Can I retire at age 40 with 408,000?

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 $408,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$33,692$33,392$33,099$32,814$32,534$32,022
2 years$16,679$16,369$16,068$15,776$15,493$14,977
3 years$11,009$10,697$10,397$10,108$9,829$9,328
4 years$8,175$7,864$7,566$7,282$7,010$6,526
5 years$6,474$6,165$5,872$5,593$5,329$4,864
6 years$5,341$5,034$4,745$4,473$4,217$3,771
7 years$4,532$4,228$3,943$3,677$3,429$3,003
8 years$3,925$3,624$3,344$3,085$2,845$2,438
9 years$3,454$3,155$2,880$2,628$2,396$2,008
10 years$3,077$2,781$2,511$2,265$2,041$1,672
11 years$2,769$2,476$2,211$1,971$1,756$1,405
12 years$2,512$2,222$1,962$1,729$1,521$1,189
13 years$2,295$2,008$1,753$1,527$1,327$1,012
14 years$2,109$1,826$1,575$1,355$1,163$865
15 years$1,948$1,668$1,422$1,209$1,024$742
16 years$1,808$1,530$1,289$1,082$905$639
17 years$1,684$1,409$1,173$972$802$552
18 years$1,573$1,302$1,071$876$713$478
19 years$1,475$1,207$980$792$636$415
20 years$1,387$1,121$900$717$568$360
21 years$1,307$1,045$828$651$508$313
22 years$1,234$975$763$592$456$273
23 years$1,168$912$704$539$409$238
24 years$1,108$854$651$491$368$208
25 years$1,052$802$603$449$331$182
26 years$1,001$754$560$410$298$159
27 years$953$709$520$376$269$139
28 years$909$668$483$344$242$122
29 years$869$630$449$316$219$107
30 years$831$595$419$290$198$93
31 years$795$563$390$266$179$82
32 years$762$533$364$244$162$72
33 years$731$504$340$225$146$63
34 years$701$478$318$207$133$55
35 years$674$453$297$190$120$48
36 years$648$430$278$175$109$42
37 years$624$409$260$162$99$37
38 years$600$388$244$149$89$33
39 years$579$369$228$137$81$29
40 years$558$351$214$127$74$25
41 years$538$335$201$117$67$22
42 years$519$319$188$108$61$19
43 years$502$304$177$100$55$17
44 years$485$289$166$92$50$15
45 years$469$276$156$85$45$13
46 years$453$263$146$78$41$12
47 years$439$251$137$72$37$10
48 years$425$240$129$67$34$9
49 years$411$229$121$62$31$8
50 years$398$219$114$57$28$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $408,000, adding $4,732 every year, while hoping to spend $21,215 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: 54/41/5 Blend
39$408,000$408,000$408,000$408,000
40$454,497$432,873$426,549$478,303
41$478,283$431,511$418,266$493,554
42$503,784$429,372$408,994$507,384
43$531,153$426,394$398,678$521,914
44$560,557$422,513$387,260$537,211
45$592,180$417,663$374,680$553,352
46$626,224$411,769$360,873$570,425
47$662,909$404,757$345,773$588,523
48$702,480$396,544$329,310$607,754
49$745,204$387,046$311,413$628,236
50$791,375$376,170$292,005$650,101
51$841,315$363,822$271,007$673,495
52$895,379$349,900$248,336$698,583
53$953,957$334,295$223,905$725,545
54$1,017,479$316,894$197,624$754,582
55$1,086,416$297,576$169,398$785,920
56$1,161,287$276,213$139,130$819,807
57$1,242,663$252,672$106,715$856,519
58$1,331,171$226,809$72,046$896,363
59$1,427,502$198,475$35,012$939,681
60$1,532,416$167,509$0$986,848
61$1,646,750$133,744$0$1,038,527
62$1,771,424$97,003$0$1,096,949
63$1,907,451$57,098$0$1,160,767
64$2,055,945$13,830$0$1,230,560
65$2,218,135$0$0$1,306,967
66$2,395,372$0$0$1,405,592
67$2,589,143$0$0$1,520,276
68$2,801,086$0$0$1,645,754
69$3,033,005$0$0$1,783,099
70$3,286,884$0$0$1,933,491
71$3,564,912$0$0$2,098,232
72$3,869,495$0$0$2,278,754
73$4,203,287$0$0$2,476,633
74$4,569,207$0$0$2,693,608
75$4,970,472$0$0$2,931,592
76$5,410,625$0$0$3,192,692
77$5,893,568$0$0$3,479,229
78$6,423,600$0$0$3,793,761
79$7,005,455$0$0$4,139,105
80$7,644,349$0$0$4,518,362
81$8,346,026$0$0$4,934,951
82$9,116,817$0$0$5,392,637
83$9,963,692$0$0$5,895,569
84$10,894,332$0$0$6,448,315
85$11,917,200$0$0$7,055,911
86$13,041,616$0$0$7,723,902
87$14,277,853$0$0$8,458,399
88$15,637,224$0$0$9,266,135
89$17,132,197$0$0$10,154,526
90$18,776,506$0$0$11,131,746
91$20,585,285$0$0$12,206,798
92$22,575,207$0$0$13,389,603
93$24,764,643$0$0$14,691,093
94$27,173,834$0$0$16,123,310
95$29,825,084$0$0$17,699,526
96$32,742,966$0$0$19,434,362
97$35,954,557$0$0$21,343,931
98$39,489,693$0$0$23,445,984
99$43,381,247$0$0$25,760,084
100$47,665,443$0$0$28,307,783