Can I retire at age 40 with 850,000?

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 $850,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.7%
1 years$70,192$69,567$68,957$68,362$67,780$66,195
2 years$34,749$34,101$33,474$32,866$32,276$30,689
3 years$22,936$22,286$21,660$21,058$20,477$18,937
4 years$17,030$16,382$15,763$15,171$14,605$13,122
5 years$13,488$12,844$12,233$11,653$11,102$9,683
6 years$11,127$10,488$9,886$9,319$8,785$7,430
7 years$9,442$8,808$8,215$7,661$7,144$5,854
8 years$8,178$7,550$6,967$6,427$5,927$4,700
9 years$7,196$6,574$6,001$5,474$4,991$3,827
10 years$6,410$5,794$5,232$4,719$4,253$3,151
11 years$5,768$5,158$4,606$4,107$3,658$2,615
12 years$5,234$4,630$4,088$3,602$3,170$2,186
13 years$4,781$4,184$3,652$3,180$2,764$1,837
14 years$4,394$3,803$3,281$2,823$2,423$1,550
15 years$4,059$3,474$2,963$2,518$2,133$1,313
16 years$3,766$3,188$2,686$2,254$1,885$1,116
17 years$3,507$2,936$2,444$2,026$1,672$951
18 years$3,278$2,713$2,231$1,825$1,486$812
19 years$3,073$2,514$2,043$1,649$1,325$694
20 years$2,889$2,336$1,875$1,494$1,183$595
21 years$2,722$2,176$1,724$1,356$1,059$510
22 years$2,571$2,031$1,589$1,233$949$438
23 years$2,433$1,900$1,467$1,123$852$376
24 years$2,307$1,780$1,357$1,024$766$324
25 years$2,191$1,670$1,257$935$689$279
26 years$2,085$1,570$1,166$855$621$240
27 years$1,986$1,478$1,082$783$560$207
28 years$1,894$1,392$1,006$717$505$178
29 years$1,809$1,313$936$658$456$154
30 years$1,730$1,240$872$603$412$133
31 years$1,656$1,173$813$554$373$114
32 years$1,587$1,109$759$509$337$99
33 years$1,522$1,051$708$468$305$85
34 years$1,461$996$662$431$276$74
35 years$1,404$945$619$397$250$63
36 years$1,350$897$579$365$227$55
37 years$1,299$851$542$337$205$47
38 years$1,251$809$507$310$186$41
39 years$1,205$769$475$286$169$35
40 years$1,162$732$446$264$153$31
41 years$1,121$697$418$243$139$26
42 years$1,082$664$392$225$126$23
43 years$1,045$632$368$207$114$20
44 years$1,010$603$345$192$104$17
45 years$976$575$324$177$94$15
46 years$944$548$304$163$86$13
47 years$914$523$286$151$78$11
48 years$885$500$269$139$71$9
49 years$857$477$253$129$64$8
50 years$830$456$238$119$58$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $850,000, adding $3,531 every year, while hoping to spend $27,970 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: 48/26/26 Blend
39$850,000$850,000$850,000$850,000
40$940,342$895,292$882,117$978,363
41$1,006,497$909,402$881,908$1,019,500
42$1,078,463$923,265$880,755$1,061,104
43$1,156,802$936,841$878,596$1,105,733
44$1,242,134$950,084$875,367$1,153,685
45$1,335,141$962,948$871,001$1,205,289
46$1,436,573$975,381$865,428$1,260,911
47$1,547,257$987,328$858,574$1,320,952
48$1,668,102$998,731$850,360$1,385,857
49$1,800,108$1,009,529$840,707$1,456,116
50$1,944,377$1,019,654$829,529$1,532,271
51$2,102,123$1,029,036$816,737$1,614,921
52$2,274,680$1,037,599$802,238$1,704,726
53$2,463,519$1,045,264$785,935$1,802,417
54$2,670,260$1,051,943$767,726$1,908,800
55$2,896,686$1,057,548$747,504$2,024,763
56$3,144,760$1,061,979$725,157$2,151,290
57$3,416,644$1,065,136$700,569$2,289,465
58$3,714,722$1,066,907$673,618$2,440,485
59$4,041,614$1,067,176$644,175$2,605,672
60$4,400,212$1,065,821$612,108$2,786,485
61$4,793,696$1,062,709$577,277$2,984,533
62$5,225,573$1,057,702$539,535$3,201,594
63$5,699,704$1,050,651$498,731$3,439,630
64$6,220,341$1,041,400$454,706$3,700,803
65$6,792,170$1,029,783$407,293$3,987,504
66$7,420,352$1,015,623$356,318$4,302,366
67$8,110,573$998,734$301,600$4,648,299
68$8,869,097$978,917$242,949$5,028,511
69$9,702,825$955,964$180,168$5,446,542
70$10,619,359$929,652$113,049$5,906,298
71$11,627,075$899,747$41,378$6,412,086
72$12,735,201$865,999$0$6,968,661
73$13,953,904$828,146$0$7,591,005
74$15,294,386$785,909$0$8,288,045
75$16,768,989$738,993$0$9,054,738
76$18,391,310$687,088$0$9,898,190
77$20,176,332$629,864$0$10,826,238
78$22,140,563$566,972$0$11,847,517
79$24,302,193$498,046$0$12,971,548
80$26,681,262$422,696$0$14,208,825
81$29,299,855$340,512$0$15,570,918
82$32,182,302$251,059$0$17,070,577
83$35,355,416$153,880$0$18,721,860
84$38,848,739$48,491$0$20,540,260
85$42,694,823$0$0$22,542,857
86$46,929,539$0$0$24,767,251
87$51,592,411$0$0$27,231,940
88$56,726,991$0$0$29,946,089
89$62,381,272$0$0$32,935,080
90$68,608,135$0$0$36,226,885
91$75,465,854$0$0$39,852,326
92$83,018,640$0$0$43,845,366
93$91,337,251$0$0$48,243,431
94$100,499,658$0$0$53,087,762
95$110,591,780$0$0$58,423,806
96$121,708,294$0$0$64,301,641
97$133,953,532$0$0$70,776,450
98$147,442,460$0$0$77,909,046
99$162,301,767$0$0$85,766,439
100$178,671,060$0$0$94,422,472