Can I retire at age 40 with 1,240,000?

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 $1,240,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17%
1 years$102,398$101,486$100,596$99,727$98,879$96,061
2 years$50,692$49,748$48,833$47,946$47,085$44,268
3 years$33,459$32,511$31,598$30,719$29,873$27,144
4 years$24,844$23,899$22,995$22,132$21,306$18,687
5 years$19,677$18,737$17,845$16,999$16,196$13,695
6 years$16,233$15,300$14,422$13,594$12,815$10,434
7 years$13,774$12,849$11,985$11,177$10,422$8,160
8 years$11,930$11,014$10,164$9,376$8,646$6,502
9 years$10,497$9,590$8,754$7,986$7,282$5,254
10 years$9,352$8,453$7,632$6,884$6,204$4,290
11 years$8,415$7,525$6,719$5,991$5,336$3,532
12 years$7,635$6,754$5,963$5,255$4,624$2,927
13 years$6,975$6,104$5,328$4,640$4,032$2,438
14 years$6,410$5,548$4,787$4,118$3,535$2,039
15 years$5,921$5,068$4,322$3,673$3,112$1,712
16 years$5,494$4,650$3,918$3,289$2,750$1,441
17 years$5,117$4,283$3,566$2,955$2,439$1,216
18 years$4,782$3,957$3,255$2,663$2,168$1,028
19 years$4,483$3,668$2,980$2,406$1,933$871
20 years$4,214$3,408$2,735$2,179$1,726$739
21 years$3,971$3,174$2,515$1,978$1,545$627
22 years$3,751$2,963$2,318$1,798$1,385$533
23 years$3,550$2,771$2,141$1,638$1,243$454
24 years$3,366$2,597$1,980$1,494$1,117$386
25 years$3,197$2,437$1,834$1,364$1,005$329
26 years$3,041$2,290$1,701$1,247$906$280
27 years$2,897$2,155$1,579$1,142$817$239
28 years$2,764$2,031$1,468$1,046$737$204
29 years$2,640$1,916$1,366$959$665$174
30 years$2,524$1,810$1,272$880$601$148
31 years$2,416$1,711$1,186$809$543$127
32 years$2,315$1,619$1,107$743$492$108
33 years$2,221$1,533$1,033$683$445$92
34 years$2,132$1,453$966$629$403$79
35 years$2,048$1,378$903$579$365$67
36 years$1,969$1,308$844$533$331$58
37 years$1,895$1,242$790$491$300$49
38 years$1,825$1,180$740$453$272$42
39 years$1,758$1,123$693$417$246$36
40 years$1,695$1,068$650$385$223$31
41 years$1,635$1,017$609$355$203$26
42 years$1,579$968$572$328$184$22
43 years$1,525$922$536$303$167$19
44 years$1,473$879$504$279$152$16
45 years$1,424$839$473$258$138$14
46 years$1,378$800$444$238$125$12
47 years$1,333$763$417$220$113$10
48 years$1,290$729$392$203$103$9
49 years$1,250$696$369$188$94$7
50 years$1,211$665$346$174$85$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,240,000, adding $2,029 every year, while hoping to spend $45,169 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: 58/24/18 Blend
39$1,240,000$1,240,000$1,240,000$1,240,000
40$1,368,573$1,302,853$1,283,633$1,441,376
41$1,460,108$1,318,633$1,278,575$1,506,773
42$1,559,466$1,333,673$1,271,834$1,572,927
43$1,667,396$1,347,888$1,263,306$1,644,025
44$1,784,725$1,361,189$1,252,881$1,720,550
45$1,912,360$1,373,480$1,240,445$1,803,038
46$2,051,299$1,384,660$1,225,879$1,892,079
47$2,202,643$1,394,619$1,209,057$1,988,326
48$2,367,601$1,403,243$1,189,848$2,092,498
49$2,547,503$1,410,409$1,168,115$2,205,390
50$2,743,814$1,415,986$1,143,714$2,327,879
51$2,958,149$1,419,834$1,116,493$2,460,932
52$3,192,281$1,421,807$1,086,297$2,605,618
53$3,448,165$1,421,747$1,052,959$2,763,116
54$3,727,953$1,419,488$1,016,309$2,934,727
55$4,034,014$1,414,852$976,164$3,121,888
56$4,368,956$1,407,653$932,338$3,326,184
57$4,735,651$1,397,689$884,634$3,549,364
58$5,137,263$1,384,752$832,844$3,793,358
59$5,577,274$1,368,615$776,755$4,060,296
60$6,059,521$1,349,042$716,141$4,352,529
61$6,588,228$1,325,781$650,768$4,672,649
62$7,168,048$1,298,565$580,389$5,023,519
63$7,804,106$1,267,112$504,749$5,408,296
64$8,502,047$1,231,122$423,581$5,830,462
65$9,268,089$1,190,280$336,603$6,293,860
66$10,109,080$1,144,249$243,525$6,802,729
67$11,032,565$1,092,676$144,042$7,361,745
68$12,046,854$1,035,185$37,835$7,976,068
69$13,161,104$971,380$0$8,651,387
70$14,385,399$900,840$0$9,408,481
71$15,730,851$823,123$0$10,248,468
72$17,209,701$737,759$0$11,171,780
73$18,835,434$644,252$0$12,186,910
74$20,622,908$542,080$0$13,303,223
75$22,588,491$430,689$0$14,531,042
76$24,750,218$309,493$0$15,881,745
77$27,127,958$177,877$0$17,367,877
78$29,743,605$35,188$0$19,003,266
79$32,621,278$0$0$20,803,155
80$35,787,555$0$0$22,815,844
81$39,271,717$0$0$25,040,950
82$43,106,029$0$0$27,489,801
83$47,326,043$0$0$30,185,116
84$51,970,928$0$0$33,151,932
85$57,083,847$0$0$36,417,832
86$62,712,358$0$0$40,013,213
87$68,908,865$0$0$43,971,566
88$75,731,110$0$0$48,329,798
89$83,242,722$0$0$53,128,573
90$91,513,809$0$0$58,412,700
91$100,621,627$0$0$64,231,557
92$110,651,306$0$0$70,639,550
93$121,696,649$0$0$77,696,635
94$133,861,023$0$0$85,468,876
95$147,258,330$0$0$94,029,072
96$162,014,081$0$0$103,457,443
97$178,266,585$0$0$113,842,385
98$196,168,246$0$0$125,281,309
99$215,887,009$0$0$137,881,553
100$237,607,937$0$0$151,761,401