Can I retire at age 40 with 416,000?

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 $416,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$34,353$34,047$33,748$33,457$33,172$32,704
2 years$17,006$16,690$16,383$16,085$15,796$15,325
3 years$11,225$10,907$10,601$10,306$10,022$9,563
4 years$8,335$8,018$7,715$7,425$7,148$6,704
5 years$6,601$6,286$5,987$5,703$5,434$5,007
6 years$5,446$5,133$4,838$4,561$4,299$3,890
7 years$4,621$4,311$4,021$3,750$3,497$3,105
8 years$4,002$3,695$3,410$3,145$2,901$2,526
9 years$3,522$3,217$2,937$2,679$2,443$2,086
10 years$3,137$2,836$2,560$2,310$2,081$1,741
11 years$2,823$2,525$2,254$2,010$1,790$1,467
12 years$2,561$2,266$2,001$1,763$1,551$1,244
13 years$2,340$2,048$1,787$1,556$1,353$1,062
14 years$2,151$1,861$1,606$1,382$1,186$910
15 years$1,986$1,700$1,450$1,232$1,044$783
16 years$1,843$1,560$1,315$1,103$923$676
17 years$1,717$1,437$1,196$991$818$586
18 years$1,604$1,328$1,092$893$727$509
19 years$1,504$1,230$1,000$807$648$442
20 years$1,414$1,143$917$731$579$386
21 years$1,332$1,065$844$664$518$336
22 years$1,258$994$778$603$465$294
23 years$1,191$930$718$549$417$257
24 years$1,129$871$664$501$375$225
25 years$1,073$818$615$458$337$197
26 years$1,020$768$570$418$304$173
27 years$972$723$530$383$274$152
28 years$927$681$492$351$247$134
29 years$886$643$458$322$223$117
30 years$847$607$427$295$202$103
31 years$811$574$398$271$182$91
32 years$777$543$371$249$165$80
33 years$745$514$347$229$149$70
34 years$715$487$324$211$135$62
35 years$687$462$303$194$122$54
36 years$661$439$283$179$111$48
37 years$636$417$265$165$101$42
38 years$612$396$248$152$91$37
39 years$590$377$233$140$83$33
40 years$569$358$218$129$75$29
41 years$549$341$204$119$68$25
42 years$530$325$192$110$62$22
43 years$512$309$180$102$56$20
44 years$494$295$169$94$51$17
45 years$478$281$159$87$46$15
46 years$462$268$149$80$42$14
47 years$447$256$140$74$38$12
48 years$433$244$132$68$35$11
49 years$419$233$124$63$31$9
50 years$406$223$116$58$29$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $416,000, adding $5,003 every year, while hoping to spend $25,463 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: 61/33/6 Blend
39$416,000$416,000$416,000$416,000
40$463,593$441,545$435,097$491,051
41$483,787$436,088$422,580$504,554
42$505,187$429,510$408,790$515,876
43$527,890$421,730$393,659$527,577
44$552,001$412,661$377,112$539,692
45$577,634$402,210$359,075$552,262
46$604,916$390,282$339,467$565,334
47$633,983$376,772$318,205$578,959
48$664,988$361,572$295,204$593,196
49$698,095$344,568$270,371$608,110
50$733,486$325,636$243,613$623,775
51$771,357$304,649$214,831$640,274
52$811,928$281,469$183,920$657,699
53$855,437$255,953$150,774$676,155
54$902,146$227,949$115,279$695,758
55$952,342$197,295$77,317$716,638
56$1,006,340$163,822$36,767$738,940
57$1,064,487$127,350$0$762,829
58$1,127,163$87,688$0$788,901
59$1,194,787$44,638$0$819,483
60$1,267,816$0$0$852,453
61$1,346,757$0$0$888,804
62$1,432,162$0$0$945,695
63$1,524,641$0$0$1,007,325
64$1,624,866$0$0$1,074,145
65$1,733,571$0$0$1,146,648
66$1,851,568$0$0$1,225,379
67$1,979,748$0$0$1,310,936
68$2,119,090$0$0$1,403,979
69$2,270,674$0$0$1,505,230
70$2,435,686$0$0$1,615,487
71$2,615,431$0$0$1,735,628
72$2,811,346$0$0$1,866,617
73$3,025,012$0$0$2,009,516
74$3,258,170$0$0$2,165,495
75$3,512,735$0$0$2,335,840
76$3,790,816$0$0$2,521,969
77$4,094,735$0$0$2,725,440
78$4,427,046$0$0$2,947,973
79$4,790,565$0$0$3,191,456
80$5,188,390$0$0$3,457,973
81$5,623,932$0$0$3,749,815
82$6,100,949$0$0$4,069,508
83$6,623,578$0$0$4,419,832
84$7,196,375$0$0$4,803,849
85$7,824,359$0$0$5,224,931
86$8,513,057$0$0$5,686,793
87$9,268,557$0$0$6,193,525
88$10,097,564$0$0$6,749,635
89$11,007,463$0$0$7,360,086
90$12,006,390$0$0$8,030,345
91$13,103,307$0$0$8,766,436
92$14,308,085$0$0$9,574,993
93$15,631,601$0$0$10,463,327
94$17,085,834$0$0$11,439,488
95$18,683,983$0$0$12,512,348
96$20,440,588$0$0$13,691,680
97$22,371,668$0$0$14,988,251
98$24,494,872$0$0$16,413,922
99$26,829,644$0$0$17,981,764
100$29,397,405$0$0$19,706,174