Can I retire at age 40 with 423,000?

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 $423,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.4%
1 years$34,931$34,620$34,316$34,020$33,731$32,586
2 years$17,293$16,970$16,658$16,356$16,062$14,920
3 years$11,414$11,090$10,779$10,479$10,191$9,087
4 years$8,475$8,153$7,844$7,550$7,268$6,212
5 years$6,712$6,392$6,088$5,799$5,525$4,519
6 years$5,537$5,219$4,920$4,637$4,372$3,417
7 years$4,699$4,383$4,088$3,813$3,555$2,651
8 years$4,070$3,757$3,467$3,198$2,950$2,095
9 years$3,581$3,271$2,986$2,724$2,484$1,678
10 years$3,190$2,884$2,604$2,348$2,116$1,358
11 years$2,871$2,567$2,292$2,044$1,820$1,108
12 years$2,604$2,304$2,034$1,793$1,577$910
13 years$2,379$2,082$1,817$1,583$1,375$751
14 years$2,187$1,893$1,633$1,405$1,206$622
15 years$2,020$1,729$1,474$1,253$1,062$517
16 years$1,874$1,586$1,337$1,122$938$431
17 years$1,745$1,461$1,216$1,008$832$360
18 years$1,631$1,350$1,110$908$740$301
19 years$1,529$1,251$1,016$821$659$252
20 years$1,438$1,163$933$743$589$212
21 years$1,355$1,083$858$675$527$178
22 years$1,280$1,011$791$613$472$150
23 years$1,211$945$730$559$424$126
24 years$1,148$886$675$510$381$106
25 years$1,091$831$625$465$343$89
26 years$1,037$781$580$425$309$75
27 years$988$735$539$389$279$63
28 years$943$693$501$357$251$53
29 years$900$654$466$327$227$45
30 years$861$617$434$300$205$38
31 years$824$584$405$276$185$32
32 years$790$552$378$253$168$27
33 years$758$523$353$233$152$23
34 years$727$496$329$214$137$19
35 years$699$470$308$197$124$16
36 years$672$446$288$182$113$14
37 years$646$424$270$168$102$12
38 years$622$403$253$154$93$10
39 years$600$383$237$142$84$8
40 years$578$364$222$131$76$7
41 years$558$347$208$121$69$6
42 years$539$330$195$112$63$5
43 years$520$315$183$103$57$4
44 years$503$300$172$95$52$4
45 years$486$286$161$88$47$3
46 years$470$273$152$81$43$3
47 years$455$260$142$75$39$2
48 years$440$249$134$69$35$2
49 years$426$237$126$64$32$2
50 years$413$227$118$59$29$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $423,000, adding $4,590 every year, while hoping to spend $27,993 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: 67/20/13 Blend
39$423,000$423,000$423,000$423,000
40$470,881$448,462$441,905$500,739
41$489,126$440,652$426,925$513,407
42$508,294$431,521$410,504$523,515
43$528,450$420,976$392,566$533,854
44$549,663$408,915$373,028$544,444
45$572,011$395,233$351,806$555,307
46$595,576$379,819$328,811$566,470
47$620,448$362,555$303,951$577,963
48$646,728$343,314$277,127$589,819
49$674,523$321,964$248,239$602,076
50$703,950$298,367$217,181$614,779
51$735,138$272,372$183,842$627,976
52$768,229$243,825$148,107$641,723
53$803,375$212,559$109,855$656,083
54$840,744$178,399$68,961$671,126
55$880,521$141,162$25,292$686,931
56$922,907$100,652$0$703,589
57$968,123$56,663$0$724,155
58$1,016,409$8,977$0$749,722
59$1,068,032$0$0$776,926
60$1,123,280$0$0$815,313
61$1,182,472$0$0$858,575
62$1,245,957$0$0$904,992
63$1,314,118$0$0$954,847
64$1,387,375$0$0$1,008,450
65$1,466,190$0$0$1,066,141
66$1,551,069$0$0$1,128,294
67$1,642,568$0$0$1,195,319
68$1,741,299$0$0$1,267,666
69$1,847,933$0$0$1,345,831
70$1,963,208$0$0$1,430,358
71$2,087,935$0$0$1,521,845
72$2,223,005$0$0$1,620,950
73$2,369,398$0$0$1,728,396
74$2,528,193$0$0$1,844,978
75$2,700,573$0$0$1,971,571
76$2,887,843$0$0$2,109,135
77$3,091,437$0$0$2,258,729
78$3,312,932$0$0$2,421,518
79$3,554,064$0$0$2,598,782
80$3,816,742$0$0$2,791,930
81$4,103,069$0$0$3,002,514
82$4,415,357$0$0$3,232,240
83$4,756,152$0$0$3,482,987
84$5,128,257$0$0$3,756,824
85$5,534,757$0$0$4,056,027
86$5,979,047$0$0$4,383,103
87$6,464,866$0$0$4,740,812
88$6,996,332$0$0$5,132,193
89$7,577,977$0$0$5,560,590
90$8,214,793$0$0$6,029,688
91$8,912,275$0$0$6,543,545
92$9,676,477$0$0$7,106,629
93$10,514,065$0$0$7,723,859
94$11,432,380$0$0$8,400,657
95$12,439,509$0$0$9,142,990
96$13,544,357$0$0$9,957,433
97$14,756,734$0$0$10,851,228
98$16,087,445$0$0$11,832,351
99$17,548,393$0$0$12,909,589
100$19,152,689$0$0$14,092,622