Can I retire at age 40 with 840,000?

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 $840,000?

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$69,366$68,749$68,146$67,557$66,983$65,873
2 years$34,340$33,700$33,080$32,479$31,897$30,782
3 years$22,666$22,023$21,405$20,810$20,236$19,151
4 years$16,830$16,190$15,578$14,992$14,433$13,386
5 years$13,329$12,693$12,089$11,516$10,972$9,966
6 years$10,996$10,365$9,770$9,209$8,681$7,718
7 years$9,331$8,704$8,119$7,571$7,060$6,139
8 years$8,082$7,461$6,885$6,351$5,857$4,978
9 years$7,111$6,496$5,930$5,410$4,933$4,095
10 years$6,335$5,726$5,170$4,663$4,203$3,407
11 years$5,700$5,098$4,552$4,059$3,615$2,859
12 years$5,172$4,575$4,039$3,560$3,132$2,416
13 years$4,725$4,135$3,609$3,143$2,731$2,053
14 years$4,342$3,758$3,243$2,790$2,394$1,753
15 years$4,011$3,433$2,928$2,488$2,108$1,502
16 years$3,722$3,150$2,654$2,228$1,863$1,292
17 years$3,466$2,901$2,415$2,002$1,652$1,114
18 years$3,240$2,681$2,205$1,804$1,469$963
19 years$3,037$2,484$2,019$1,630$1,309$834
20 years$2,855$2,309$1,853$1,476$1,169$724
21 years$2,690$2,150$1,704$1,340$1,047$629
22 years$2,541$2,007$1,570$1,218$938$547
23 years$2,405$1,877$1,450$1,109$842$476
24 years$2,280$1,759$1,341$1,012$757$415
25 years$2,166$1,651$1,242$924$681$362
26 years$2,060$1,551$1,152$845$613$316
27 years$1,963$1,460$1,070$773$553$276
28 years$1,872$1,376$994$709$499$241
29 years$1,788$1,298$925$650$451$211
30 years$1,710$1,226$862$596$407$185
31 years$1,637$1,159$804$548$368$162
32 years$1,568$1,096$750$503$333$141
33 years$1,504$1,038$700$463$301$124
34 years$1,444$984$654$426$273$108
35 years$1,387$933$612$392$247$95
36 years$1,334$886$572$361$224$83
37 years$1,284$841$535$333$203$73
38 years$1,236$800$501$307$184$64
39 years$1,191$760$470$283$167$56
40 years$1,148$723$440$261$151$49
41 years$1,108$689$413$241$137$43
42 years$1,069$656$387$222$125$38
43 years$1,033$625$363$205$113$33
44 years$998$596$341$189$103$29
45 years$965$568$320$175$93$25
46 years$933$542$301$161$85$22
47 years$903$517$283$149$77$20
48 years$874$494$266$138$70$17
49 years$847$471$250$127$63$15
50 years$820$450$235$118$58$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $840,000, adding $2,250 every year, while hoping to spend $35,279 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: 51/31/18 Blend
39$840,000$840,000$840,000$840,000
40$928,001$883,481$870,461$970,616
41$985,120$889,235$862,085$1,005,950
42$1,046,884$894,088$852,246$1,040,497
43$1,113,727$897,960$840,857$1,077,294
44$1,186,131$900,763$827,829$1,116,567
45$1,264,622$902,406$813,067$1,158,563
46$1,349,780$902,791$796,472$1,203,560
47$1,442,244$901,814$777,940$1,251,863
48$1,542,715$899,365$757,363$1,303,809
49$1,651,965$895,327$734,628$1,359,775
50$1,770,843$889,576$709,615$1,420,174
51$1,900,283$881,980$682,202$1,485,467
52$2,041,314$872,399$652,258$1,556,161
53$2,195,067$860,685$619,647$1,632,820
54$2,362,788$846,682$584,229$1,716,065
55$2,545,846$830,224$545,855$1,806,586
56$2,745,751$811,133$504,369$1,905,145
57$2,964,163$789,225$459,612$2,012,584
58$3,202,911$764,300$411,412$2,129,836
59$3,464,009$736,152$359,595$2,257,931
60$3,749,672$704,557$303,976$2,398,010
61$4,062,341$669,283$244,361$2,551,331
62$4,404,704$630,082$180,551$2,719,289
63$4,779,719$586,692$112,336$2,903,421
64$5,190,648$538,837$39,496$3,105,430
65$5,641,077$486,223$0$3,327,195
66$6,134,962$428,543$0$3,578,136
67$6,676,656$365,469$0$3,861,778
68$7,270,954$296,656$0$4,173,110
69$7,923,138$221,740$0$4,514,980
70$8,639,028$140,334$0$4,890,535
71$9,425,032$52,034$0$5,303,242
72$10,288,210$0$0$5,756,931
73$11,236,340$0$0$6,270,695
74$12,277,989$0$0$6,854,725
75$13,422,596$0$0$7,496,576
76$14,680,559$0$0$8,202,090
77$16,063,333$0$0$8,977,703
78$17,583,539$0$0$9,830,508
79$19,255,081$0$0$10,768,316
80$21,093,278$0$0$11,799,737
81$23,115,007$0$0$12,934,253
82$25,338,865$0$0$14,182,315
83$27,785,339$0$0$15,555,435
84$30,477,004$0$0$17,066,300
85$33,438,731$0$0$18,728,885
86$36,697,927$0$0$20,558,591
87$40,284,786$0$0$22,572,387
88$44,232,581$0$0$24,788,970
89$48,577,972$0$0$27,228,941
90$53,361,352$0$0$29,915,002
91$58,627,234$0$0$32,872,166
92$64,424,660$0$0$36,127,993
93$70,807,673$0$0$39,712,856
94$77,835,822$0$0$43,660,219
95$85,574,724$0$0$48,006,957
96$94,096,683$0$0$52,793,704
97$103,481,372$0$0$58,065,236
98$113,816,585$0$0$63,870,891
99$125,199,062$0$0$70,265,037
100$137,735,408$0$0$77,307,585