Can I retire at age 40 with 795,000?

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 $795,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$65,650$65,066$64,495$63,938$63,394$61,988
2 years$32,500$31,895$31,308$30,740$30,188$28,778
3 years$21,452$20,844$20,259$19,695$19,152$17,783
4 years$15,928$15,322$14,743$14,189$13,660$12,342
5 years$12,615$12,013$11,441$10,899$10,384$9,121
6 years$10,407$9,809$9,246$8,716$8,216$7,010
7 years$8,831$8,238$7,684$7,166$6,682$5,532
8 years$7,649$7,061$6,516$6,011$5,543$4,450
9 years$6,730$6,148$5,613$5,120$4,668$3,630
10 years$5,996$5,419$4,893$4,414$3,978$2,994
11 years$5,395$4,825$4,308$3,841$3,421$2,490
12 years$4,895$4,330$3,823$3,369$2,965$2,085
13 years$4,472$3,913$3,416$2,975$2,585$1,756
14 years$4,110$3,557$3,069$2,640$2,266$1,485
15 years$3,796$3,249$2,771$2,355$1,995$1,261
16 years$3,522$2,981$2,512$2,108$1,763$1,074
17 years$3,281$2,746$2,286$1,894$1,564$917
18 years$3,066$2,537$2,087$1,707$1,390$784
19 years$2,874$2,351$1,910$1,543$1,239$672
20 years$2,702$2,185$1,753$1,397$1,107$577
21 years$2,546$2,035$1,613$1,268$990$496
22 years$2,405$1,900$1,486$1,153$888$427
23 years$2,276$1,777$1,372$1,050$797$368
24 years$2,158$1,665$1,269$958$716$317
25 years$2,050$1,562$1,176$875$645$273
26 years$1,950$1,468$1,090$800$581$236
27 years$1,857$1,382$1,012$732$523$204
28 years$1,772$1,302$941$671$472$176
29 years$1,692$1,228$876$615$427$152
30 years$1,618$1,160$816$564$385$132
31 years$1,549$1,097$761$518$348$114
32 years$1,484$1,038$710$476$315$99
33 years$1,424$983$663$438$285$85
34 years$1,367$931$619$403$258$74
35 years$1,313$883$579$371$234$64
36 years$1,263$838$541$342$212$55
37 years$1,215$796$507$315$192$48
38 years$1,170$757$475$290$174$41
39 years$1,127$720$445$268$158$36
40 years$1,087$685$417$247$143$31
41 years$1,049$652$391$228$130$27
42 years$1,012$621$367$210$118$23
43 years$978$591$344$194$107$20
44 years$945$564$323$179$97$18
45 years$913$538$303$165$88$15
46 years$883$513$285$153$80$13
47 years$855$489$268$141$73$11
48 years$827$467$251$130$66$10
49 years$801$446$236$121$60$9
50 years$776$426$222$111$54$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $795,000, adding $6,615 every year, while hoping to spend $48,411 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: 29/47/24 Blend
39$795,000$795,000$795,000$795,000
40$882,913$840,778$828,456$901,767
41$921,462$830,468$804,700$906,648
42$962,319$818,029$778,526$907,179
43$1,005,671$803,307$749,802$906,752
44$1,051,718$786,138$718,389$905,315
45$1,100,681$766,347$684,142$902,819
46$1,152,801$743,748$646,912$899,211
47$1,208,343$718,148$606,540$894,440
48$1,267,596$689,340$562,861$888,457
49$1,330,877$657,103$515,703$881,212
50$1,398,533$621,208$464,885$872,657
51$1,470,944$581,408$410,221$862,747
52$1,548,530$537,447$351,512$851,440
53$1,631,747$489,048$288,555$838,695
54$1,721,098$435,924$221,134$824,478
55$1,817,134$377,769$149,026$808,758
56$1,920,461$314,260$71,998$791,514
57$2,031,745$245,054$0$772,727
58$2,151,714$169,793$0$755,005
59$2,281,171$88,095$0$755,582
60$2,420,997$0$0$756,085
61$2,572,160$0$0$756,841
62$2,735,725$0$0$807,061
63$2,912,862$0$0$861,552
64$3,104,856$0$0$920,726
65$3,313,123$0$0$985,031
66$3,539,217$0$0$1,054,962
67$3,784,850$0$0$1,131,064
68$4,051,903$0$0$1,213,936
69$4,342,448$0$0$1,304,238
70$4,658,761$0$0$1,402,694
71$5,003,349$0$0$1,510,104
72$5,378,972$0$0$1,627,346
73$5,788,665$0$0$1,755,388
74$6,235,768$0$0$1,895,296
75$6,723,962$0$0$2,048,240
76$7,257,293$0$0$2,215,513
77$7,840,220$0$0$2,398,536
78$8,477,651$0$0$2,598,874
79$9,174,987$0$0$2,818,251
80$9,938,180$0$0$3,058,565
81$10,773,779$0$0$3,321,905
82$11,688,999$0$0$3,610,574
83$12,691,786$0$0$3,927,107
84$13,790,887$0$0$4,274,296
85$14,995,940$0$0$4,655,218
86$16,317,557$0$0$5,073,259
87$17,767,428$0$0$5,532,151
88$19,358,428$0$0$6,036,005
89$21,104,741$0$0$6,589,349
90$23,021,987$0$0$7,197,171
91$25,127,377$0$0$7,864,965
92$27,439,866$0$0$8,598,785
93$29,980,338$0$0$9,405,300
94$32,771,799$0$0$10,291,857
95$35,839,593$0$0$11,266,550
96$39,211,642$0$0$12,338,297
97$42,918,707$0$0$13,516,922
98$46,994,678$0$0$14,813,251
99$51,476,893$0$0$16,239,210
100$56,406,490$0$0$17,807,940