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%14.2%
1 years$70,192$69,567$68,957$68,362$67,780$66,603
2 years$34,749$34,101$33,474$32,866$32,276$31,094
3 years$22,936$22,286$21,660$21,058$20,477$19,327
4 years$17,030$16,382$15,763$15,171$14,605$13,495
5 years$13,488$12,844$12,233$11,653$11,102$10,036
6 years$11,127$10,488$9,886$9,319$8,785$7,764
7 years$9,442$8,808$8,215$7,661$7,144$6,169
8 years$8,178$7,550$6,967$6,427$5,927$4,996
9 years$7,196$6,574$6,001$5,474$4,991$4,105
10 years$6,410$5,794$5,232$4,719$4,253$3,411
11 years$5,768$5,158$4,606$4,107$3,658$2,859
12 years$5,234$4,630$4,088$3,602$3,170$2,412
13 years$4,781$4,184$3,652$3,180$2,764$2,048
14 years$4,394$3,803$3,281$2,823$2,423$1,746
15 years$4,059$3,474$2,963$2,518$2,133$1,495
16 years$3,766$3,188$2,686$2,254$1,885$1,283
17 years$3,507$2,936$2,444$2,026$1,672$1,105
18 years$3,278$2,713$2,231$1,825$1,486$954
19 years$3,073$2,514$2,043$1,649$1,325$825
20 years$2,889$2,336$1,875$1,494$1,183$715
21 years$2,722$2,176$1,724$1,356$1,059$620
22 years$2,571$2,031$1,589$1,233$949$538
23 years$2,433$1,900$1,467$1,123$852$468
24 years$2,307$1,780$1,357$1,024$766$407
25 years$2,191$1,670$1,257$935$689$355
26 years$2,085$1,570$1,166$855$621$309
27 years$1,986$1,478$1,082$783$560$270
28 years$1,894$1,392$1,006$717$505$235
29 years$1,809$1,313$936$658$456$205
30 years$1,730$1,240$872$603$412$179
31 years$1,656$1,173$813$554$373$157
32 years$1,587$1,109$759$509$337$137
33 years$1,522$1,051$708$468$305$120
34 years$1,461$996$662$431$276$105
35 years$1,404$945$619$397$250$92
36 years$1,350$897$579$365$227$80
37 years$1,299$851$542$337$205$70
38 years$1,251$809$507$310$186$61
39 years$1,205$769$475$286$169$54
40 years$1,162$732$446$264$153$47
41 years$1,121$697$418$243$139$41
42 years$1,082$664$392$225$126$36
43 years$1,045$632$368$207$114$31
44 years$1,010$603$345$192$104$28
45 years$976$575$324$177$94$24
46 years$944$548$304$163$86$21
47 years$914$523$286$151$78$18
48 years$885$500$269$139$71$16
49 years$857$477$253$129$64$14
50 years$830$456$238$119$58$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $850,000, adding $5,392 every year, while hoping to spend $57,093 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: 40/34/26 Blend
39$850,000$850,000$850,000$850,000
40$942,262$897,212$884,037$972,530
41$977,626$880,429$852,906$978,155
42$1,014,684$860,910$818,818$978,495
43$1,053,548$838,460$781,614$977,754
44$1,094,340$812,875$741,129$975,865
45$1,137,193$783,936$697,187$972,765
46$1,182,250$751,413$649,606$968,384
47$1,229,669$715,062$598,198$962,655
48$1,279,620$674,624$542,762$955,508
49$1,332,288$629,828$483,091$946,870
50$1,387,876$580,384$418,969$936,671
51$1,446,605$525,988$350,170$924,837
52$1,508,714$466,317$276,456$911,298
53$1,574,467$401,031$197,582$895,981
54$1,644,151$329,769$113,289$878,815
55$1,718,078$252,152$23,308$859,730
56$1,796,593$167,778$0$838,659
57$1,880,068$76,222$0$835,711
58$1,968,916$0$0$838,863
59$2,063,584$0$0$850,262
60$2,164,563$0$0$892,904
61$2,272,394$0$0$938,507
62$2,387,665$0$0$987,328
63$2,511,023$0$0$1,039,652
64$2,643,178$0$0$1,095,789
65$2,784,908$0$0$1,156,080
66$2,937,067$0$0$1,220,899
67$3,100,590$0$0$1,290,657
68$3,276,508$0$0$1,365,805
69$3,465,948$0$0$1,446,838
70$3,670,150$0$0$1,534,300
71$3,890,478$0$0$1,628,791
72$4,128,428$0$0$1,730,966
73$4,385,643$0$0$1,841,548
74$4,663,932$0$0$1,961,331
75$4,965,282$0$0$2,091,188
76$5,291,877$0$0$2,232,079
77$5,646,118$0$0$2,385,061
78$6,030,648$0$0$2,551,294
79$6,448,372$0$0$2,732,055
80$6,902,486$0$0$2,928,751
81$7,396,505$0$0$3,142,928
82$7,934,298$0$0$3,376,288
83$8,520,121$0$0$3,630,702
84$9,158,659$0$0$3,908,233
85$9,855,067$0$0$4,211,149
86$10,615,018$0$0$4,541,947
87$11,444,758$0$0$4,903,376
88$12,351,162$0$0$5,298,463
89$13,341,800$0$0$5,730,539
90$14,425,003$0$0$6,203,274
91$15,609,947$0$0$6,720,706
92$16,906,733$0$0$7,287,284
93$18,326,486$0$0$7,907,907
94$19,881,454$0$0$8,587,970
95$21,585,127$0$0$9,333,412
96$23,452,362$0$0$10,150,777
97$25,499,519$0$0$11,047,273
98$27,744,619$0$0$12,030,837
99$30,207,511$0$0$13,110,211
100$32,910,055$0$0$14,295,027