Can I retire at age 40 with 867,000?

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 $867,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.5%
1 years$71,596$70,958$70,336$69,729$69,136$67,301
2 years$35,444$34,783$34,144$33,523$32,922$31,086
3 years$23,394$22,731$22,093$21,479$20,887$19,107
4 years$17,371$16,710$16,078$15,474$14,897$13,187
5 years$13,758$13,101$12,477$11,886$11,324$9,690
6 years$11,350$10,698$10,084$9,505$8,961$7,403
7 years$9,631$8,984$8,379$7,815$7,287$5,806
8 years$8,342$7,701$7,106$6,556$6,046$4,640
9 years$7,340$6,705$6,121$5,584$5,091$3,760
10 years$6,539$5,910$5,336$4,813$4,338$3,080
11 years$5,884$5,261$4,698$4,189$3,731$2,544
12 years$5,338$4,722$4,169$3,674$3,233$2,115
13 years$4,877$4,268$3,725$3,244$2,819$1,768
14 years$4,482$3,879$3,347$2,880$2,471$1,484
15 years$4,140$3,544$3,022$2,568$2,176$1,250
16 years$3,841$3,251$2,740$2,299$1,923$1,056
17 years$3,578$2,994$2,493$2,066$1,705$895
18 years$3,344$2,767$2,276$1,862$1,516$759
19 years$3,135$2,564$2,083$1,682$1,351$645
20 years$2,947$2,383$1,912$1,524$1,207$549
21 years$2,777$2,220$1,759$1,383$1,080$468
22 years$2,623$2,072$1,621$1,257$968$400
23 years$2,482$1,938$1,497$1,145$869$341
24 years$2,353$1,816$1,384$1,044$781$292
25 years$2,235$1,704$1,282$954$703$249
26 years$2,126$1,601$1,189$872$633$213
27 years$2,026$1,507$1,104$798$571$183
28 years$1,932$1,420$1,026$731$515$156
29 years$1,846$1,340$955$671$465$134
30 years$1,765$1,265$890$616$420$115
31 years$1,689$1,196$829$565$380$98
32 years$1,619$1,132$774$520$344$84
33 years$1,553$1,072$723$478$311$72
34 years$1,491$1,016$675$440$282$62
35 years$1,432$963$631$405$255$53
36 years$1,377$914$590$373$231$46
37 years$1,325$868$553$343$209$39
38 years$1,276$825$518$316$190$34
39 years$1,229$785$485$292$172$29
40 years$1,185$747$454$269$156$25
41 years$1,144$711$426$248$142$21
42 years$1,104$677$400$229$129$18
43 years$1,066$645$375$212$117$16
44 years$1,030$615$352$195$106$13
45 years$996$586$331$180$96$12
46 years$963$559$311$167$87$10
47 years$932$534$292$154$79$8
48 years$902$510$274$142$72$7
49 years$874$487$258$131$65$6
50 years$846$465$242$122$59$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $867,000, adding $2,544 every year, while hoping to spend $36,432 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: 90/5/5 Blend
39$867,000$867,000$867,000$867,000
40$958,058$912,107$898,669$1,044,229
41$1,017,017$918,037$890,011$1,106,538
42$1,080,768$923,036$879,842$1,169,620
43$1,149,762$927,021$868,072$1,237,771
44$1,224,495$929,902$854,610$1,311,470
45$1,305,510$931,584$839,356$1,391,250
46$1,393,407$931,966$822,209$1,477,692
47$1,488,843$930,941$803,061$1,571,439
48$1,592,543$928,395$781,802$1,673,198
49$1,705,303$924,207$758,313$1,783,745
50$1,828,000$918,249$732,472$1,903,938
51$1,961,597$910,385$704,152$2,034,719
52$2,107,157$900,471$673,217$2,177,126
53$2,265,846$888,353$639,529$2,332,302
54$2,438,950$873,870$602,941$2,501,506
55$2,627,882$856,849$563,300$2,686,124
56$2,834,202$837,110$520,445$2,887,683
57$3,059,621$814,459$474,211$3,107,863
58$3,306,028$788,693$424,422$3,348,517
59$3,575,499$759,595$370,897$3,611,685
60$3,870,322$726,938$313,445$3,899,614
61$4,193,017$690,480$251,866$4,214,779
62$4,546,355$649,964$185,955$4,559,907
63$4,933,393$605,121$115,493$4,938,002
64$5,357,492$555,665$40,256$5,352,374
65$5,822,357$501,294$0$5,806,668
66$6,332,069$441,689$0$6,307,037
67$6,891,120$376,511$0$6,858,202
68$7,504,459$305,405$0$7,462,903
69$8,177,537$227,994$0$8,126,527
70$8,916,360$143,879$0$8,855,009
71$9,727,541$52,642$0$9,654,885
72$10,618,367$0$0$10,533,361
73$11,596,863$0$0$11,500,911
74$12,671,872$0$0$12,567,078
75$13,853,133$0$0$13,738,625
76$15,151,378$0$0$15,026,196
77$16,578,429$0$0$16,441,515
78$18,147,310$0$0$17,997,501
79$19,872,370$0$0$19,708,384
80$21,769,418$0$0$21,589,844
81$23,855,872$0$0$23,659,155
82$26,150,923$0$0$25,935,352
83$28,675,714$0$0$28,439,404
84$31,453,542$0$0$31,194,416
85$34,510,074$0$0$34,225,847
86$37,873,593$0$0$37,561,747
87$41,575,262$0$0$41,233,021
88$45,649,415$0$0$45,273,724
89$50,133,887$0$0$49,721,380
90$55,070,363$0$0$54,617,333
91$60,504,780$0$0$60,007,142
92$66,487,749$0$0$65,941,004
93$73,075,044$0$0$72,474,234
94$80,328,117$0$0$79,667,781
95$88,314,685$0$0$87,588,808
96$97,109,365$0$0$96,311,319
97$106,794,381$0$0$105,916,862
98$117,460,334$0$0$116,495,297
99$129,207,061$0$0$128,145,642
100$142,144,576$0$0$140,977,009