Can I retire at age 40 with 855,000?

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 $855,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$70,605$69,976$69,363$68,764$68,179$66,129
2 years$34,953$34,302$33,671$33,059$32,466$30,418
3 years$23,071$22,417$21,787$21,182$20,598$18,616
4 years$17,130$16,479$15,856$15,260$14,691$12,790
5 years$13,567$12,920$12,305$11,721$11,168$9,353
6 years$11,193$10,550$9,944$9,374$8,836$7,110
7 years$9,497$8,860$8,264$7,707$7,186$5,548
8 years$8,226$7,594$7,008$6,465$5,962$4,411
9 years$7,238$6,612$6,036$5,507$5,021$3,555
10 years$6,448$5,828$5,262$4,747$4,278$2,896
11 years$5,802$5,189$4,633$4,131$3,679$2,378
12 years$5,264$4,657$4,112$3,624$3,188$1,965
13 years$4,810$4,209$3,673$3,199$2,780$1,633
14 years$4,420$3,826$3,301$2,840$2,437$1,362
15 years$4,083$3,495$2,980$2,533$2,146$1,140
16 years$3,788$3,206$2,702$2,268$1,897$957
17 years$3,528$2,953$2,459$2,037$1,682$805
18 years$3,297$2,729$2,244$1,836$1,495$679
19 years$3,091$2,529$2,055$1,659$1,333$573
20 years$2,906$2,350$1,886$1,503$1,190$485
21 years$2,738$2,189$1,734$1,364$1,065$410
22 years$2,586$2,043$1,599$1,240$955$348
23 years$2,448$1,911$1,476$1,129$857$295
24 years$2,321$1,790$1,365$1,030$770$250
25 years$2,204$1,680$1,264$941$693$212
26 years$2,097$1,579$1,173$860$624$180
27 years$1,998$1,486$1,089$787$563$153
28 years$1,906$1,400$1,012$721$508$130
29 years$1,820$1,321$942$661$459$111
30 years$1,740$1,248$877$607$414$94
31 years$1,666$1,179$818$557$375$80
32 years$1,596$1,116$763$512$339$68
33 years$1,531$1,057$713$471$307$58
34 years$1,470$1,002$666$433$278$49
35 years$1,412$950$622$399$252$42
36 years$1,358$902$582$368$228$36
37 years$1,307$856$545$339$207$31
38 years$1,258$814$510$312$187$26
39 years$1,212$774$478$288$170$22
40 years$1,169$736$448$265$154$19
41 years$1,128$701$420$245$140$16
42 years$1,089$668$394$226$127$14
43 years$1,051$636$370$209$115$12
44 years$1,016$606$347$193$104$10
45 years$982$578$326$178$95$8
46 years$950$552$306$164$86$7
47 years$919$526$288$152$78$6
48 years$890$502$270$140$71$5
49 years$862$480$254$130$64$4
50 years$835$458$239$120$59$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $855,000, adding $2,734 every year, while hoping to spend $35,360 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: 48/32/20 Blend
39$855,000$855,000$855,000$855,000
40$945,030$899,715$886,463$984,930
41$1,003,800$906,178$878,536$1,019,434
42$1,067,380$911,773$869,159$1,053,089
43$1,136,223$916,420$858,246$1,088,895
44$1,210,826$920,033$845,706$1,127,068
45$1,291,738$922,523$831,445$1,167,849
46$1,379,562$923,793$815,365$1,211,502
47$1,474,960$923,741$797,362$1,258,324
48$1,578,661$922,259$777,329$1,308,641
49$1,691,467$919,233$755,152$1,362,816
50$1,814,260$914,539$730,713$1,421,250
51$1,948,011$908,048$703,889$1,484,387
52$2,093,789$899,623$674,550$1,552,721
53$2,252,770$889,119$642,561$1,626,796
54$2,426,247$876,380$607,782$1,707,216
55$2,615,645$861,244$570,063$1,794,649
56$2,822,532$843,536$529,252$1,889,835
57$3,048,635$823,074$485,186$1,993,592
58$3,295,853$799,662$437,697$2,106,825
59$3,566,280$773,095$386,610$2,230,535
60$3,862,220$743,155$331,740$2,365,831
61$4,186,208$709,612$272,896$2,513,938
62$4,541,040$672,222$209,877$2,676,210
63$4,929,792$630,727$142,473$2,854,144
64$5,355,851$584,853$70,467$3,049,398
65$5,822,951$534,313$0$3,263,799
66$6,335,199$478,802$0$3,500,733
67$6,897,124$417,998$0$3,777,210
68$7,513,710$351,560$0$4,080,698
69$8,190,451$279,128$0$4,413,982
70$8,933,395$200,323$0$4,780,134
71$9,749,205$114,743$0$5,182,544
72$10,645,224$21,965$0$5,624,951
73$11,629,537$0$0$6,111,484
74$12,711,052$0$0$6,674,322
75$13,899,584$0$0$7,301,454
76$15,205,945$0$0$7,990,864
77$16,642,045$0$0$8,748,851
78$18,221,008$0$0$9,582,354
79$19,957,292$0$0$10,499,020
80$21,866,825$0$0$11,507,273
81$23,967,158$0$0$12,616,394
82$26,277,628$0$0$13,836,610
83$28,819,539$0$0$15,179,188
84$31,616,365$0$0$16,656,543
85$34,693,970$0$0$18,282,355
86$38,080,852$0$0$20,071,695
87$41,808,411$0$0$22,041,171
88$45,911,245$0$0$24,209,081
89$50,427,478$0$0$26,595,589
90$55,399,114$0$0$29,222,913
91$60,872,441$0$0$32,115,532
92$66,898,459$0$0$35,300,422
93$73,533,368$0$0$38,807,309
94$80,839,092$0$0$42,668,944
95$88,883,867$0$0$46,921,420
96$97,742,884$0$0$51,604,506
97$107,498,996$0$0$56,762,026
98$118,243,501$0$0$62,442,269
99$130,077,003$0$0$68,698,448
100$143,110,362$0$0$75,589,200