Can I retire at age 42 with 850,000?

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 $850,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15%
1 years$70,192$69,567$68,957$68,362$67,780$66,385
2 years$34,749$34,101$33,474$32,866$32,276$30,877
3 years$22,936$22,286$21,660$21,058$20,477$19,117
4 years$17,030$16,382$15,763$15,171$14,605$13,295
5 years$13,488$12,844$12,233$11,653$11,102$9,846
6 years$11,127$10,488$9,886$9,319$8,785$7,584
7 years$9,442$8,808$8,215$7,661$7,144$5,999
8 years$8,178$7,550$6,967$6,427$5,927$4,836
9 years$7,196$6,574$6,001$5,474$4,991$3,955
10 years$6,410$5,794$5,232$4,719$4,253$3,270
11 years$5,768$5,158$4,606$4,107$3,658$2,726
12 years$5,234$4,630$4,088$3,602$3,170$2,289
13 years$4,781$4,184$3,652$3,180$2,764$1,932
14 years$4,394$3,803$3,281$2,823$2,423$1,639
15 years$4,059$3,474$2,963$2,518$2,133$1,395
16 years$3,766$3,188$2,686$2,254$1,885$1,191
17 years$3,507$2,936$2,444$2,026$1,672$1,020
18 years$3,278$2,713$2,231$1,825$1,486$875
19 years$3,073$2,514$2,043$1,649$1,325$753
20 years$2,889$2,336$1,875$1,494$1,183$648
21 years$2,722$2,176$1,724$1,356$1,059$559
22 years$2,571$2,031$1,589$1,233$949$482
23 years$2,433$1,900$1,467$1,123$852$417
24 years$2,307$1,780$1,357$1,024$766$360
25 years$2,191$1,670$1,257$935$689$312
26 years$2,085$1,570$1,166$855$621$270
27 years$1,986$1,478$1,082$783$560$234
28 years$1,894$1,392$1,006$717$505$203
29 years$1,809$1,313$936$658$456$176
30 years$1,730$1,240$872$603$412$153
31 years$1,656$1,173$813$554$373$133
32 years$1,587$1,109$759$509$337$115
33 years$1,522$1,051$708$468$305$100
34 years$1,461$996$662$431$276$87
35 years$1,404$945$619$397$250$75
36 years$1,350$897$579$365$227$65
37 years$1,299$851$542$337$205$57
38 years$1,251$809$507$310$186$49
39 years$1,205$769$475$286$169$43
40 years$1,162$732$446$264$153$37
41 years$1,121$697$418$243$139$32
42 years$1,082$664$392$225$126$28
43 years$1,045$632$368$207$114$25
44 years$1,010$603$345$192$104$21
45 years$976$575$324$177$94$19
46 years$944$548$304$163$86$16
47 years$914$523$286$151$78$14
48 years$885$500$269$139$71$12
49 years$857$477$253$129$64$11
50 years$830$456$238$119$58$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $850,000, adding $5,611 every year, while hoping to spend $37,147 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: 75/17/8 Blend
41$850,000$850,000$850,000$850,000
42$942,488$897,438$884,263$1,011,611
43$999,097$901,888$874,361$1,062,339
44$1,060,236$905,311$862,883$1,112,640
45$1,126,327$907,618$849,737$1,166,701
46$1,197,834$908,714$834,825$1,224,880
47$1,275,269$908,496$818,047$1,287,574
48$1,359,192$906,859$799,298$1,355,217
49$1,450,222$903,687$778,466$1,428,293
50$1,549,038$898,860$755,438$1,507,330
51$1,656,385$892,250$730,090$1,592,914
52$1,773,087$883,720$702,299$1,685,688
53$1,900,046$873,127$671,930$1,786,364
54$2,038,257$860,317$638,846$1,895,724
55$2,188,814$845,128$602,903$2,014,633
56$2,352,922$827,388$563,949$2,144,042
57$2,531,906$806,916$521,827$2,285,002
58$2,727,224$783,518$476,372$2,438,670
59$2,940,483$756,992$427,412$2,606,323
60$3,173,448$727,121$374,766$2,789,368
61$3,428,067$693,677$318,248$2,989,358
62$3,706,481$656,418$257,661$3,208,004
63$4,011,049$615,089$192,799$3,447,193
64$4,344,367$569,421$123,450$3,709,005
65$4,709,297$519,126$49,389$3,995,736
66$5,108,986$463,904$0$4,309,915
67$5,546,902$403,435$0$4,656,861
68$6,026,865$337,383$0$5,041,784
69$6,553,081$265,390$0$5,463,876
70$7,130,183$187,081$0$5,926,899
71$7,763,272$102,059$0$6,435,000
72$8,457,970$9,904$0$6,992,748
73$9,220,467$0$0$7,605,181
74$10,057,581$0$0$8,294,655
75$10,976,824$0$0$9,053,845
76$11,986,472$0$0$9,887,736
77$13,095,639$0$0$10,803,862
78$14,314,368$0$0$11,810,521
79$15,653,720$0$0$12,916,856
80$17,125,884$0$0$14,132,940
81$18,744,286$0$0$15,469,869
82$20,523,720$0$0$16,939,868
83$22,480,482$0$0$18,556,409
84$24,632,530$0$0$20,334,329
85$26,999,646$0$0$22,289,980
86$29,603,628$0$0$24,441,377
87$32,468,492$0$0$26,808,367
88$35,620,698$0$0$29,412,820
89$39,089,403$0$0$32,278,832
90$42,906,730$0$0$35,432,954
91$47,108,077$0$0$38,904,439
92$51,732,444$0$0$42,725,521
93$56,822,805$0$0$46,931,717
94$62,426,514$0$0$51,562,164
95$68,595,746$0$0$56,659,984
96$75,387,994$0$0$62,272,693
97$82,866,609$0$0$68,452,651
98$91,101,398$0$0$75,257,551
99$100,169,280$0$0$82,750,966
100$110,155,016$0$0$91,002,950