Can I retire at age 40 with 434,000?

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 $434,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$35,839$35,520$35,209$34,905$34,608$34,006
2 years$17,742$17,412$17,092$16,781$16,480$15,876
3 years$11,711$11,379$11,059$10,752$10,456$9,868
4 years$8,695$8,365$8,048$7,746$7,457$6,890
5 years$6,887$6,558$6,246$5,950$5,669$5,124
6 years$5,681$5,355$5,048$4,758$4,485$3,964
7 years$4,821$4,497$4,195$3,912$3,648$3,150
8 years$4,176$3,855$3,557$3,282$3,026$2,551
9 years$3,674$3,356$3,064$2,795$2,549$2,096
10 years$3,273$2,959$2,671$2,409$2,171$1,742
11 years$2,945$2,634$2,352$2,097$1,868$1,460
12 years$2,672$2,364$2,087$1,839$1,618$1,232
13 years$2,441$2,136$1,865$1,624$1,411$1,045
14 years$2,244$1,942$1,675$1,441$1,237$891
15 years$2,072$1,774$1,513$1,286$1,089$763
16 years$1,923$1,628$1,371$1,151$963$655
17 years$1,791$1,499$1,248$1,034$854$564
18 years$1,674$1,385$1,139$932$759$487
19 years$1,569$1,284$1,043$842$676$421
20 years$1,475$1,193$957$763$604$365
21 years$1,390$1,111$880$692$541$317
22 years$1,313$1,037$811$629$485$275
23 years$1,242$970$749$573$435$239
24 years$1,178$909$693$523$391$208
25 years$1,119$853$642$477$352$181
26 years$1,064$802$595$437$317$158
27 years$1,014$754$553$400$286$138
28 years$967$711$514$366$258$120
29 years$924$671$478$336$233$105
30 years$883$633$445$308$210$92
31 years$846$599$415$283$190$80
32 years$810$566$387$260$172$70
33 years$777$536$362$239$156$61
34 years$746$508$338$220$141$53
35 years$717$482$316$203$128$47
36 years$689$458$296$187$116$41
37 years$663$435$277$172$105$36
38 years$639$413$259$158$95$31
39 years$615$393$243$146$86$27
40 years$593$374$228$135$78$24
41 years$572$356$213$124$71$21
42 years$553$339$200$115$64$18
43 years$534$323$188$106$58$16
44 years$516$308$176$98$53$14
45 years$499$293$165$90$48$12
46 years$482$280$155$83$44$11
47 years$467$267$146$77$40$9
48 years$452$255$137$71$36$8
49 years$437$244$129$66$33$7
50 years$424$233$121$61$30$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $434,000, adding $6,299 every year, while hoping to spend $22,780 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: 64/14/22 Blend
39$434,000$434,000$434,000$434,000
40$484,765$461,763$455,036$512,655
41$509,974$460,152$446,042$530,596
42$536,990$457,698$435,984$547,063
43$565,974$454,337$424,800$564,531
44$597,102$449,998$412,430$583,100
45$630,568$444,609$398,807$602,881
46$666,582$438,091$383,864$623,995
47$705,379$430,363$367,528$646,579
48$747,213$421,336$349,726$670,783
49$792,365$410,918$330,379$696,775
50$841,145$399,012$309,405$724,738
51$893,890$385,512$286,719$754,879
52$950,975$370,310$262,232$787,422
53$1,012,809$353,290$235,851$822,619
54$1,079,841$334,327$207,478$860,748
55$1,152,569$313,293$177,012$902,116
56$1,231,536$290,049$144,347$947,063
57$1,317,342$264,451$109,372$995,965
58$1,410,646$236,344$71,971$1,049,239
59$1,512,174$205,567$32,024$1,107,345
60$1,622,723$171,947$0$1,170,791
61$1,743,172$135,303$0$1,242,631
62$1,874,487$95,445$0$1,329,181
63$2,017,731$52,169$0$1,423,637
64$2,174,076$5,261$0$1,526,792
65$2,344,811$0$0$1,639,522
66$2,531,353$0$0$1,769,802
67$2,735,264$0$0$1,913,128
68$2,958,264$0$0$2,069,901
69$3,202,247$0$0$2,241,457
70$3,469,296$0$0$2,429,266
71$3,761,708$0$0$2,634,945
72$4,082,009$0$0$2,860,276
73$4,432,985$0$0$3,107,224
74$4,817,700$0$0$3,377,949
75$5,239,531$0$0$3,674,832
76$5,702,198$0$0$4,000,496
77$6,209,796$0$0$4,357,828
78$6,766,838$0$0$4,750,011
79$7,378,292$0$0$5,180,549
80$8,049,634$0$0$5,653,301
81$8,786,893$0$0$6,172,521
82$9,596,713$0$0$6,742,893
83$10,486,411$0$0$7,369,577
84$11,464,051$0$0$8,058,259
85$12,538,512$0$0$8,815,201
86$13,719,579$0$0$9,647,303
87$15,018,033$0$0$10,562,169
88$16,445,750$0$0$11,568,171
89$18,015,814$0$0$12,674,539
90$19,742,641$0$0$13,891,439
91$21,642,114$0$0$15,230,071
92$23,731,735$0$0$16,702,777
93$26,030,783$0$0$18,323,156
94$28,560,504$0$0$20,106,189
95$31,344,307$0$0$22,068,385
96$34,407,982$0$0$24,227,933
97$37,779,948$0$0$26,604,874
98$41,491,519$0$0$29,221,293
99$45,577,198$0$0$32,101,523
100$50,075,003$0$0$35,272,375