Can I retire at age 40 with 820,000?

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 $820,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$67,715$67,112$66,523$65,949$65,388$64,305
2 years$33,522$32,898$32,293$31,706$31,137$30,049
3 years$22,126$21,499$20,896$20,314$19,755$18,695
4 years$16,429$15,804$15,207$14,635$14,089$13,067
5 years$13,012$12,391$11,801$11,241$10,710$9,728
6 years$10,735$10,118$9,537$8,990$8,475$7,534
7 years$9,108$8,497$7,925$7,391$6,892$5,993
8 years$7,889$7,283$6,721$6,200$5,718$4,860
9 years$6,942$6,342$5,789$5,281$4,815$3,998
10 years$6,184$5,590$5,047$4,552$4,103$3,325
11 years$5,565$4,976$4,443$3,962$3,529$2,790
12 years$5,049$4,466$3,943$3,475$3,058$2,358
13 years$4,613$4,036$3,523$3,068$2,666$2,004
14 years$4,239$3,669$3,165$2,723$2,337$1,711
15 years$3,916$3,352$2,858$2,429$2,058$1,467
16 years$3,633$3,075$2,591$2,175$1,819$1,261
17 years$3,384$2,832$2,358$1,954$1,613$1,088
18 years$3,162$2,617$2,152$1,761$1,434$940
19 years$2,965$2,425$1,970$1,591$1,278$814
20 years$2,787$2,254$1,808$1,441$1,142$706
21 years$2,626$2,099$1,663$1,308$1,022$614
22 years$2,480$1,960$1,533$1,189$916$534
23 years$2,348$1,833$1,416$1,083$822$465
24 years$2,226$1,717$1,309$988$739$405
25 years$2,114$1,611$1,212$902$665$354
26 years$2,011$1,515$1,125$825$599$309
27 years$1,916$1,425$1,044$755$540$270
28 years$1,828$1,343$971$692$487$236
29 years$1,746$1,267$903$634$440$206
30 years$1,669$1,197$841$582$398$180
31 years$1,598$1,131$784$535$359$158
32 years$1,531$1,070$732$491$325$138
33 years$1,468$1,014$683$452$294$121
34 years$1,410$961$639$416$266$106
35 years$1,354$911$597$383$241$93
36 years$1,302$865$558$352$219$81
37 years$1,253$821$523$325$198$71
38 years$1,207$781$489$299$180$62
39 years$1,163$742$459$276$163$55
40 years$1,121$706$430$255$148$48
41 years$1,082$672$403$235$134$42
42 years$1,044$640$378$217$122$37
43 years$1,008$610$355$200$110$32
44 years$974$581$333$185$100$28
45 years$942$555$313$171$91$25
46 years$911$529$294$158$83$22
47 years$882$505$276$146$75$19
48 years$853$482$259$135$68$17
49 years$826$460$244$124$62$15
50 years$801$440$229$115$56$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $820,000, adding $3,970 every year, while hoping to spend $50,208 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: 65/18/17 Blend
39$820,000$820,000$820,000$820,000
40$907,735$864,275$851,565$962,688
41$946,903$853,204$826,672$988,928
42$988,384$839,907$799,261$1,011,450
43$1,032,359$824,223$769,197$1,034,846
44$1,079,030$805,980$736,335$1,059,203
45$1,128,614$784,996$700,526$1,084,616
46$1,181,351$761,079$661,612$1,111,192
47$1,237,502$734,025$619,429$1,139,052
48$1,297,354$703,619$573,806$1,168,331
49$1,361,219$669,632$524,564$1,199,178
50$1,429,443$631,823$471,516$1,231,761
51$1,502,400$589,936$414,466$1,266,268
52$1,580,505$543,703$353,210$1,302,907
53$1,664,209$492,837$287,536$1,341,913
54$1,754,010$437,037$217,220$1,383,544
55$1,850,451$375,985$142,029$1,428,090
56$1,954,133$309,344$61,722$1,475,874
57$2,065,710$236,757$0$1,527,255
58$2,185,904$157,850$0$1,586,981
59$2,315,507$72,225$0$1,663,377
60$2,455,388$0$0$1,745,780
61$2,606,505$0$0$1,838,858
62$2,769,905$0$0$1,955,015
63$2,946,746$0$0$2,080,770
64$3,138,294$0$0$2,217,031
65$3,345,947$0$0$2,364,799
66$3,571,238$0$0$2,525,170
67$3,815,854$0$0$2,699,352
68$4,081,653$0$0$2,888,674
69$4,370,675$0$0$3,094,598
70$4,685,167$0$0$3,318,731
71$5,027,602$0$0$3,562,843
72$5,400,697$0$0$3,828,881
73$5,807,448$0$0$4,118,988
74$6,251,147$0$0$4,435,521
75$6,735,420$0$0$4,781,078
76$7,264,259$0$0$5,158,515
77$7,842,057$0$0$5,570,978
78$8,473,651$0$0$6,021,931
79$9,164,367$0$0$6,515,187
80$9,920,067$0$0$7,054,943
81$10,747,208$0$0$7,645,824
82$11,652,899$0$0$8,292,920
83$12,644,969$0$0$9,001,837
84$13,732,040$0$0$9,778,750
85$14,923,606$0$0$10,630,457
86$16,230,126$0$0$11,564,448
87$17,663,116$0$0$12,588,972
88$19,235,263$0$0$13,713,112
89$20,960,540$0$0$14,946,877
90$22,854,338$0$0$16,301,290
91$24,933,613$0$0$17,788,492
92$27,217,040$0$0$19,421,860
93$29,725,192$0$0$21,216,128
94$32,480,734$0$0$23,187,528
95$35,508,635$0$0$25,353,942
96$38,836,399$0$0$27,735,072
97$42,494,331$0$0$30,352,620
98$46,515,815$0$0$33,230,498
99$50,937,633$0$0$36,395,050
100$55,800,309$0$0$39,875,300