Can I retire at age 40 with 787,000?

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 $787,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$64,990$64,411$63,846$63,295$62,756$61,066
2 years$32,173$31,574$30,993$30,430$29,884$28,193
3 years$21,236$20,634$20,055$19,497$18,960$17,321
4 years$15,768$15,168$14,595$14,046$13,522$11,948
5 years$12,488$11,892$11,326$10,789$10,279$8,775
6 years$10,303$9,711$9,153$8,628$8,134$6,700
7 years$8,742$8,155$7,606$7,094$6,615$5,252
8 years$7,572$6,990$6,451$5,951$5,488$4,195
9 years$6,662$6,086$5,556$5,069$4,621$3,397
10 years$5,935$5,365$4,844$4,369$3,938$2,781
11 years$5,341$4,776$4,264$3,803$3,387$2,295
12 years$4,846$4,287$3,785$3,335$2,935$1,907
13 years$4,427$3,874$3,381$2,945$2,559$1,593
14 years$4,068$3,521$3,038$2,614$2,243$1,336
15 years$3,758$3,217$2,743$2,331$1,975$1,125
16 years$3,487$2,951$2,487$2,087$1,746$950
17 years$3,248$2,718$2,263$1,875$1,548$804
18 years$3,035$2,512$2,066$1,690$1,376$682
19 years$2,845$2,328$1,891$1,527$1,227$579
20 years$2,675$2,163$1,736$1,383$1,096$493
21 years$2,521$2,015$1,596$1,255$981$420
22 years$2,381$1,881$1,471$1,141$879$358
23 years$2,253$1,759$1,359$1,039$789$305
24 years$2,136$1,648$1,256$948$709$261
25 years$2,029$1,547$1,164$866$638$223
26 years$1,930$1,454$1,079$792$575$190
27 years$1,839$1,368$1,002$725$518$163
28 years$1,754$1,289$932$664$468$139
29 years$1,675$1,216$867$609$422$119
30 years$1,602$1,148$808$559$382$102
31 years$1,534$1,086$753$513$345$87
32 years$1,469$1,027$702$472$312$75
33 years$1,409$973$656$434$282$64
34 years$1,353$922$613$399$256$55
35 years$1,300$875$573$367$232$47
36 years$1,250$830$536$338$210$40
37 years$1,203$788$502$312$190$35
38 years$1,158$749$470$287$172$30
39 years$1,116$712$440$265$156$25
40 years$1,076$678$413$244$142$22
41 years$1,038$645$387$225$129$19
42 years$1,002$614$363$208$117$16
43 years$968$585$340$192$106$14
44 years$935$558$320$177$96$12
45 years$904$532$300$164$87$10
46 years$874$508$282$151$79$9
47 years$846$484$265$140$72$7
48 years$819$463$249$129$65$6
49 years$793$442$234$119$59$5
50 years$768$422$220$110$54$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $787,000, adding $5,722 every year, while hoping to spend $36,534 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: 62/18/20 Blend
39$787,000$787,000$787,000$787,000
40$873,176$831,465$819,267$922,464
41$923,368$833,335$807,840$958,275
42$977,456$834,072$794,807$992,771
43$1,035,797$833,582$780,073$1,029,593
44$1,098,786$831,766$763,543$1,068,973
45$1,166,856$828,516$745,116$1,111,164
46$1,240,483$823,721$724,685$1,156,450
47$1,320,190$817,261$702,140$1,205,142
48$1,406,552$809,010$677,365$1,257,585
49$1,500,202$798,833$650,238$1,314,162
50$1,601,835$786,588$620,633$1,375,294
51$1,712,216$772,125$588,418$1,441,448
52$1,832,186$755,283$553,454$1,513,140
53$1,962,670$735,893$515,597$1,590,942
54$2,104,688$713,777$474,694$1,675,484
55$2,259,359$688,745$430,589$1,767,462
56$2,427,916$660,596$383,116$1,867,648
57$2,611,716$629,118$332,103$1,976,893
58$2,812,252$594,086$277,370$2,096,138
59$3,031,169$555,263$218,729$2,226,422
60$3,270,275$512,398$155,983$2,368,894
61$3,531,562$465,225$88,928$2,524,823
62$3,817,224$413,464$17,350$2,695,609
63$4,129,676$356,818$0$2,882,801
64$4,471,574$294,973$0$3,100,706
65$4,845,848$227,600$0$3,343,383
66$5,255,720$154,348$0$3,609,263
67$5,704,740$74,847$0$3,900,700
68$6,196,817$0$0$4,220,291
69$6,736,258$0$0$4,573,138
70$7,327,803$0$0$4,976,381
71$7,976,676$0$0$5,418,764
72$8,688,630$0$0$5,904,215
73$9,470,000$0$0$6,437,064
74$10,327,767$0$0$7,022,078
75$11,269,618$0$0$7,664,509
76$12,304,023$0$0$8,370,143
77$13,440,313$0$0$9,145,353
78$14,688,764$0$0$9,997,160
79$16,060,699$0$0$10,933,300
80$17,568,593$0$0$11,962,293
81$19,226,188$0$0$13,093,528
82$21,048,624$0$0$14,337,347
83$23,052,581$0$0$15,705,148
84$25,256,437$0$0$17,209,484
85$27,680,440$0$0$18,864,188
86$30,346,899$0$0$20,684,501
87$33,280,392$0$0$22,687,215
88$36,508,003$0$0$24,890,832
89$40,059,569$0$0$27,315,738
90$43,967,969$0$0$29,984,395
91$48,269,430$0$0$32,921,552
92$53,003,866$0$0$36,154,479
93$58,215,260$0$0$39,713,226
94$63,952,073$0$0$43,630,900
95$70,267,706$0$0$47,943,986
96$77,220,997$0$0$52,692,683
97$84,876,783$0$0$57,921,286
98$93,306,504$0$0$63,678,607
99$102,588,885$0$0$70,018,428
100$112,810,670$0$0$77,000,017