Can I retire at age 40 with 870,000?

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 $870,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.9%
1 years$71,844$71,204$70,579$69,970$69,375$67,974
2 years$35,566$34,904$34,262$33,639$33,036$31,631
3 years$23,475$22,810$22,170$21,553$20,959$19,594
4 years$17,431$16,768$16,134$15,528$14,948$13,633
5 years$13,805$13,146$12,521$11,927$11,363$10,102
6 years$11,389$10,735$10,118$9,538$8,992$7,785
7 years$9,664$9,015$8,408$7,842$7,313$6,161
8 years$8,371$7,728$7,131$6,578$6,066$4,970
9 years$7,365$6,728$6,142$5,603$5,109$4,067
10 years$6,561$5,931$5,355$4,830$4,353$3,364
11 years$5,904$5,280$4,714$4,204$3,744$2,807
12 years$5,357$4,739$4,184$3,687$3,244$2,358
13 years$4,894$4,282$3,738$3,255$2,829$1,992
14 years$4,498$3,893$3,359$2,890$2,480$1,691
15 years$4,154$3,556$3,032$2,577$2,183$1,440
16 years$3,854$3,263$2,749$2,307$1,930$1,231
17 years$3,590$3,005$2,502$2,073$1,711$1,055
18 years$3,355$2,776$2,284$1,868$1,521$906
19 years$3,145$2,573$2,091$1,688$1,356$779
20 years$2,957$2,391$1,919$1,529$1,211$671
21 years$2,786$2,227$1,765$1,388$1,084$579
22 years$2,632$2,079$1,627$1,262$972$501
23 years$2,491$1,945$1,502$1,149$872$433
24 years$2,362$1,822$1,389$1,048$784$375
25 years$2,243$1,710$1,286$957$705$325
26 years$2,134$1,607$1,193$875$635$281
27 years$2,033$1,512$1,108$801$573$244
28 years$1,939$1,425$1,030$734$517$212
29 years$1,852$1,344$958$673$467$184
30 years$1,771$1,270$893$618$422$159
31 years$1,695$1,200$832$567$381$139
32 years$1,624$1,136$777$521$345$120
33 years$1,558$1,075$725$479$312$105
34 years$1,496$1,019$677$441$283$91
35 years$1,437$967$633$406$256$79
36 years$1,382$918$593$374$232$69
37 years$1,330$872$555$345$210$60
38 years$1,280$828$519$318$191$52
39 years$1,234$788$487$293$173$45
40 years$1,189$749$456$270$157$39
41 years$1,147$713$428$249$142$34
42 years$1,108$679$401$230$129$30
43 years$1,070$647$376$212$117$26
44 years$1,034$617$353$196$106$23
45 years$999$588$332$181$97$20
46 years$967$561$312$167$88$17
47 years$935$536$293$154$80$15
48 years$905$511$275$143$72$13
49 years$877$488$259$132$66$11
50 years$849$466$243$122$60$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $870,000, adding $5,152 every year, while hoping to spend $32,182 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: 43/32/25 Blend
39$870,000$870,000$870,000$870,000
40$964,054$917,944$904,459$998,291
41$1,028,146$928,682$900,517$1,033,934
42$1,097,697$938,868$895,365$1,069,053
43$1,173,230$948,440$888,927$1,106,470
44$1,255,319$957,333$881,126$1,146,416
45$1,344,598$965,478$871,879$1,189,147
46$1,441,762$972,802$861,102$1,234,946
47$1,547,577$979,224$848,705$1,284,126
48$1,662,886$984,662$834,592$1,337,034
49$1,788,616$989,027$818,667$1,394,054
50$1,925,789$992,223$800,826$1,455,611
51$2,075,527$994,150$780,962$1,522,178
52$2,239,068$994,700$758,961$1,594,273
53$2,417,773$993,760$734,706$1,672,475
54$2,613,141$991,210$708,074$1,757,421
55$2,826,822$986,920$678,935$1,849,817
56$3,060,633$980,755$647,155$1,950,443
57$3,316,576$972,570$612,593$2,060,163
58$3,596,853$962,212$575,102$2,179,932
59$3,903,892$949,520$534,527$2,310,805
60$4,240,363$934,320$490,708$2,453,950
61$4,609,210$916,432$443,476$2,610,655
62$5,013,673$895,661$392,657$2,782,348
63$5,457,323$871,804$338,066$2,970,603
64$5,944,092$844,644$279,513$3,177,162
65$6,478,309$813,952$216,797$3,403,949
66$7,064,747$779,485$149,709$3,653,089
67$7,708,658$740,988$78,032$3,926,930
68$8,415,834$698,188$1,538$4,228,065
69$9,192,649$650,799$0$4,559,358
70$10,046,128$598,518$0$4,945,338
71$10,984,012$541,024$0$5,369,959
72$12,014,824$477,977$0$5,836,735
73$13,147,959$409,021$0$6,349,998
74$14,393,763$333,775$0$6,914,522
75$15,763,638$251,841$0$7,535,575
76$17,270,144$162,796$0$8,218,968
77$18,927,119$66,194$0$8,971,107
78$20,749,812$0$0$9,799,059
79$22,755,022$0$0$10,724,151
80$24,961,258$0$0$11,767,754
81$27,388,915$0$0$12,916,221
82$30,060,464$0$0$14,180,199
83$33,000,663$0$0$15,571,418
84$36,236,795$0$0$17,102,803
85$39,798,920$0$0$18,788,598
86$43,720,159$0$0$20,644,495
87$48,037,010$0$0$22,687,787
88$52,789,687$0$0$24,937,527
89$58,022,504$0$0$27,414,712
90$63,784,289$0$0$30,142,477
91$70,128,845$0$0$33,146,314
92$77,115,462$0$0$36,454,317
93$84,809,467$0$0$40,097,438
94$93,282,850$0$0$44,109,789
95$102,614,937$0$0$48,528,955
96$112,893,140$0$0$53,396,355
97$124,213,781$0$0$58,757,629
98$136,683,002$0$0$64,663,072
99$150,417,765$0$0$71,168,102
100$165,546,956$0$0$78,333,792