Can I retire at age 40 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%18.2%
1 years$33,032$32,737$32,450$32,170$31,897$30,839
2 years$16,352$16,048$15,753$15,466$15,189$14,133
3 years$10,793$10,487$10,193$9,909$9,636$8,616
4 years$8,014$7,709$7,418$7,139$6,873$5,896
5 years$6,347$6,044$5,757$5,484$5,225$4,294
6 years$5,236$4,936$4,652$4,385$4,134$3,250
7 years$4,443$4,145$3,866$3,605$3,362$2,524
8 years$3,849$3,553$3,279$3,024$2,789$1,997
9 years$3,386$3,093$2,824$2,576$2,349$1,602
10 years$3,017$2,727$2,462$2,221$2,001$1,298
11 years$2,714$2,427$2,167$1,933$1,721$1,061
12 years$2,463$2,179$1,924$1,695$1,492$872
13 years$2,250$1,969$1,719$1,497$1,301$720
14 years$2,068$1,790$1,544$1,329$1,140$598
15 years$1,910$1,635$1,394$1,185$1,004$497
16 years$1,772$1,500$1,264$1,061$887$415
17 years$1,651$1,381$1,150$953$787$347
18 years$1,543$1,277$1,050$859$699$291
19 years$1,446$1,183$961$776$623$244
20 years$1,359$1,099$882$703$557$205
21 years$1,281$1,024$811$638$498$173
22 years$1,210$956$748$580$447$145
23 years$1,145$894$690$528$401$123
24 years$1,086$838$639$482$360$103
25 years$1,031$786$591$440$324$87
26 years$981$739$549$402$292$74
27 years$935$695$509$368$263$62
28 years$892$655$474$337$238$52
29 years$852$618$441$309$215$44
30 years$814$584$410$284$194$37
31 years$779$552$383$261$175$32
32 years$747$522$357$240$159$27
33 years$716$494$333$220$144$23
34 years$688$469$311$203$130$19
35 years$661$444$291$187$118$16
36 years$635$422$272$172$107$14
37 years$611$401$255$158$97$12
38 years$589$381$239$146$88$10
39 years$567$362$224$135$79$8
40 years$547$345$210$124$72$7
41 years$528$328$197$115$65$6
42 years$509$312$184$106$59$5
43 years$492$298$173$98$54$4
44 years$475$284$162$90$49$4
45 years$459$270$153$83$44$3
46 years$444$258$143$77$40$3
47 years$430$246$135$71$37$2
48 years$416$235$126$66$33$2
49 years$403$224$119$61$30$2
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 40 starting with $400,000, adding $3,021 every year, while hoping to spend $23,924 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: 63/19/18 Blend
39$400,000$400,000$400,000$400,000
40$443,916$422,716$416,516$469,681
41$463,741$417,974$405,015$482,634
42$484,785$412,198$392,326$493,797
43$507,150$405,312$378,385$505,423
44$530,942$397,235$363,124$517,560
45$556,281$387,883$346,471$530,260
46$583,297$377,164$328,353$543,582
47$612,132$364,984$308,692$557,590
48$642,943$351,242$287,406$572,359
49$675,900$335,829$264,411$587,969
50$711,191$318,634$239,618$604,513
51$749,021$299,536$212,935$622,091
52$789,617$278,410$184,264$640,818
53$833,226$255,120$153,505$660,820
54$880,120$229,525$120,552$682,237
55$930,597$201,476$85,295$705,228
56$984,984$170,816$47,619$729,965
57$1,043,643$137,376$7,404$756,645
58$1,106,967$100,980$0$785,483
59$1,175,392$61,443$0$823,539
60$1,249,396$18,566$0$866,222
61$1,329,502$0$0$912,430
62$1,416,288$0$0$968,345
63$1,510,388$0$0$1,033,205
64$1,612,500$0$0$1,103,612
65$1,723,391$0$0$1,180,099
66$1,843,905$0$0$1,263,251
67$1,974,971$0$0$1,353,712
68$2,117,609$0$0$1,452,191
69$2,272,944$0$0$1,559,468
70$2,442,213$0$0$1,676,400
71$2,626,775$0$0$1,803,932
72$2,828,130$0$0$1,943,103
73$3,047,926$0$0$2,095,057
74$3,287,978$0$0$2,261,054
75$3,550,284$0$0$2,442,481
76$3,837,044$0$0$2,640,863
77$4,150,679$0$0$2,857,881
78$4,493,855$0$0$3,095,386
79$4,869,510$0$0$3,355,416
80$5,280,876$0$0$3,640,214
81$5,731,513$0$0$3,952,252
82$6,225,343$0$0$4,294,250
83$6,766,684$0$0$4,669,208
84$7,360,292$0$0$5,080,424
85$8,011,406$0$0$5,531,536
86$8,725,794$0$0$6,026,547
87$9,509,813$0$0$6,569,870
88$10,370,462$0$0$7,166,363
89$11,315,452$0$0$7,821,379
90$12,353,279$0$0$8,540,815
91$13,493,299$0$0$9,331,164
92$14,745,820$0$0$10,199,584
93$16,122,199$0$0$11,153,957
94$17,634,947$0$0$12,202,967
95$19,297,845$0$0$13,356,182
96$21,126,080$0$0$14,624,144
97$23,136,379$0$0$16,018,465
98$25,347,176$0$0$17,551,940
99$27,778,777$0$0$19,238,667
100$30,453,556$0$0$21,094,178