Can I retire at age 40 with 789,000?

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 $789,000?

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$65,155$64,575$64,008$63,456$62,916$61,370
2 years$32,255$31,654$31,072$30,508$29,960$28,412
3 years$21,290$20,686$20,106$19,546$19,008$17,506
4 years$15,808$15,207$14,632$14,082$13,557$12,113
5 years$12,520$11,922$11,355$10,816$10,305$8,924
6 years$10,329$9,735$9,176$8,650$8,154$6,836
7 years$8,764$8,176$7,626$7,112$6,632$5,377
8 years$7,591$7,008$6,467$5,966$5,502$4,310
9 years$6,679$6,102$5,570$5,082$4,633$3,503
10 years$5,950$5,378$4,856$4,380$3,948$2,878
11 years$5,354$4,788$4,275$3,812$3,395$2,385
12 years$4,858$4,298$3,794$3,344$2,942$1,989
13 years$4,438$3,884$3,390$2,952$2,566$1,668
14 years$4,079$3,530$3,046$2,621$2,249$1,405
15 years$3,768$3,225$2,750$2,337$1,980$1,188
16 years$3,496$2,959$2,493$2,093$1,750$1,007
17 years$3,256$2,725$2,269$1,880$1,552$856
18 years$3,043$2,518$2,071$1,694$1,380$729
19 years$2,853$2,334$1,896$1,531$1,230$622
20 years$2,682$2,169$1,740$1,387$1,098$532
21 years$2,527$2,020$1,600$1,258$983$455
22 years$2,387$1,885$1,475$1,144$881$390
23 years$2,259$1,763$1,362$1,042$791$334
24 years$2,142$1,652$1,260$950$711$287
25 years$2,034$1,551$1,167$868$640$246
26 years$1,935$1,457$1,082$794$576$212
27 years$1,843$1,371$1,005$726$520$182
28 years$1,759$1,292$934$666$469$156
29 years$1,680$1,219$869$610$423$134
30 years$1,606$1,151$810$560$382$116
31 years$1,537$1,088$755$514$346$100
32 years$1,473$1,030$704$473$313$86
33 years$1,413$975$658$435$283$74
34 years$1,356$924$614$400$256$64
35 years$1,303$877$574$368$232$55
36 years$1,253$832$537$339$210$47
37 years$1,206$790$503$312$191$41
38 years$1,161$751$471$288$173$35
39 years$1,119$714$441$266$157$30
40 years$1,079$680$414$245$142$26
41 years$1,041$647$388$226$129$22
42 years$1,005$616$364$209$117$19
43 years$970$587$341$193$106$17
44 years$937$560$320$178$96$14
45 years$906$534$301$164$88$12
46 years$877$509$283$152$79$11
47 years$848$486$265$140$72$9
48 years$821$464$249$129$66$8
49 years$795$443$234$120$60$7
50 years$770$423$220$111$54$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $789,000, adding $6,794 every year, while hoping to spend $55,788 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: 71/8/21 Blend
39$789,000$789,000$789,000$789,000
40$876,486$834,669$822,440$933,739
41$906,530$816,210$790,633$954,327
42$937,768$794,976$755,892$969,603
43$970,264$770,774$718,058$984,946
44$1,004,085$743,396$676,967$1,000,359
45$1,039,303$712,624$632,447$1,015,841
46$1,075,998$678,228$584,319$1,031,396
47$1,114,251$639,963$532,396$1,047,028
48$1,154,155$597,571$476,481$1,062,744
49$1,195,805$550,778$416,369$1,078,552
50$1,239,307$499,297$351,848$1,094,465
51$1,284,775$442,821$282,693$1,110,498
52$1,332,331$381,028$208,672$1,126,668
53$1,382,107$313,577$129,542$1,142,999
54$1,434,248$240,108$45,047$1,159,518
55$1,488,909$160,241$0$1,176,257
56$1,546,259$73,574$0$1,203,365
57$1,606,482$0$0$1,242,207
58$1,669,776$0$0$1,284,585
59$1,736,358$0$0$1,335,990
60$1,806,464$0$0$1,390,132
61$1,880,350$0$0$1,447,208
62$1,958,295$0$0$1,507,438
63$2,040,605$0$0$1,571,059
64$2,127,611$0$0$1,638,329
65$2,219,676$0$0$1,709,532
66$2,317,196$0$0$1,784,977
67$2,420,603$0$0$1,865,001
68$2,530,369$0$0$1,949,974
69$2,647,012$0$0$2,040,297
70$2,771,097$0$0$2,136,414
71$2,903,242$0$0$2,238,807
72$3,044,125$0$0$2,348,005
73$3,194,487$0$0$2,464,588
74$3,355,142$0$0$2,589,190
75$3,526,981$0$0$2,722,508
76$3,710,981$0$0$2,865,305
77$3,908,211$0$0$3,018,418
78$4,119,849$0$0$3,182,765
79$4,347,184$0$0$3,359,355
80$4,591,630$0$0$3,549,292
81$4,854,743$0$0$3,753,793
82$5,138,228$0$0$3,974,191
83$5,443,961$0$0$4,211,951
84$5,773,999$0$0$4,468,683
85$6,130,606$0$0$4,746,156
86$6,516,268$0$0$5,046,314
87$6,933,719$0$0$5,371,293
88$7,385,962$0$0$5,723,443
89$7,876,302$0$0$6,105,347
90$8,408,371$0$0$6,519,846
91$8,986,165$0$0$6,970,064
92$9,614,079$0$0$7,459,437
93$10,296,946$0$0$7,991,748
94$11,040,086$0$0$8,571,154
95$11,849,350$0$0$9,202,234
96$12,731,180$0$0$9,890,024
97$13,692,663$0$0$10,640,067
98$14,741,598$0$0$11,458,465
99$15,886,571$0$0$12,351,932
100$17,137,033$0$0$13,327,860