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%15.6%
1 years$70,192$69,567$68,957$68,362$67,780$66,222
2 years$34,749$34,101$33,474$32,866$32,276$30,715
3 years$22,936$22,286$21,660$21,058$20,477$18,962
4 years$17,030$16,382$15,763$15,171$14,605$13,147
5 years$13,488$12,844$12,233$11,653$11,102$9,706
6 years$11,127$10,488$9,886$9,319$8,785$7,451
7 years$9,442$8,808$8,215$7,661$7,144$5,874
8 years$8,178$7,550$6,967$6,427$5,927$4,719
9 years$7,196$6,574$6,001$5,474$4,991$3,845
10 years$6,410$5,794$5,232$4,719$4,253$3,167
11 years$5,768$5,158$4,606$4,107$3,658$2,631
12 years$5,234$4,630$4,088$3,602$3,170$2,200
13 years$4,781$4,184$3,652$3,180$2,764$1,850
14 years$4,394$3,803$3,281$2,823$2,423$1,563
15 years$4,059$3,474$2,963$2,518$2,133$1,325
16 years$3,766$3,188$2,686$2,254$1,885$1,127
17 years$3,507$2,936$2,444$2,026$1,672$960
18 years$3,278$2,713$2,231$1,825$1,486$821
19 years$3,073$2,514$2,043$1,649$1,325$702
20 years$2,889$2,336$1,875$1,494$1,183$602
21 years$2,722$2,176$1,724$1,356$1,059$517
22 years$2,571$2,031$1,589$1,233$949$444
23 years$2,433$1,900$1,467$1,123$852$382
24 years$2,307$1,780$1,357$1,024$766$329
25 years$2,191$1,670$1,257$935$689$283
26 years$2,085$1,570$1,166$855$621$244
27 years$1,986$1,478$1,082$783$560$210
28 years$1,894$1,392$1,006$717$505$181
29 years$1,809$1,313$936$658$456$157
30 years$1,730$1,240$872$603$412$135
31 years$1,656$1,173$813$554$373$117
32 years$1,587$1,109$759$509$337$101
33 years$1,522$1,051$708$468$305$87
34 years$1,461$996$662$431$276$75
35 years$1,404$945$619$397$250$65
36 years$1,350$897$579$365$227$56
37 years$1,299$851$542$337$205$49
38 years$1,251$809$507$310$186$42
39 years$1,205$769$475$286$169$36
40 years$1,162$732$446$264$153$31
41 years$1,121$697$418$243$139$27
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$18
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$10
49 years$857$477$253$129$64$9
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 $3,776 every year, while hoping to spend $38,271 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: 52/43/5 Blend
39$850,000$850,000$850,000$850,000
40$940,595$895,545$882,370$988,253
41$995,816$898,707$871,209$1,024,127
42$1,055,386$900,740$858,392$1,058,616
43$1,119,710$901,551$843,822$1,095,189
44$1,189,229$901,036$827,400$1,134,049
45$1,264,432$899,089$809,019$1,175,422
46$1,345,854$895,594$788,571$1,219,557
47$1,434,083$890,430$765,940$1,266,730
48$1,529,766$883,467$741,006$1,317,249
49$1,633,615$874,570$713,642$1,371,452
50$1,746,413$863,593$683,719$1,429,716
51$1,869,021$850,383$651,097$1,492,459
52$2,002,385$834,776$615,633$1,560,143
53$2,147,549$816,600$577,177$1,633,278
54$2,305,658$795,673$535,571$1,712,432
55$2,477,975$771,800$490,652$1,798,233
56$2,665,888$744,778$442,249$1,891,374
57$2,870,925$714,389$390,181$1,992,626
58$3,094,770$680,404$334,262$2,102,838
59$3,339,273$642,581$274,297$2,222,953
60$3,606,474$600,663$210,081$2,354,014
61$3,898,618$554,378$141,402$2,497,173
62$4,218,175$503,441$68,037$2,653,705
63$4,567,866$447,547$0$2,825,021
64$4,950,689$386,377$0$3,013,229
65$5,369,941$319,592$0$3,223,416
66$5,829,258$246,835$0$3,453,869
67$6,332,639$167,727$0$3,706,711
68$6,884,493$81,869$0$3,984,287
69$7,489,672$0$0$4,289,188
70$8,153,523$0$0$4,629,558
71$8,881,933$0$0$5,045,620
72$9,681,389$0$0$5,502,351
73$10,559,035$0$0$6,003,845
74$11,522,740$0$0$6,554,609
75$12,581,173$0$0$7,159,610
76$13,743,885$0$0$7,824,318
77$15,021,396$0$0$8,554,761
78$16,425,295$0$0$9,357,579
79$17,968,351$0$0$10,240,087
80$19,664,630$0$0$11,210,343
81$21,529,631$0$0$12,277,227
82$23,580,426$0$0$13,450,521
83$25,835,828$0$0$14,741,004
84$28,316,563$0$0$16,160,549
85$31,045,464$0$0$17,722,241
86$34,047,693$0$0$19,440,494
87$37,350,971$0$0$21,331,193
88$40,985,841$0$0$23,411,838
89$44,985,957$0$0$25,701,712
90$49,388,402$0$0$28,222,062
91$54,234,032$0$0$30,996,299
92$59,567,870$0$0$34,050,220
93$65,439,521$0$0$37,412,247
94$71,903,646$0$0$41,113,702
95$79,020,474$0$0$45,189,095
96$86,856,372$0$0$49,676,456
97$95,484,470$0$0$54,617,686
98$104,985,350$0$0$60,058,960
99$115,447,806$0$0$66,051,157
100$126,969,681$0$0$72,650,343