Can I retire at age 40 with 1,230,000?

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 $1,230,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$101,572$100,667$99,785$98,923$98,082$96,378
2 years$50,283$49,347$48,439$47,559$46,706$44,994
3 years$33,189$32,249$31,343$30,472$29,632$27,967
4 years$24,644$23,706$22,810$21,953$21,134$19,527
5 years$19,518$18,586$17,701$16,862$16,066$14,523
6 years$16,102$15,177$14,305$13,485$12,712$11,235
7 years$13,663$12,745$11,888$11,087$10,338$8,926
8 years$11,834$10,925$10,082$9,300$8,577$7,230
9 years$10,413$9,512$8,683$7,922$7,223$5,941
10 years$9,276$8,385$7,570$6,829$6,154$4,936
11 years$8,347$7,464$6,665$5,943$5,293$4,136
12 years$7,573$6,700$5,915$5,213$4,587$3,491
13 years$6,919$6,055$5,285$4,602$4,000$2,963
14 years$6,359$5,503$4,748$4,085$3,506$2,526
15 years$5,873$5,027$4,287$3,643$3,087$2,163
16 years$5,449$4,613$3,887$3,262$2,728$1,857
17 years$5,076$4,248$3,537$2,931$2,419$1,599
18 years$4,744$3,925$3,229$2,641$2,151$1,380
19 years$4,447$3,638$2,956$2,387$1,917$1,194
20 years$4,180$3,381$2,713$2,162$1,712$1,034
21 years$3,939$3,149$2,495$1,962$1,532$897
22 years$3,721$2,939$2,300$1,784$1,374$779
23 years$3,521$2,749$2,123$1,625$1,233$678
24 years$3,339$2,576$1,964$1,482$1,108$590
25 years$3,171$2,417$1,819$1,353$997$514
26 years$3,017$2,272$1,687$1,237$898$448
27 years$2,874$2,138$1,566$1,132$810$390
28 years$2,741$2,015$1,456$1,038$731$341
29 years$2,618$1,901$1,355$951$660$297
30 years$2,504$1,795$1,262$873$596$260
31 years$2,397$1,697$1,177$802$539$227
32 years$2,297$1,606$1,098$737$488$198
33 years$2,203$1,520$1,025$678$441$173
34 years$2,115$1,441$958$624$400$151
35 years$2,032$1,367$895$574$362$132
36 years$1,954$1,297$838$529$328$116
37 years$1,880$1,232$784$487$297$101
38 years$1,810$1,171$734$449$269$89
39 years$1,744$1,113$688$414$244$78
40 years$1,682$1,059$645$382$222$68
41 years$1,622$1,008$605$352$201$59
42 years$1,566$960$567$325$182$52
43 years$1,512$915$532$300$166$46
44 years$1,461$872$500$277$150$40
45 years$1,413$832$469$256$136$35
46 years$1,366$793$441$236$124$31
47 years$1,322$757$414$218$112$27
48 years$1,280$723$389$202$102$23
49 years$1,240$690$366$187$93$20
50 years$1,201$659$344$172$84$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,230,000, adding $2,547 every year, while hoping to spend $36,107 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: 48/43/9 Blend
39$1,230,000$1,230,000$1,230,000$1,230,000
40$1,358,087$1,292,897$1,273,832$1,419,855
41$1,458,195$1,317,832$1,278,088$1,487,448
42$1,567,303$1,342,778$1,281,276$1,556,800
43$1,686,292$1,367,698$1,283,323$1,631,262
44$1,816,130$1,392,551$1,284,151$1,711,323
45$1,957,883$1,417,295$1,283,678$1,797,519
46$2,112,726$1,441,880$1,281,820$1,890,442
47$2,281,949$1,466,258$1,278,486$1,990,743
48$2,466,975$1,490,372$1,273,582$2,099,142
49$2,669,370$1,514,164$1,267,011$2,216,431
50$2,890,859$1,537,571$1,258,669$2,343,486
51$3,133,340$1,560,525$1,248,448$2,481,268
52$3,398,903$1,582,954$1,236,234$2,630,842
53$3,689,852$1,604,779$1,221,908$2,793,379
54$4,008,722$1,625,918$1,205,347$2,970,172
55$4,358,306$1,646,282$1,186,420$3,162,645
56$4,741,679$1,665,776$1,164,991$3,372,370
57$5,162,229$1,684,298$1,140,917$3,601,080
58$5,623,687$1,701,739$1,114,049$3,850,687
59$6,130,164$1,717,985$1,084,230$4,123,297
60$6,686,187$1,732,913$1,051,298$4,421,236
61$7,296,743$1,746,390$1,015,081$4,747,065
62$7,967,325$1,758,277$975,400$5,103,611
63$8,703,985$1,768,426$932,070$5,493,992
64$9,513,390$1,776,678$884,893$5,921,644
65$10,402,885$1,782,864$833,666$6,390,357
66$11,380,561$1,786,806$778,176$6,904,312
67$12,455,333$1,788,314$718,199$7,468,116
68$13,637,020$1,787,185$653,502$8,086,852
69$14,936,444$1,783,205$583,842$8,766,125
70$16,365,525$1,776,146$508,965$9,512,114
71$17,937,398$1,765,766$428,604$10,331,632
72$19,666,534$1,751,810$342,483$11,232,194
73$21,568,876$1,734,004$250,312$12,222,083
74$23,661,992$1,712,061$151,789$13,310,435
75$25,965,239$1,685,676$46,597$14,507,320
76$28,499,943$1,654,523$0$15,823,843
77$31,289,603$1,618,261$0$17,278,555
78$34,360,113$1,576,527$0$18,883,832
79$37,740,003$1,528,934$0$20,650,115
80$41,460,709$1,475,078$0$22,593,848
81$45,556,870$1,414,526$0$24,733,159
82$50,066,655$1,346,822$0$27,088,033
83$55,032,123$1,271,485$0$29,680,499
84$60,499,617$1,188,005$0$32,534,840
85$66,520,203$1,095,842$0$35,677,825
86$73,150,151$994,427$0$39,138,963
87$80,451,469$883,156$0$42,950,779
88$88,492,481$761,392$0$47,149,128
89$97,348,477$628,464$0$51,773,532
90$107,102,423$483,659$0$56,867,555
91$117,845,739$326,228$0$62,479,217
92$129,679,169$155,377$0$68,661,448
93$142,713,722$0$0$75,472,591
94$157,071,730$0$0$82,991,023
95$172,887,992$0$0$91,354,244
96$190,311,054$0$0$100,567,304
97$209,504,606$0$0$110,716,787
98$230,649,027$0$0$121,898,103
99$253,943,090$0$0$134,216,391
100$279,605,836$0$0$147,787,512