Can I retire at age 40 with 888,000?

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 $888,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$73,330$72,677$72,040$71,418$70,810$69,099
2 years$36,302$35,626$34,971$34,335$33,719$32,005
3 years$23,961$23,282$22,628$21,999$21,393$19,730
4 years$17,792$17,115$16,468$15,849$15,258$13,658
5 years$14,091$13,418$12,780$12,174$11,599$10,067
6 years$11,625$10,957$10,328$9,735$9,178$7,716
7 years$9,864$9,202$8,582$8,004$7,464$6,073
8 years$8,544$7,887$7,279$6,714$6,192$4,870
9 years$7,517$6,867$6,269$5,719$5,215$3,961
10 years$6,697$6,053$5,466$4,930$4,443$3,257
11 years$6,026$5,389$4,812$4,291$3,821$2,700
12 years$5,467$4,837$4,270$3,763$3,311$2,254
13 years$4,995$4,371$3,815$3,322$2,888$1,891
14 years$4,591$3,973$3,428$2,949$2,531$1,594
15 years$4,240$3,630$3,095$2,630$2,229$1,349
16 years$3,934$3,330$2,806$2,355$1,970$1,144
17 years$3,664$3,067$2,553$2,116$1,746$973
18 years$3,425$2,834$2,331$1,907$1,553$830
19 years$3,211$2,626$2,134$1,723$1,384$709
20 years$3,018$2,441$1,958$1,561$1,236$606
21 years$2,844$2,273$1,801$1,416$1,106$519
22 years$2,686$2,122$1,660$1,288$992$445
23 years$2,542$1,985$1,533$1,173$890$382
24 years$2,410$1,860$1,418$1,070$800$328
25 years$2,289$1,745$1,313$977$720$282
26 years$2,178$1,640$1,218$893$649$242
27 years$2,075$1,544$1,131$818$585$208
28 years$1,979$1,454$1,051$749$528$179
29 years$1,890$1,372$978$687$476$154
30 years$1,808$1,296$911$630$430$133
31 years$1,730$1,225$850$579$389$114
32 years$1,658$1,159$793$532$352$99
33 years$1,590$1,098$740$489$319$85
34 years$1,527$1,040$691$450$288$73
35 years$1,467$987$646$414$261$63
36 years$1,410$937$605$382$237$54
37 years$1,357$890$566$352$215$47
38 years$1,307$845$530$324$195$40
39 years$1,259$804$497$299$176$35
40 years$1,214$765$465$276$160$30
41 years$1,171$728$436$254$145$26
42 years$1,131$693$409$235$132$22
43 years$1,092$661$384$217$120$19
44 years$1,055$630$361$200$108$17
45 years$1,020$600$339$185$98$14
46 years$987$573$318$171$89$12
47 years$955$547$299$158$81$11
48 years$924$522$281$146$74$9
49 years$895$498$264$135$67$8
50 years$867$476$248$124$61$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $888,000, adding $6,080 every year, while hoping to spend $38,634 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: 49/34/17 Blend
39$888,000$888,000$888,000$888,000
40$984,848$937,784$924,020$1,028,160
41$1,044,196$942,629$913,868$1,063,578
42$1,108,303$946,416$902,081$1,097,568
43$1,177,613$949,054$888,564$1,133,657
44$1,252,615$950,443$873,217$1,172,055
45$1,333,846$950,479$855,934$1,212,997
46$1,421,897$949,051$836,606$1,256,744
47$1,517,417$946,041$815,119$1,303,584
48$1,621,120$941,324$791,352$1,353,836
49$1,733,792$934,767$765,181$1,407,856
50$1,856,297$926,229$736,473$1,466,038
51$1,989,587$915,561$705,092$1,528,817
52$2,134,706$902,605$670,893$1,596,676
53$2,292,805$887,192$633,728$1,670,152
54$2,465,153$869,146$593,439$1,749,837
55$2,653,142$848,277$549,862$1,836,388
56$2,858,306$824,387$502,827$1,930,533
57$3,082,336$797,265$452,155$2,033,078
58$3,327,090$766,687$397,658$2,144,913
59$3,594,616$732,416$339,141$2,267,026
60$3,887,165$694,204$276,401$2,400,509
61$4,207,221$651,785$209,226$2,546,570
62$4,557,515$604,879$137,392$2,706,545
63$4,941,055$553,192$60,668$2,881,914
64$5,361,155$496,410$0$3,074,312
65$5,821,462$434,204$0$3,289,392
66$6,325,995$366,224$0$3,537,302
67$6,879,178$292,101$0$3,809,283
68$7,485,886$211,446$0$4,107,827
69$8,151,487$123,847$0$4,435,686
70$8,881,894$28,870$0$4,795,898
71$9,683,619$0$0$5,191,815
72$10,563,836$0$0$5,654,803
73$11,530,450$0$0$6,175,197
74$12,592,164$0$0$6,746,895
75$13,758,570$0$0$7,375,073
76$15,040,233$0$0$8,065,435
77$16,448,792$0$0$8,824,265
78$17,997,068$0$0$9,658,484
79$19,699,190$0$0$10,575,720
80$21,570,721$0$0$11,584,373
81$23,628,807$0$0$12,693,702
82$25,892,341$0$0$13,913,905
83$28,382,137$0$0$15,256,221
84$31,121,129$0$0$16,733,031
85$34,134,585$0$0$18,357,976
86$37,450,345$0$0$20,146,089
87$41,099,085$0$0$22,113,930
88$45,114,603$0$0$24,279,749
89$49,534,142$0$0$26,663,653
90$54,398,736$0$0$29,287,797
91$59,753,599$0$0$32,176,593
92$65,648,555$0$0$35,356,943
93$72,138,498$0$0$38,858,486
94$79,283,920$0$0$42,713,882
95$87,151,474$0$0$46,959,122
96$95,814,608$0$0$51,633,862
97$105,354,253$0$0$56,781,800
98$115,859,588$0$0$62,451,088
99$127,428,882$0$0$68,694,786
100$140,170,420$0$0$75,571,363