Can I retire at age 40 with 398,000?

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 $398,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.4%
1 years$32,866$32,574$32,288$32,009$31,737$30,907
2 years$16,271$15,968$15,674$15,389$15,113$14,282
3 years$10,739$10,435$10,142$9,860$9,588$8,783
4 years$7,974$7,671$7,381$7,104$6,838$6,065
5 years$6,316$6,014$5,728$5,456$5,198$4,459
6 years$5,210$4,911$4,629$4,363$4,113$3,408
7 years$4,421$4,124$3,847$3,587$3,345$2,675
8 years$3,829$3,535$3,262$3,009$2,775$2,139
9 years$3,369$3,078$2,810$2,563$2,337$1,734
10 years$3,002$2,713$2,450$2,210$1,991$1,421
11 years$2,701$2,415$2,157$1,923$1,713$1,175
12 years$2,451$2,168$1,914$1,687$1,484$977
13 years$2,239$1,959$1,710$1,489$1,294$817
14 years$2,058$1,781$1,536$1,322$1,134$687
15 years$1,901$1,627$1,387$1,179$999$579
16 years$1,763$1,493$1,258$1,056$883$489
17 years$1,642$1,375$1,144$948$783$415
18 years$1,535$1,270$1,045$855$696$352
19 years$1,439$1,177$956$772$620$300
20 years$1,353$1,094$878$699$554$255
21 years$1,275$1,019$807$635$496$218
22 years$1,204$951$744$577$444$186
23 years$1,139$890$687$526$399$159
24 years$1,080$833$635$479$359$136
25 years$1,026$782$589$438$323$116
26 years$976$735$546$400$291$100
27 years$930$692$507$366$262$85
28 years$887$652$471$336$236$73
29 years$847$615$438$308$214$63
30 years$810$581$408$283$193$54
31 years$776$549$381$260$174$46
32 years$743$520$355$238$158$40
33 years$713$492$332$219$143$34
34 years$684$466$310$202$129$29
35 years$657$442$290$186$117$25
36 years$632$420$271$171$106$21
37 years$608$399$254$158$96$18
38 years$586$379$238$145$87$16
39 years$564$360$223$134$79$14
40 years$544$343$209$124$72$12
41 years$525$326$196$114$65$10
42 years$507$311$184$105$59$9
43 years$489$296$172$97$54$7
44 years$473$282$162$90$49$6
45 years$457$269$152$83$44$5
46 years$442$257$143$76$40$5
47 years$428$245$134$71$36$4
48 years$414$234$126$65$33$3
49 years$401$223$118$60$30$3
50 years$389$213$111$56$27$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $398,000, adding $5,875 every year, while hoping to spend $25,128 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: 51/28/21 Blend
39$398,000$398,000$398,000$398,000
40$444,656$423,562$417,393$464,462
41$463,275$417,581$404,640$472,788
42$482,951$410,464$390,617$478,774
43$503,765$402,130$375,256$484,753
44$525,806$392,491$358,484$490,735
45$549,171$381,456$340,226$496,730
46$573,966$368,927$320,403$502,752
47$600,306$354,800$298,932$508,818
48$628,319$338,966$275,728$514,949
49$658,142$321,311$250,700$521,169
50$689,928$301,711$223,754$527,507
51$723,843$280,037$194,792$533,997
52$760,069$256,153$163,711$540,679
53$798,806$229,913$130,405$547,600
54$840,271$201,167$94,761$554,814
55$884,706$169,751$56,662$562,383
56$932,373$135,496$15,988$570,378
57$983,561$98,221$0$578,881
58$1,038,587$57,736$0$594,130
59$1,097,799$13,841$0$614,310
60$1,161,578$0$0$635,986
61$1,230,345$0$0$669,704
62$1,304,559$0$0$710,729
63$1,384,729$0$0$755,078
64$1,471,409$0$0$803,065
65$1,565,213$0$0$855,031
66$1,666,811$0$0$911,355
67$1,776,944$0$0$972,451
68$1,896,424$0$0$1,038,775
69$2,026,145$0$0$1,110,829
70$2,167,091$0$0$1,189,164
71$2,320,343$0$0$1,274,388
72$2,487,091$0$0$1,367,169
73$2,668,645$0$0$1,468,241
74$2,866,446$0$0$1,578,413
75$3,082,078$0$0$1,698,577
76$3,317,287$0$0$1,829,710
77$3,573,995$0$0$1,972,893
78$3,854,314$0$0$2,129,311
79$4,160,572$0$0$2,300,273
80$4,495,332$0$0$2,487,216
81$4,861,415$0$0$2,691,725
82$5,261,926$0$0$2,915,545
83$5,700,286$0$0$3,160,597
84$6,180,260$0$0$3,428,995
85$6,705,996$0$0$3,723,069
86$7,282,060$0$0$4,045,385
87$7,913,483$0$0$4,398,768
88$8,605,803$0$0$4,786,329
89$9,365,122$0$0$5,211,497
90$10,198,159$0$0$5,678,046
91$11,112,317$0$0$6,190,135
92$12,115,748$0$0$6,752,345
93$13,217,434$0$0$7,369,720
94$14,427,266$0$0$8,047,820
95$15,756,144$0$0$8,792,767
96$17,216,072$0$0$9,611,307
97$18,820,276$0$0$10,510,870
98$20,583,326$0$0$11,499,645
99$22,521,273$0$0$12,586,649
100$24,651,802$0$0$13,781,820