Can I retire at age 40 with 849,000?

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 $849,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.6%
1 years$70,110$69,485$68,876$68,281$67,700$67,246
2 years$34,708$34,061$33,435$32,827$32,238$31,780
3 years$22,909$22,259$21,635$21,033$20,453$20,005
4 years$17,010$16,363$15,744$15,153$14,587$14,153
5 years$13,472$12,829$12,218$11,639$11,089$10,670
6 years$11,114$10,476$9,874$9,308$8,774$8,371
7 years$9,431$8,797$8,206$7,652$7,136$6,748
8 years$8,168$7,541$6,959$6,419$5,920$5,548
9 years$7,187$6,566$5,994$5,468$4,985$4,629
10 years$6,403$5,787$5,225$4,713$4,248$3,907
11 years$5,761$5,152$4,600$4,102$3,653$3,327
12 years$5,227$4,624$4,083$3,598$3,166$2,855
13 years$4,776$4,179$3,648$3,177$2,761$2,464
14 years$4,389$3,799$3,277$2,820$2,420$2,138
15 years$4,054$3,470$2,959$2,515$2,131$1,863
16 years$3,761$3,184$2,683$2,252$1,883$1,629
17 years$3,503$2,932$2,441$2,023$1,670$1,428
18 years$3,274$2,709$2,229$1,823$1,485$1,256
19 years$3,070$2,511$2,040$1,647$1,323$1,107
20 years$2,885$2,333$1,872$1,492$1,182$977
21 years$2,719$2,174$1,722$1,354$1,058$865
22 years$2,568$2,029$1,587$1,231$948$766
23 years$2,431$1,898$1,466$1,121$851$679
24 years$2,305$1,778$1,355$1,023$765$603
25 years$2,189$1,668$1,255$934$688$536
26 years$2,082$1,568$1,164$854$620$477
27 years$1,984$1,476$1,081$782$559$425
28 years$1,892$1,391$1,005$716$504$379
29 years$1,807$1,312$935$657$455$337
30 years$1,728$1,239$871$603$412$301
31 years$1,654$1,171$812$554$372$269
32 years$1,585$1,108$758$509$337$240
33 years$1,520$1,049$708$468$305$214
34 years$1,460$995$661$430$276$191
35 years$1,402$943$618$396$250$171
36 years$1,348$895$578$365$226$153
37 years$1,298$850$541$336$205$137
38 years$1,249$808$507$310$186$122
39 years$1,204$769$475$286$169$109
40 years$1,161$731$445$264$153$98
41 years$1,120$696$417$243$139$88
42 years$1,081$663$391$224$126$78
43 years$1,044$632$367$207$114$70
44 years$1,009$602$345$191$104$63
45 years$975$574$324$177$94$56
46 years$943$548$304$163$86$50
47 years$913$523$286$151$78$45
48 years$884$499$268$139$71$40
49 years$856$476$252$129$64$36
50 years$829$455$237$119$58$32

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $849,000, adding $4,908 every year, while hoping to spend $52,830 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: 52/24/24 Blend
39$849,000$849,000$849,000$849,000
40$940,661$895,664$882,504$983,056
41$980,397$883,340$855,857$1,000,578
42$1,022,416$868,643$826,547$1,013,815
43$1,066,895$851,398$794,429$1,027,128
44$1,114,027$831,425$759,350$1,040,544
45$1,164,023$808,530$721,154$1,054,097
46$1,217,113$782,509$679,673$1,067,826
47$1,273,552$753,144$634,735$1,081,779
48$1,333,614$720,209$586,158$1,096,012
49$1,397,603$683,459$533,755$1,110,590
50$1,465,849$642,639$477,326$1,125,590
51$1,538,716$597,479$416,667$1,141,100
52$1,616,601$547,691$351,561$1,157,224
53$1,699,939$492,973$281,783$1,174,078
54$1,789,209$433,005$207,099$1,191,798
55$1,884,935$367,448$127,263$1,210,539
56$1,987,691$295,946$42,020$1,230,476
57$2,098,109$218,121$0$1,251,810
58$2,216,881$133,574$0$1,287,305
59$2,344,768$41,884$0$1,336,980
60$2,482,605$0$0$1,390,430
61$2,631,310$0$0$1,463,219
62$2,791,890$0$0$1,553,833
63$2,965,453$0$0$1,651,841
64$3,153,217$0$0$1,757,942
65$3,356,519$0$0$1,872,899
66$3,576,830$0$0$1,997,555
67$3,815,769$0$0$2,132,835
68$4,075,113$0$0$2,279,756
69$4,356,820$0$0$2,439,439
70$4,663,042$0$0$2,613,115
71$4,996,145$0$0$2,802,138
72$5,358,736$0$0$3,008,000
73$5,753,680$0$0$3,232,341
74$6,184,131$0$0$3,476,968
75$6,653,561$0$0$3,743,866
76$7,165,790$0$0$4,035,224
77$7,725,024$0$0$4,353,449
78$8,335,892$0$0$4,701,191
79$9,003,490$0$0$5,081,370
80$9,733,429$0$0$5,497,198
81$10,531,887$0$0$5,952,212
82$11,405,666$0$0$6,450,309
83$12,362,255$0$0$6,995,776
84$13,409,903$0$0$7,593,339
85$14,557,691$0$0$8,248,199
86$15,815,624$0$0$8,966,085
87$17,194,716$0$0$9,753,308
88$18,707,101$0$0$10,616,817
89$20,366,144$0$0$11,564,267
90$22,186,563$0$0$12,604,090
91$24,184,571$0$0$13,745,573
92$26,378,027$0$0$14,998,947
93$28,786,606$0$0$16,375,482
94$31,431,977$0$0$17,887,593
95$34,338,013$0$0$19,548,956
96$37,531,014$0$0$21,374,639
97$41,039,953$0$0$23,381,239
98$44,896,749$0$0$25,587,044
99$49,136,565$0$0$28,012,199
100$53,798,143$0$0$30,678,902