Can I retire at age 40 with 788,000?

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 $788,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$65,072$64,493$63,927$63,375$62,836$61,292
2 years$32,214$31,614$31,033$30,469$29,922$28,376
3 years$21,263$20,660$20,080$19,522$18,984$17,484
4 years$15,788$15,187$14,613$14,064$13,539$12,098
5 years$12,504$11,907$11,340$10,803$10,292$8,912
6 years$10,316$9,723$9,165$8,639$8,144$6,827
7 years$8,753$8,165$7,616$7,103$6,623$5,370
8 years$7,582$6,999$6,459$5,958$5,495$4,304
9 years$6,671$6,094$5,563$5,075$4,627$3,499
10 years$5,943$5,372$4,850$4,375$3,943$2,875
11 years$5,348$4,782$4,270$3,807$3,391$2,382
12 years$4,852$4,292$3,789$3,340$2,938$1,987
13 years$4,433$3,879$3,386$2,948$2,562$1,666
14 years$4,074$3,526$3,042$2,617$2,246$1,403
15 years$3,763$3,221$2,746$2,334$1,978$1,186
16 years$3,491$2,955$2,490$2,090$1,748$1,006
17 years$3,252$2,721$2,266$1,878$1,550$855
18 years$3,039$2,515$2,068$1,692$1,378$728
19 years$2,849$2,331$1,894$1,529$1,228$622
20 years$2,678$2,166$1,738$1,385$1,097$531
21 years$2,524$2,017$1,598$1,257$982$455
22 years$2,384$1,883$1,473$1,143$880$389
23 years$2,256$1,761$1,360$1,041$790$334
24 years$2,139$1,650$1,258$949$710$286
25 years$2,032$1,549$1,165$867$639$246
26 years$1,933$1,455$1,081$793$576$211
27 years$1,841$1,370$1,003$726$519$182
28 years$1,756$1,291$933$665$468$156
29 years$1,677$1,218$868$610$423$134
30 years$1,604$1,150$809$559$382$116
31 years$1,535$1,087$754$514$345$99
32 years$1,471$1,029$703$472$312$86
33 years$1,411$974$657$434$283$74
34 years$1,355$923$614$400$256$63
35 years$1,302$876$574$368$232$55
36 years$1,252$831$537$339$210$47
37 years$1,204$789$502$312$190$41
38 years$1,160$750$470$288$173$35
39 years$1,117$713$441$265$157$30
40 years$1,077$679$413$245$142$26
41 years$1,039$646$387$226$129$22
42 years$1,003$615$363$208$117$19
43 years$969$586$341$192$106$17
44 years$936$559$320$178$96$14
45 years$905$533$300$164$87$12
46 years$875$508$282$151$79$11
47 years$847$485$265$140$72$9
48 years$820$463$249$129$65$8
49 years$794$442$234$119$59$7
50 years$769$422$220$110$54$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $788,000, adding $4,994 every year, while hoping to spend $41,725 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: 81/9/10 Blend
39$788,000$788,000$788,000$788,000
40$873,527$831,763$819,549$942,490
41$918,232$828,125$802,609$984,778
42$966,098$822,909$783,703$1,025,184
43$1,017,404$815,996$762,721$1,068,290
44$1,072,455$807,256$739,548$1,114,344
45$1,131,587$796,552$714,064$1,163,621
46$1,195,167$783,742$686,144$1,216,422
47$1,263,599$768,670$655,655$1,273,079
48$1,337,327$751,175$622,460$1,333,960
49$1,416,837$731,086$586,415$1,399,468
50$1,502,666$708,220$547,371$1,470,048
51$1,595,400$682,385$505,170$1,546,190
52$1,695,686$653,377$459,648$1,628,437
53$1,804,234$620,981$410,635$1,717,383
54$1,921,825$584,968$357,950$1,813,685
55$2,049,317$545,098$301,408$1,918,069
56$2,187,655$501,115$240,812$2,031,332
57$2,337,877$452,750$175,960$2,154,356
58$2,501,124$399,719$106,639$2,288,110
59$2,678,653$341,720$32,625$2,433,665
60$2,871,846$278,434$0$2,592,201
61$3,082,224$209,527$0$2,769,965
62$3,311,460$134,643$0$2,967,482
63$3,561,396$53,408$0$3,182,876
64$3,834,058$0$0$3,417,918
65$4,131,678$0$0$3,677,984
66$4,456,712$0$0$3,967,799
67$4,811,863$0$0$4,284,488
68$5,200,107$0$0$4,630,706
69$5,624,721$0$0$5,009,378
70$6,089,312$0$0$5,423,724
71$6,597,855$0$0$5,877,290
72$7,154,723$0$0$6,373,981
73$7,764,735$0$0$6,918,096
74$8,433,194$0$0$7,514,372
75$9,165,945$0$0$8,168,022
76$9,969,422$0$0$8,884,790
77$10,850,713$0$0$9,671,004
78$11,817,625$0$0$10,533,630
79$12,878,756$0$0$11,480,344
80$14,043,578$0$0$12,519,600
81$15,322,525$0$0$13,660,710
82$16,727,089$0$0$14,913,932
83$18,269,931$0$0$16,290,568
84$19,964,998$0$0$17,803,066
85$21,827,655$0$0$19,465,142
86$23,874,830$0$0$21,291,903
87$26,125,170$0$0$23,299,995
88$28,599,220$0$0$25,507,757
89$31,319,616$0$0$27,935,392
90$34,311,296$0$0$30,605,159
91$37,601,735$0$0$33,541,585
92$41,221,206$0$0$36,771,689
93$45,203,061$0$0$40,325,242
94$49,584,051$0$0$44,235,048
95$54,404,665$0$0$48,537,247
96$59,709,517$0$0$53,271,663
97$65,547,765$0$0$58,482,173
98$71,973,573$0$0$64,217,125
99$79,046,621$0$0$70,529,789
100$86,832,670$0$0$77,478,865