Can I retire at age 40 with 845,000?

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 $845,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.1%
1 years$69,779$69,158$68,551$67,959$67,381$65,172
2 years$34,544$33,901$33,277$32,673$32,086$29,882
3 years$22,801$22,155$21,533$20,934$20,357$18,226
4 years$16,930$16,286$15,670$15,082$14,519$12,478
5 years$13,409$12,768$12,161$11,584$11,037$9,092
6 years$11,062$10,426$9,828$9,264$8,733$6,885
7 years$9,386$8,756$8,167$7,616$7,102$5,351
8 years$8,130$7,506$6,926$6,389$5,892$4,237
9 years$7,153$6,535$5,965$5,442$4,962$3,400
10 years$6,373$5,760$5,201$4,691$4,228$2,757
11 years$5,734$5,128$4,579$4,083$3,636$2,254
12 years$5,203$4,603$4,064$3,581$3,151$1,854
13 years$4,753$4,159$3,630$3,162$2,748$1,533
14 years$4,368$3,781$3,262$2,807$2,409$1,273
15 years$4,035$3,454$2,945$2,503$2,121$1,060
16 years$3,744$3,169$2,670$2,241$1,874$885
17 years$3,487$2,918$2,430$2,014$1,662$741
18 years$3,259$2,697$2,218$1,815$1,478$622
19 years$3,055$2,499$2,031$1,640$1,317$522
20 years$2,872$2,322$1,864$1,485$1,176$439
21 years$2,706$2,163$1,714$1,348$1,053$370
22 years$2,556$2,019$1,580$1,225$944$312
23 years$2,419$1,889$1,459$1,116$847$263
24 years$2,294$1,770$1,349$1,018$761$222
25 years$2,179$1,661$1,249$930$685$187
26 years$2,072$1,561$1,159$850$617$158
27 years$1,974$1,469$1,076$778$556$134
28 years$1,883$1,384$1,000$713$502$113
29 years$1,799$1,306$931$654$453$95
30 years$1,720$1,233$867$600$410$81
31 years$1,647$1,166$808$551$370$68
32 years$1,578$1,103$754$506$335$58
33 years$1,513$1,045$704$466$303$49
34 years$1,453$990$658$428$274$41
35 years$1,396$939$615$394$249$35
36 years$1,342$891$575$363$225$30
37 years$1,291$846$539$335$204$25
38 years$1,244$804$504$308$185$21
39 years$1,198$765$473$284$168$18
40 years$1,155$728$443$262$152$15
41 years$1,115$693$415$242$138$13
42 years$1,076$660$390$223$125$11
43 years$1,039$629$366$206$114$9
44 years$1,004$599$343$190$103$8
45 years$971$571$322$176$94$7
46 years$939$545$303$162$85$6
47 years$908$520$284$150$77$5
48 years$879$497$267$139$70$4
49 years$852$474$251$128$64$3
50 years$825$453$236$118$58$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $845,000, adding $4,124 every year, while hoping to spend $57,603 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: 52/38/10 Blend
39$845,000$845,000$845,000$845,000
40$935,444$890,659$877,561$981,458
41$969,570$873,012$845,671$995,600
42$1,005,246$852,570$810,781$1,004,434
43$1,042,570$829,135$772,731$1,012,697
44$1,081,647$802,497$731,352$1,020,349
45$1,122,591$772,435$686,468$1,027,349
46$1,165,526$738,715$637,895$1,033,654
47$1,210,585$701,087$585,440$1,039,224
48$1,257,915$659,291$528,903$1,044,016
49$1,307,674$613,048$468,073$1,047,990
50$1,360,034$562,064$402,730$1,051,104
51$1,415,182$506,031$332,647$1,053,318
52$1,473,323$444,619$257,583$1,054,595
53$1,534,679$377,482$177,289$1,054,897
54$1,599,493$304,254$91,504$1,054,192
55$1,668,027$224,549$0$1,052,449
56$1,740,572$137,959$0$1,049,645
57$1,817,443$44,051$0$1,056,174
58$1,898,983$0$0$1,062,278
59$1,985,569$0$0$1,092,079
60$2,077,614$0$0$1,143,383
61$2,175,566$0$0$1,198,028
62$2,279,920$0$0$1,256,294
63$2,391,215$0$0$1,318,490
64$2,510,042$0$0$1,384,952
65$2,637,050$0$0$1,456,050
66$2,772,948$0$0$1,532,190
67$2,918,517$0$0$1,613,817
68$3,074,609$0$0$1,701,418
69$3,242,162$0$0$1,795,528
70$3,422,205$0$0$1,896,735
71$3,615,866$0$0$2,005,685
72$3,824,386$0$0$2,123,085
73$4,049,125$0$0$2,249,714
74$4,291,580$0$0$2,386,426
75$4,553,392$0$0$2,534,161
76$4,836,367$0$0$2,693,951
77$5,142,489$0$0$2,866,931
78$5,473,939$0$0$3,054,347
79$5,833,116$0$0$3,257,573
80$6,222,654$0$0$3,478,115
81$6,645,454$0$0$3,717,634
82$7,104,705$0$0$3,977,952
83$7,603,913$0$0$4,261,079
84$8,146,939$0$0$4,569,222
85$8,738,027$0$0$4,904,811
86$9,381,849$0$0$5,270,521
87$10,083,546$0$0$5,669,293
88$10,848,776$0$0$6,104,367
89$11,683,765$0$0$6,579,309
90$12,595,369$0$0$7,098,041
91$13,591,131$0$0$7,664,885
92$14,679,359$0$0$8,284,597
93$15,869,197$0$0$8,962,413
94$17,170,714$0$0$9,704,099
95$18,594,996$0$0$10,516,004
96$20,154,249$0$0$11,405,119
97$21,861,918$0$0$12,379,143
98$23,732,804$0$0$13,446,555
99$25,783,211$0$0$14,616,692
100$28,031,095$0$0$15,899,838