Can I retire at age 40 with 425,000?

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 $425,000?

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$35,096$34,783$34,478$34,181$33,890$33,411
2 years$17,374$17,051$16,737$16,433$16,138$15,657
3 years$11,468$11,143$10,830$10,529$10,239$9,769
4 years$8,515$8,191$7,881$7,585$7,302$6,849
5 years$6,744$6,422$6,116$5,826$5,551$5,115
6 years$5,564$5,244$4,943$4,659$4,392$3,974
7 years$4,721$4,404$4,108$3,831$3,572$3,172
8 years$4,089$3,775$3,484$3,213$2,963$2,581
9 years$3,598$3,287$3,000$2,737$2,496$2,131
10 years$3,205$2,897$2,616$2,359$2,126$1,779
11 years$2,884$2,579$2,303$2,053$1,829$1,498
12 years$2,617$2,315$2,044$1,801$1,585$1,271
13 years$2,391$2,092$1,826$1,590$1,382$1,085
14 years$2,197$1,902$1,641$1,412$1,211$930
15 years$2,029$1,737$1,481$1,259$1,067$800
16 years$1,883$1,594$1,343$1,127$943$691
17 years$1,754$1,468$1,222$1,013$836$599
18 years$1,639$1,356$1,116$913$743$520
19 years$1,537$1,257$1,021$825$662$452
20 years$1,444$1,168$937$747$592$394
21 years$1,361$1,088$862$678$530$344
22 years$1,286$1,016$795$616$475$300
23 years$1,217$950$734$561$426$263
24 years$1,154$890$679$512$383$230
25 years$1,096$835$628$468$345$202
26 years$1,042$785$583$428$310$177
27 years$993$739$541$391$280$155
28 years$947$696$503$359$253$136
29 years$905$657$468$329$228$120
30 years$865$620$436$302$206$105
31 years$828$586$407$277$186$93
32 years$794$555$379$255$168$82
33 years$761$525$354$234$152$72
34 years$731$498$331$215$138$63
35 years$702$472$309$198$125$56
36 years$675$448$289$183$113$49
37 years$650$426$271$168$103$43
38 years$625$405$254$155$93$38
39 years$603$385$238$143$84$33
40 years$581$366$223$132$77$29
41 years$561$348$209$122$69$26
42 years$541$332$196$112$63$23
43 years$523$316$184$104$57$20
44 years$505$301$173$96$52$18
45 years$488$287$162$88$47$16
46 years$472$274$152$82$43$14
47 years$457$262$143$75$39$12
48 years$442$250$134$70$35$11
49 years$428$239$126$64$32$9
50 years$415$228$119$60$29$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $425,000, adding $4,153 every year, while hoping to spend $23,928 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: 64/7/29 Blend
39$425,000$425,000$425,000$425,000
40$472,634$450,109$443,521$498,985
41$495,383$446,705$432,920$513,935
42$519,651$442,332$421,162$527,268
43$545,567$436,918$408,182$541,323
44$573,273$430,386$393,915$556,175
45$602,925$422,653$378,289$571,906
46$634,694$413,633$361,232$588,608
47$668,767$403,235$342,667$606,385
48$705,349$391,361$322,514$625,349
49$744,666$377,909$300,690$645,628
50$786,965$362,770$277,106$667,361
51$832,519$345,829$251,673$690,706
52$881,626$326,965$224,294$715,835
53$934,613$306,048$194,869$742,939
54$991,842$282,942$163,296$772,233
55$1,053,708$257,505$129,464$803,952
56$1,120,646$229,582$93,261$838,359
57$1,193,135$199,015$54,569$875,743
58$1,271,701$165,632$13,262$916,425
59$1,356,921$129,255$0$960,763
60$1,449,433$89,694$0$1,018,686
61$1,549,935$46,749$0$1,086,095
62$1,659,197$209$0$1,159,408
63$1,778,065$0$0$1,239,205
64$1,907,472$0$0$1,329,989
65$2,048,441$0$0$1,428,930
66$2,202,101$0$0$1,536,806
67$2,369,693$0$0$1,654,492
68$2,552,583$0$0$1,782,951
69$2,752,276$0$0$1,923,244
70$2,970,425$0$0$2,076,537
71$3,208,855$0$0$2,244,116
72$3,469,571$0$0$2,427,394
73$3,754,782$0$0$2,627,930
74$4,066,922$0$0$2,847,438
75$4,408,668$0$0$3,087,807
76$4,782,970$0$0$3,351,116
77$5,193,076$0$0$3,639,656
78$5,642,564$0$0$3,955,949
79$6,135,373$0$0$4,302,773
80$6,675,843$0$0$4,683,187
81$7,268,752$0$0$5,100,562
82$7,919,365$0$0$5,558,609
83$8,633,481$0$0$6,061,418
84$9,417,486$0$0$6,613,492
85$10,278,416$0$0$7,219,792
86$11,224,023$0$0$7,885,784
87$12,262,843$0$0$8,617,488
88$13,404,282$0$0$9,421,539
89$14,658,704$0$0$10,305,242
90$16,037,523$0$0$11,276,648
91$17,553,316$0$0$12,344,626
92$19,219,938$0$0$13,518,947
93$21,052,656$0$0$14,810,377
94$23,068,288$0$0$16,230,776
95$25,285,364$0$0$17,793,213
96$27,724,302$0$0$19,512,085
97$30,407,597$0$0$21,403,258
98$33,360,033$0$0$23,484,210
99$36,608,919$0$0$25,774,200
100$40,184,346$0$0$28,294,449