Can I retire at age 40 with 884,000?

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 $884,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$73,000$72,350$71,715$71,096$70,491$69,210
2 years$36,139$35,466$34,813$34,181$33,567$32,281
3 years$23,853$23,177$22,526$21,900$21,296$20,045
4 years$17,712$17,038$16,393$15,778$15,189$13,982
5 years$14,028$13,358$12,722$12,119$11,546$10,388
6 years$11,572$10,908$10,281$9,691$9,136$8,027
7 years$9,819$9,160$8,544$7,968$7,430$6,371
8 years$8,505$7,852$7,246$6,684$6,164$5,154
9 years$7,484$6,837$6,241$5,693$5,191$4,230
10 years$6,667$6,026$5,441$4,908$4,423$3,510
11 years$5,999$5,365$4,790$4,271$3,804$2,938
12 years$5,443$4,815$4,251$3,746$3,296$2,476
13 years$4,973$4,351$3,798$3,308$2,875$2,099
14 years$4,570$3,955$3,413$2,936$2,520$1,787
15 years$4,221$3,613$3,081$2,618$2,219$1,528
16 years$3,916$3,315$2,793$2,345$1,961$1,310
17 years$3,648$3,053$2,542$2,107$1,739$1,127
18 years$3,409$2,821$2,320$1,898$1,546$971
19 years$3,196$2,615$2,124$1,715$1,378$839
20 years$3,004$2,430$1,950$1,554$1,231$725
21 years$2,831$2,263$1,793$1,410$1,101$628
22 years$2,674$2,113$1,653$1,282$987$545
23 years$2,531$1,976$1,526$1,168$886$473
24 years$2,400$1,851$1,411$1,065$797$411
25 years$2,279$1,737$1,307$973$717$357
26 years$2,168$1,633$1,212$889$646$311
27 years$2,065$1,537$1,126$814$582$271
28 years$1,970$1,448$1,047$746$525$236
29 years$1,882$1,366$974$684$474$206
30 years$1,799$1,290$907$628$429$179
31 years$1,723$1,219$846$576$387$156
32 years$1,651$1,154$789$530$350$136
33 years$1,583$1,093$737$487$317$119
34 years$1,520$1,036$688$448$287$104
35 years$1,460$982$644$413$260$91
36 years$1,404$932$602$380$236$79
37 years$1,351$886$563$350$214$69
38 years$1,301$842$528$323$194$60
39 years$1,253$800$494$298$176$53
40 years$1,209$761$463$274$159$46
41 years$1,166$725$435$253$144$40
42 years$1,125$690$408$234$131$35
43 years$1,087$658$382$216$119$31
44 years$1,050$627$359$199$108$27
45 years$1,015$598$337$184$98$23
46 years$982$570$317$170$89$21
47 years$950$544$297$157$81$18
48 years$920$520$280$145$73$16
49 years$891$496$263$134$67$14
50 years$863$474$247$124$61$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $884,000, adding $5,119 every year, while hoping to spend $51,438 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: 43/40/17 Blend
39$884,000$884,000$884,000$884,000
40$979,448$932,596$918,894$1,016,519
41$1,024,622$923,564$894,948$1,034,078
42$1,072,680$912,365$868,475$1,047,619
43$1,123,862$898,839$839,337$1,061,200
44$1,178,429$882,816$807,388$1,074,848
45$1,236,671$864,115$772,477$1,088,597
46$1,298,901$842,547$734,445$1,102,488
47$1,365,466$817,909$693,126$1,116,572
48$1,436,744$789,987$648,346$1,130,908
49$1,513,150$758,554$599,924$1,145,565
50$1,595,140$723,372$547,670$1,160,626
51$1,683,214$684,187$491,387$1,176,188
52$1,777,921$640,731$430,868$1,192,361
53$1,879,863$592,721$365,896$1,209,275
54$1,989,702$539,857$296,246$1,227,077
55$2,108,164$481,823$221,683$1,245,939
56$2,236,048$418,283$141,960$1,266,054
57$2,374,231$348,885$56,822$1,287,645
58$2,523,677$273,255$0$1,310,966
59$2,685,445$190,998$0$1,342,478
60$2,860,702$101,698$0$1,387,733
61$3,050,726$4,914$0$1,436,837
62$3,256,927$0$0$1,490,260
63$3,480,855$0$0$1,592,468
64$3,724,212$0$0$1,705,990
65$3,988,873$0$0$1,829,552
66$4,276,900$0$0$1,964,127
67$4,590,563$0$0$2,110,790
68$4,932,359$0$0$2,270,721
69$5,305,034$0$0$2,445,222
70$5,711,614$0$0$2,635,722
71$6,155,428$0$0$2,843,798
72$6,640,139$0$0$3,071,183
73$7,169,782$0$0$3,319,787
74$7,748,797$0$0$3,591,712
75$8,382,074$0$0$3,889,273
76$9,074,997$0$0$4,215,018
77$9,833,493$0$0$4,571,753
78$10,664,091$0$0$4,962,570
79$11,573,978$0$0$5,390,871
80$12,571,072$0$0$5,860,407
81$13,664,090$0$0$6,375,304
82$14,862,636$0$0$6,940,111
83$16,177,285$0$0$7,559,835
84$17,619,686$0$0$8,239,994
85$19,202,669$0$0$8,986,665
86$20,940,369$0$0$9,806,541
87$22,848,354$0$0$10,706,996
88$24,943,773$0$0$11,696,154
89$27,245,519$0$0$12,782,963
90$29,774,403$0$0$13,977,280
91$32,553,354$0$0$15,289,968
92$35,607,630$0$0$16,732,991
93$38,965,057$0$0$18,319,530
94$42,656,294$0$0$20,064,109
95$46,715,116$0$0$21,982,729
96$51,178,736$0$0$24,093,019
97$56,088,154$0$0$26,414,401
98$61,488,542$0$0$28,968,278
99$67,429,670$0$0$31,778,228
100$73,966,377$0$0$34,870,230