Can I retire at age 40 with 853,000?

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 $853,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.5%
1 years$70,440$69,813$69,200$68,603$68,019$65,684
2 years$34,871$34,222$33,592$32,982$32,390$30,062
3 years$23,017$22,364$21,737$21,132$20,550$18,300
4 years$17,090$16,440$15,819$15,224$14,656$12,504
5 years$13,536$12,889$12,276$11,694$11,141$9,091
6 years$11,167$10,525$9,921$9,352$8,816$6,870
7 years$9,475$8,839$8,244$7,688$7,170$5,327
8 years$8,207$7,577$6,992$6,450$5,948$4,207
9 years$7,221$6,597$6,022$5,494$5,009$3,368
10 years$6,433$5,815$5,250$4,736$4,268$2,725
11 years$5,789$5,177$4,622$4,121$3,671$2,222
12 years$5,252$4,646$4,102$3,615$3,181$1,823
13 years$4,798$4,199$3,665$3,192$2,774$1,503
14 years$4,410$3,817$3,293$2,833$2,431$1,244
15 years$4,073$3,487$2,973$2,527$2,141$1,033
16 years$3,779$3,199$2,696$2,262$1,892$861
17 years$3,520$2,946$2,453$2,033$1,678$718
18 years$3,290$2,722$2,239$1,832$1,492$601
19 years$3,084$2,523$2,050$1,655$1,330$503
20 years$2,899$2,344$1,881$1,499$1,188$422
21 years$2,732$2,184$1,730$1,361$1,063$354
22 years$2,580$2,038$1,595$1,237$953$297
23 years$2,442$1,907$1,472$1,127$855$250
24 years$2,315$1,786$1,362$1,028$769$210
25 years$2,199$1,676$1,261$938$692$177
26 years$2,092$1,575$1,170$858$623$149
27 years$1,993$1,483$1,086$785$562$126
28 years$1,901$1,397$1,010$720$507$106
29 years$1,816$1,318$940$660$458$89
30 years$1,736$1,245$875$606$414$75
31 years$1,662$1,177$816$556$374$63
32 years$1,593$1,113$761$511$338$53
33 years$1,528$1,054$711$470$306$45
34 years$1,466$999$664$432$277$38
35 years$1,409$948$621$398$251$32
36 years$1,355$900$581$367$227$27
37 years$1,304$854$544$338$206$23
38 years$1,255$812$509$311$187$19
39 years$1,210$772$477$287$169$16
40 years$1,166$735$447$265$154$14
41 years$1,125$699$419$244$139$12
42 years$1,086$666$393$225$127$10
43 years$1,049$635$369$208$115$8
44 years$1,013$605$346$192$104$7
45 years$980$577$325$177$95$6
46 years$948$550$306$164$86$5
47 years$917$525$287$151$78$4
48 years$888$501$270$140$71$4
49 years$860$479$254$129$64$3
50 years$833$457$238$120$58$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $853,000, adding $5,812 every year, while hoping to spend $54,252 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: 76/18/6 Blend
39$853,000$853,000$853,000$853,000
40$946,001$900,792$887,571$1,016,891
41$984,769$887,207$859,580$1,050,689
42$1,025,674$871,138$828,834$1,080,167
43$1,068,875$852,407$795,183$1,110,891
44$1,114,548$830,822$758,469$1,142,962
45$1,162,884$806,185$718,530$1,176,492
46$1,214,092$778,281$675,195$1,211,606
47$1,268,400$746,888$628,284$1,248,441
48$1,326,057$711,765$577,612$1,287,149
49$1,387,336$672,663$522,983$1,327,900
50$1,452,535$629,314$464,193$1,370,881
51$1,521,980$581,438$401,031$1,416,298
52$1,596,030$528,736$333,273$1,464,382
53$1,675,075$470,894$260,688$1,515,387
54$1,759,544$407,579$183,032$1,569,595
55$1,849,909$338,441$100,055$1,627,317
56$1,946,683$263,108$11,490$1,688,899
57$2,050,433$181,189$0$1,754,724
58$2,161,779$92,269$0$1,830,531
59$2,281,401$0$0$1,912,604
60$2,410,048$0$0$2,001,556
61$2,548,538$0$0$2,117,012
62$2,697,774$0$0$2,241,450
63$2,858,744$0$0$2,375,699
64$3,032,535$0$0$2,520,669
65$3,220,343$0$0$2,677,358
66$3,423,479$0$0$2,846,867
67$3,643,387$0$0$3,030,403
68$3,881,653$0$0$3,229,294
69$4,140,021$0$0$3,445,000
70$4,420,410$0$0$3,679,127
71$4,724,929$0$0$3,933,442
72$5,055,899$0$0$4,209,886
73$5,415,871$0$0$4,510,598
74$5,807,655$0$0$4,837,928
75$6,234,342$0$0$5,194,464
76$6,699,331$0$0$5,583,053
77$7,206,365$0$0$6,006,830
78$7,759,563$0$0$6,469,242
79$8,363,459$0$0$6,974,086
80$9,023,044$0$0$7,525,542
81$9,743,811$0$0$8,128,209
82$10,531,810$0$0$8,787,152
83$11,393,700$0$0$9,507,948
84$12,336,814$0$0$10,296,738
85$13,369,225$0$0$11,160,282
86$14,499,825$0$0$12,106,025
87$15,738,404$0$0$13,142,168
88$17,095,747$0$0$14,277,739
89$18,583,726$0$0$15,522,682
90$20,215,423$0$0$16,887,952
91$22,005,241$0$0$18,385,610
92$23,969,048$0$0$20,028,945
93$26,124,321$0$0$21,832,592
94$28,490,309$0$0$23,812,673
95$31,088,220$0$0$25,986,946
96$33,941,413$0$0$28,374,975
97$37,075,620$0$0$30,998,310
98$40,519,190$0$0$33,880,691
99$44,303,353$0$0$37,048,272
100$48,462,514$0$0$40,529,867