,179$1,924$1,695$1,492$800
13 years$2,250$1,969$1,719$1,497$1,301$655
14 years$2,068$1,790$1,544$1,329$1,140$538
15 years$1,910$1,635$1,394$1,185$1,004$444
16 years$1,772$1,500$1,264$1,061$887$367
17 years$1,651$1,381$1,150$953$787$304
18 years$1,543$1,277$1,050$859$699$252
19 years$1,446$1,183$961$776$623$210
20 years$1,359$1,099$882$703$557$175
21 years$1,281$1,024$811$638$498$145
22 years$1,210$956$748$580$447$121
23 years$1,145$894$690$528$401$101
24 years$1,086$838$639$482$360$84
25 years$1,031$786$591$440$324$70
26 years$981$739$549$402$292$59
27 years$935$695$509$368$263$49
28 years$892$655$474$337$238$41
29 years$852$618$441$309$215$34
30 years$814$584$410$284$194$29
31 years$779$552$383$261$175$24
32 years$747$522$357$240$159$20
33 years$716$494$333$220$144$17
34 years$688$469$311$203$130$14
35 years$661$444$291$187$118$12
36 years$635$422$272$172$107$10
37 years$611$401$255$158$97$8
38 years$589$381$239$146$88$7
39 years$567$362$224$135$79$6
40 years$547$345$210$124$72$5
41 years$528$328$197$115$65$4
42 years$509$312$184$106$59$3
43 years$492$298$173$98$54$3
44 years$475$284$162$90$49$2
45 years$459$270$153$83$44$2
46 years$444$258$143$77$40$2
47 years$430$246$135$71$37$1
48 years$416$235$126$66$33$1
49 years$403$224$119$61$30$1
50 years$391$214$112$56$27$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $400,000, adding $2,071 every year, while hoping to spend $24,837 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: 49/24/27 Blend
41$400,000$400,000$400,000$400,000
42$442,936$421,736$415,536$461,155
43$461,689$415,975$403,030$468,363
44$481,523$409,099$389,273$473,562
45$502,521$401,027$374,196$478,722
46$524,775$391,674$357,729$483,851
47$548,385$380,950$339,796$488,961
48$573,461$368,757$320,320$494,064
49$600,123$354,995$299,219$499,177
50$628,502$339,556$276,409$504,320
51$658,741$322,326$251,801$509,517
52$690,997$303,185$225,301$514,797
53$725,443$282,006$196,813$520,193
54$762,268$258,653$166,236$525,747
55$801,678$232,986$133,463$531,503
56$843,900$204,853$98,385$537,516
57$889,183$174,096$60,886$543,849
58$937,799$140,547$20,846$550,572
59$990,049$104,028$0$557,769
60$1,046,261$64,352$0$571,837
61$1,106,797$21,322$0$593,398
62$1,172,052$0$0$616,602
63$1,242,463$0$0$648,301
64$1,318,508$0$0$688,651
65$1,400,713$0$0$732,306
66$1,489,656$0$0$779,575
67$1,585,972$0$0$830,803
68$1,690,360$0$0$886,364
69$1,803,588$0$0$946,673
70$1,926,501$0$0$1,012,186
71$2,060,028$0$0$1,083,404
72$2,205,191$0$0$1,160,876
73$2,363,114$0$0$1,245,210
74$2,535,035$0$0$1,337,073
75$2,722,314$0$0$1,437,199
76$2,926,451$0$0$1,546,395
77$3,149,092$0$0$1,665,551
78$3,392,054$0$0$1,795,647
79$3,657,333$0$0$1,937,758
80$3,947,128$0$0$2,093,072
81$4,263,860$0$0$2,262,895
82$4,610,193$0$0$2,448,663
83$4,989,062$0$0$2,651,961
84$5,403,698$0$0$2,874,532
85$5,857,657$0$0$3,118,296
86$6,354,858$0$0$3,385,365
87$6,899,615$0$0$3,678,070
88$7,496,678$0$0$3,998,973
89$8,151,281$0$0$4,350,900
90$8,869,187$0$0$4,736,960
91$9,656,743$0$0$5,160,579
92$10,520,941$0$0$5,625,532
93$11,469,482$0$0$6,135,975
94$12,510,850$0$0$6,696,487
95$13,654,389$0$0$7,312,113
96$14,910,393$0$0$7,988,409
97$16,290,203$0$0$8,731,497
98$17,806,309$0$0$9,548,121
99$19,472,476$0$0$10,445,709
100$21,303,863$0$0$11,432,447