Can I retire at age 40 with 785,000?

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 $785,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%20%
1 years$64,825$64,247$63,684$63,134$62,597$60,090
2 years$32,091$31,494$30,914$30,353$29,808$27,313
3 years$21,182$20,581$20,004$19,447$18,911$16,508
4 years$15,728$15,130$14,558$14,011$13,488$11,194
5 years$12,457$11,862$11,297$10,762$10,253$8,075
6 years$10,276$9,686$9,130$8,606$8,113$6,051
7 years$8,720$8,134$7,587$7,076$6,598$4,652
8 years$7,553$6,973$6,434$5,936$5,474$3,642
9 years$6,646$6,071$5,542$5,056$4,610$2,889
10 years$5,920$5,351$4,832$4,358$3,928$2,315
11 years$5,327$4,764$4,254$3,793$3,378$1,869
12 years$4,833$4,276$3,775$3,327$2,927$1,518
13 years$4,416$3,864$3,373$2,937$2,553$1,239
14 years$4,058$3,512$3,030$2,607$2,238$1,015
15 years$3,749$3,209$2,736$2,325$1,970$834
16 years$3,478$2,944$2,481$2,082$1,741$687
17 years$3,239$2,711$2,257$1,871$1,544$567
18 years$3,027$2,505$2,061$1,686$1,373$469
19 years$2,838$2,322$1,886$1,523$1,224$388
20 years$2,668$2,158$1,731$1,380$1,093$322
21 years$2,514$2,010$1,592$1,252$978$267
22 years$2,375$1,876$1,468$1,138$877$222
23 years$2,247$1,755$1,355$1,037$787$184
24 years$2,131$1,644$1,253$946$707$153
25 years$2,024$1,543$1,161$864$636$127
26 years$1,925$1,450$1,077$790$573$106
27 years$1,834$1,365$1,000$723$517$88
28 years$1,750$1,286$929$662$466$73
29 years$1,671$1,213$865$607$421$61
30 years$1,598$1,146$806$557$381$51
31 years$1,530$1,083$751$512$344$42
32 years$1,466$1,025$701$470$311$35
33 years$1,406$970$654$433$282$29
34 years$1,350$920$611$398$255$24
35 years$1,297$872$571$366$231$20
36 years$1,247$828$535$337$209$17
37 years$1,200$786$500$311$190$14
38 years$1,155$747$469$287$172$12
39 years$1,113$711$439$264$156$10
40 years$1,073$676$411$244$141$8
41 years$1,035$644$386$225$128$7
42 years$999$613$362$208$116$6
43 years$965$584$340$192$106$5
44 years$933$557$319$177$96$4
45 years$902$531$299$163$87$3
46 years$872$506$281$151$79$3
47 years$844$483$264$139$72$2
48 years$817$461$248$129$65$2
49 years$791$441$233$119$59$2
50 years$766$421$219$110$54$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $785,000, adding $5,532 every year, while hoping to spend $26,015 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: 50/44/6 Blend
39$785,000$785,000$785,000$785,000
40$870,776$829,171$817,004$912,747
41$931,916$842,121$816,694$954,882
42$998,419$854,833$815,501$997,384
43$1,070,807$867,269$813,369$1,042,945
44$1,149,651$879,386$810,239$1,091,855
45$1,235,579$891,141$806,046$1,144,439
46$1,329,286$902,484$800,726$1,201,050
47$1,431,532$913,364$794,209$1,262,082
48$1,543,157$923,728$786,424$1,327,966
49$1,665,085$933,516$777,295$1,399,181
50$1,798,331$942,667$766,742$1,476,252
51$1,944,016$951,113$754,683$1,559,761
52$2,103,373$958,784$741,032$1,650,349
53$2,277,757$965,604$725,696$1,748,723
54$2,468,663$971,494$708,582$1,855,664
55$2,677,737$976,367$689,590$1,972,033
56$2,906,790$980,133$668,615$2,098,779
57$3,157,818$982,696$645,549$2,236,952
58$3,433,019$983,951$620,279$2,387,707
59$3,734,814$983,791$592,685$2,552,321
60$4,065,867$982,100$562,642$2,732,201
61$4,429,117$978,754$530,022$2,928,901
62$4,827,796$973,622$494,687$3,144,135
63$5,265,468$966,567$456,496$3,379,793
64$5,746,058$957,441$415,301$3,637,960
65$6,273,889$946,088$370,946$3,920,937
66$6,853,723$932,344$323,271$4,231,262
67$7,490,807$916,033$272,104$4,571,735
68$8,190,921$896,970$217,271$4,945,445
69$8,960,432$874,958$158,587$5,355,797
70$9,806,355$849,790$95,858$5,806,549
71$10,736,419$821,246$28,886$6,301,846
72$11,759,139$789,092$0$6,846,259
73$12,883,896$753,082$0$7,447,557
74$14,121,025$712,955$0$8,110,724
75$15,481,916$668,436$0$8,840,057
76$16,979,114$619,233$0$9,642,334
77$18,626,445$565,037$0$10,525,032
78$20,439,141$505,522$0$11,496,391
79$22,433,986$440,344$0$12,565,501
80$24,629,470$369,139$0$13,742,383
81$27,045,972$291,523$0$15,038,088
82$29,705,942$207,088$0$16,464,798
83$32,634,120$115,407$0$18,035,946
84$35,857,763$16,026$0$19,766,344
85$39,406,910$0$0$21,672,320
86$43,314,658$0$0$23,816,197
87$47,617,474$0$0$26,185,469
88$52,355,547$0$0$28,794,516
89$57,573,158$0$0$31,667,738
90$63,319,102$0$0$34,832,018
91$69,647,146$0$0$38,316,981
92$76,616,540$0$0$42,155,271
93$84,292,572$0$0$46,382,861
94$92,747,185$0$0$51,039,389
95$102,059,657$0$0$56,168,535
96$112,317,347$0$0$61,818,433
97$123,616,521$0$0$68,042,123
98$136,063,260$0$0$74,898,052
99$149,774,458$0$0$82,450,629
100$164,878,929$0$0$90,770,827