Can I retire at age 40 with 427,000?

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 $427,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$35,261$34,947$34,641$34,342$34,050$33,736
2 years$17,456$17,131$16,816$16,510$16,214$15,898
3 years$11,522$11,195$10,881$10,578$10,287$9,978
4 years$8,555$8,230$7,919$7,621$7,337$7,038
5 years$6,776$6,452$6,145$5,854$5,577$5,289
6 years$5,590$5,269$4,966$4,681$4,413$4,136
7 years$4,743$4,425$4,127$3,849$3,589$3,323
8 years$4,108$3,793$3,500$3,229$2,977$2,723
9 years$3,615$3,302$3,015$2,750$2,507$2,264
10 years$3,220$2,911$2,628$2,371$2,136$1,904
11 years$2,898$2,591$2,314$2,063$1,837$1,616
12 years$2,629$2,326$2,053$1,810$1,592$1,381
13 years$2,402$2,102$1,835$1,598$1,388$1,188
14 years$2,207$1,911$1,648$1,418$1,217$1,026
15 years$2,039$1,745$1,488$1,265$1,072$890
16 years$1,892$1,601$1,349$1,132$947$775
17 years$1,762$1,475$1,228$1,018$840$677
18 years$1,647$1,363$1,121$917$747$593
19 years$1,544$1,263$1,026$829$666$520
20 years$1,451$1,174$942$750$594$457
21 years$1,368$1,093$866$681$532$403
22 years$1,292$1,020$798$619$477$355
23 years$1,222$954$737$564$428$314
24 years$1,159$894$682$514$385$277
25 years$1,101$839$631$470$346$245
26 years$1,047$789$586$430$312$217
27 years$998$742$544$393$281$193
28 years$952$699$505$360$254$171
29 years$909$660$470$330$229$151
30 years$869$623$438$303$207$134
31 years$832$589$408$278$187$119
32 years$797$557$381$256$169$106
33 years$765$528$356$235$153$94
34 years$734$500$332$216$139$84
35 years$705$474$311$199$126$75
36 years$678$450$291$184$114$66
37 years$653$428$272$169$103$59
38 years$628$407$255$156$94$53
39 years$605$387$239$144$85$47
40 years$584$368$224$133$77$42
41 years$563$350$210$122$70$37
42 years$544$333$197$113$63$33
43 years$525$318$185$104$57$29
44 years$507$303$173$96$52$26
45 years$490$289$163$89$47$23
46 years$474$275$153$82$43$21
47 years$459$263$144$76$39$18
48 years$444$251$135$70$35$16
49 years$430$240$127$65$32$15
50 years$417$229$119$60$29$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $427,000, adding $4,941 every year, while hoping to spend $30,294 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: 73/15/12 Blend
39$427,000$427,000$427,000$427,000
40$475,651$453,020$446,401$508,850
41$491,934$442,985$429,123$521,432
42$508,864$431,443$410,251$530,981
43$526,473$418,289$389,699$540,618
44$544,797$403,410$367,378$550,343
45$563,877$386,687$343,196$560,157
46$583,753$367,995$317,053$570,062
47$604,471$347,202$288,850$580,060
48$626,079$324,167$258,478$590,157
49$648,630$298,742$225,828$600,357
50$672,179$270,769$190,783$610,665
51$696,789$240,084$153,221$621,091
52$722,524$206,511$113,016$631,644
53$749,456$169,864$70,037$642,335
54$777,662$129,949$24,144$653,180
55$807,225$86,559$0$664,195
56$838,236$39,474$0$678,579
57$870,794$0$0$696,682
58$905,005$0$0$717,362
59$940,985$0$0$745,970
60$978,861$0$0$776,093
61$1,018,770$0$0$807,840
62$1,060,862$0$0$841,332
63$1,105,300$0$0$876,700
64$1,152,261$0$0$914,086
65$1,201,941$0$0$953,646
66$1,254,551$0$0$995,550
67$1,310,322$0$0$1,039,985
68$1,369,507$0$0$1,087,153
69$1,432,384$0$0$1,137,276
70$1,499,255$0$0$1,190,598
71$1,570,451$0$0$1,247,384
72$1,646,334$0$0$1,307,926
73$1,727,302$0$0$1,372,542
74$1,813,790$0$0$1,441,582
75$1,906,273$0$0$1,515,429
76$2,005,276$0$0$1,594,502
77$2,111,370$0$0$1,679,263
78$2,225,186$0$0$1,770,217
79$2,347,411$0$0$1,867,917
80$2,478,805$0$0$1,972,973
81$2,620,197$0$0$2,086,051
82$2,772,500$0$0$2,207,887
83$2,936,718$0$0$2,339,285
84$3,113,950$0$0$2,481,131
85$3,305,407$0$0$2,634,397
86$3,512,419$0$0$2,800,153
87$3,736,446$0$0$2,979,572
88$3,979,096$0$0$3,173,947
89$4,242,134$0$0$3,384,698
90$4,527,503$0$0$3,613,386
91$4,837,339$0$0$3,861,729
92$5,173,991$0$0$4,131,616
93$5,540,043$0$0$4,425,125
94$5,938,340$0$0$4,744,543
95$6,372,009$0$0$5,092,385
96$6,844,493$0$0$5,471,420
97$7,359,580$0$0$5,884,694
98$7,921,440$0$0$6,335,560
99$8,534,662$0$0$6,827,710
100$9,204,298$0$0$7,365,205