Can I retire at age 40 with 869,000?

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 $869,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.2%
1 years$71,761$71,122$70,498$69,890$69,295$66,997
2 years$35,525$34,864$34,223$33,601$32,998$30,704
3 years$23,448$22,784$22,144$21,528$20,935$18,719
4 years$17,411$16,749$16,115$15,510$14,931$12,809
5 years$13,790$13,131$12,506$11,913$11,350$9,328
6 years$11,376$10,722$10,107$9,527$8,981$7,060
7 years$9,653$9,005$8,399$7,833$7,304$5,484
8 years$8,361$7,719$7,123$6,571$6,059$4,339
9 years$7,357$6,721$6,135$5,597$5,103$3,480
10 years$6,554$5,924$5,349$4,824$4,348$2,820
11 years$5,897$5,274$4,709$4,199$3,739$2,304
12 years$5,350$4,733$4,179$3,683$3,240$1,894
13 years$4,888$4,278$3,734$3,251$2,826$1,565
14 years$4,492$3,888$3,355$2,886$2,477$1,298
15 years$4,150$3,552$3,029$2,574$2,181$1,081
16 years$3,850$3,259$2,746$2,305$1,928$902
17 years$3,586$3,001$2,499$2,071$1,709$755
18 years$3,351$2,773$2,281$1,866$1,520$632
19 years$3,142$2,570$2,088$1,686$1,355$531
20 years$2,953$2,388$1,916$1,527$1,210$446
21 years$2,783$2,225$1,763$1,386$1,083$375
22 years$2,629$2,077$1,625$1,260$970$316
23 years$2,488$1,942$1,500$1,148$871$266
24 years$2,359$1,820$1,387$1,047$783$225
25 years$2,240$1,708$1,285$956$705$189
26 years$2,131$1,605$1,192$874$635$160
27 years$2,030$1,511$1,107$800$572$135
28 years$1,937$1,423$1,029$733$516$114
29 years$1,850$1,343$957$672$466$96
30 years$1,769$1,268$892$617$421$81
31 years$1,693$1,199$831$567$381$69
32 years$1,623$1,134$776$521$345$58
33 years$1,556$1,074$724$479$312$49
34 years$1,494$1,018$677$441$282$42
35 years$1,435$966$633$406$256$35
36 years$1,380$917$592$374$232$30
37 years$1,328$871$554$344$210$25
38 years$1,279$827$519$317$190$21
39 years$1,232$787$486$292$173$18
40 years$1,188$748$456$270$157$15
41 years$1,146$712$427$249$142$13
42 years$1,106$679$401$230$129$11
43 years$1,069$646$376$212$117$9
44 years$1,032$616$353$196$106$8
45 years$998$588$331$181$96$7
46 years$965$561$311$167$88$6
47 years$934$535$292$154$79$5
48 years$904$511$275$143$72$4
49 years$876$488$258$132$66$3
50 years$848$466$243$122$60$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $869,000, adding $3,559 every year, while hoping to spend $37,364 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: 74/9/17 Blend
39$869,000$869,000$869,000$869,000
40$961,309$915,252$901,783$1,028,462
41$1,019,608$920,344$892,237$1,078,523
42$1,082,600$924,434$881,120$1,128,433
43$1,150,727$927,432$868,338$1,182,136
44$1,224,469$929,245$853,796$1,240,002
45$1,304,359$929,772$837,393$1,302,436
46$1,390,980$928,908$819,022$1,369,886
47$1,484,975$926,538$798,573$1,442,845
48$1,587,048$922,544$775,931$1,521,858
49$1,697,976$916,799$750,975$1,607,524
50$1,818,615$909,167$723,577$1,700,505
51$1,949,903$899,505$693,607$1,801,532
52$2,092,875$887,663$660,924$1,911,409
53$2,248,668$873,479$625,385$2,031,023
54$2,418,536$856,783$586,839$2,161,353
55$2,603,856$837,394$545,128$2,303,479
56$2,806,145$815,123$500,086$2,458,592
57$3,027,074$789,766$451,541$2,628,002
58$3,268,481$761,110$399,312$2,813,159
59$3,532,390$728,927$343,213$3,015,658
60$3,821,028$692,980$283,045$3,237,259
61$4,136,851$653,013$218,605$3,479,904
62$4,482,558$608,760$149,677$3,745,733
63$4,861,126$559,936$76,038$4,037,106
64$5,275,831$506,243$0$4,356,625
65$5,730,280$447,362$0$4,707,623
66$6,228,446$382,961$0$5,107,550
67$6,774,706$312,685$0$5,546,134
68$7,373,880$236,160$0$6,027,271
69$8,031,276$152,992$0$6,555,252
70$8,752,743$62,765$0$7,134,806
71$9,544,721$0$0$7,771,145
72$10,414,305$0$0$8,473,471
73$11,369,311$0$0$9,251,656
74$12,418,350$0$0$10,106,503
75$13,570,906$0$0$11,045,746
76$14,837,428$0$0$12,077,906
77$16,229,428$0$0$13,212,370
78$17,759,586$0$0$14,459,478
79$19,441,876$0$0$15,830,623
80$21,291,690$0$0$17,338,358
81$23,325,987$0$0$18,996,513
82$25,563,452$0$0$20,820,322
83$28,024,673$0$0$22,826,574
84$30,732,332$0$0$25,033,766
85$33,711,420$0$0$27,462,275
86$36,989,472$0$0$30,134,557
87$40,596,831$0$0$33,075,353
88$44,566,924$0$0$36,311,922
89$48,936,587$0$0$39,874,302
90$53,746,407$0$0$43,795,590
91$59,041,104$0$0$48,112,254
92$64,869,956$0$0$52,864,477
93$71,287,261$0$0$58,096,537
94$78,352,849$0$0$63,857,223
95$86,132,647$0$0$70,200,297
96$94,699,300$0$0$77,184,998
97$104,132,857$0$0$84,876,603
98$114,521,526$0$0$93,347,042
99$125,962,502$0$0$102,675,576
100$138,562,892$0$0$112,949,545