Can I retire at age 40 with 905,000?

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 $905,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$74,734$74,068$73,419$72,785$72,166$70,796
2 years$36,997$36,308$35,640$34,993$34,365$32,990
3 years$24,420$23,728$23,062$22,420$21,802$20,465
4 years$18,132$17,442$16,783$16,152$15,550$14,261
5 years$14,361$13,675$13,024$12,407$11,821$10,584
6 years$11,847$11,167$10,526$9,922$9,353$8,170
7 years$10,053$9,378$8,747$8,157$7,607$6,477
8 years$8,707$8,038$7,418$6,843$6,310$5,234
9 years$7,661$6,999$6,389$5,829$5,314$4,290
10 years$6,825$6,169$5,570$5,024$4,528$3,556
11 years$6,141$5,492$4,904$4,373$3,894$2,972
12 years$5,572$4,929$4,352$3,835$3,375$2,502
13 years$5,091$4,455$3,888$3,386$2,943$2,118
14 years$4,678$4,049$3,494$3,006$2,580$1,801
15 years$4,322$3,699$3,154$2,681$2,271$1,538
16 years$4,009$3,394$2,860$2,400$2,007$1,317
17 years$3,734$3,126$2,602$2,157$1,780$1,131
18 years$3,490$2,888$2,376$1,944$1,583$973
19 years$3,272$2,677$2,175$1,756$1,411$839
20 years$3,076$2,487$1,996$1,591$1,260$725
21 years$2,899$2,317$1,836$1,443$1,128$627
22 years$2,738$2,163$1,692$1,312$1,011$543
23 years$2,591$2,023$1,562$1,195$907$470
24 years$2,457$1,895$1,445$1,090$815$408
25 years$2,333$1,779$1,338$996$734$354
26 years$2,220$1,672$1,241$910$661$308
27 years$2,114$1,573$1,152$833$596$268
28 years$2,017$1,482$1,071$763$538$233
29 years$1,927$1,398$997$700$486$203
30 years$1,842$1,321$929$643$439$176
31 years$1,763$1,248$866$590$397$153
32 years$1,690$1,181$808$542$359$134
33 years$1,621$1,119$754$499$325$116
34 years$1,556$1,060$705$459$294$101
35 years$1,495$1,006$659$422$266$88
36 years$1,437$955$616$389$241$77
37 years$1,383$907$577$358$219$67
38 years$1,332$862$540$330$198$59
39 years$1,283$819$506$305$180$51
40 years$1,237$779$474$281$163$45
41 years$1,194$742$445$259$148$39
42 years$1,152$707$417$239$134$34
43 years$1,113$673$392$221$122$30
44 years$1,075$642$368$204$111$26
45 years$1,040$612$345$188$100$22
46 years$1,005$584$324$174$91$20
47 years$973$557$305$161$83$17
48 years$942$532$286$149$75$15
49 years$912$508$269$137$68$13
50 years$884$485$253$127$62$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $905,000, adding $2,699 every year, while hoping to spend $45,232 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: 41/36/23 Blend
39$905,000$905,000$905,000$905,000
40$1,000,094$952,129$938,102$1,034,229
41$1,053,977$950,657$921,401$1,057,468
42$1,111,840$947,597$902,626$1,078,095
43$1,174,042$942,823$881,658$1,099,517
44$1,240,975$936,202$858,374$1,121,832
45$1,313,071$927,593$832,646$1,145,151
46$1,390,805$916,845$804,341$1,169,602
47$1,474,698$903,801$773,317$1,195,324
48$1,565,322$888,292$739,427$1,222,480
49$1,663,305$870,139$702,519$1,251,249
50$1,769,340$849,154$662,431$1,281,834
51$1,884,187$825,136$618,997$1,314,464
52$2,008,681$797,875$572,040$1,349,395
53$2,143,740$767,145$521,378$1,386,913
54$2,290,377$732,710$466,819$1,427,341
55$2,449,701$694,319$408,163$1,471,039
56$2,622,937$651,706$345,202$1,518,409
57$2,811,428$604,591$277,718$1,569,902
58$3,016,655$552,678$205,484$1,626,020
59$3,240,248$495,653$128,261$1,687,324
60$3,483,997$433,184$45,801$1,754,441
61$3,749,876$364,921$0$1,828,068
62$4,040,055$290,494$0$1,919,338
63$4,356,925$209,513$0$2,031,429
64$4,703,117$121,565$0$2,154,120
65$5,081,527$26,213$0$2,288,557
66$5,495,343$0$0$2,436,005
67$5,948,076$0$0$2,628,371
68$6,443,593$0$0$2,850,394
69$6,986,150$0$0$3,093,612
70$7,580,435$0$0$3,360,142
71$8,231,611$0$0$3,652,313
72$8,945,363$0$0$3,972,693
73$9,727,953$0$0$4,324,110
74$10,586,277$0$0$4,709,675
75$11,527,931$0$0$5,132,821
76$12,561,283$0$0$5,597,324
77$13,695,547$0$0$6,107,347
78$14,940,877$0$0$6,667,474
79$16,308,454$0$0$7,282,755
80$17,810,598$0$0$7,958,753
81$19,460,879$0$0$8,701,597
82$21,274,247$0$0$9,518,040
83$23,267,172$0$0$10,415,519
84$25,457,798$0$0$11,402,231
85$27,866,115$0$0$12,487,203
86$30,514,147$0$0$13,680,384
87$33,426,157$0$0$14,992,733
88$36,628,878$0$0$16,436,325
89$40,151,765$0$0$18,024,466
90$44,027,268$0$0$19,771,813
91$48,291,144$0$0$21,694,519
92$52,982,787$0$0$23,810,379
93$58,145,605$0$0$26,139,002
94$63,827,425$0$0$28,701,994
95$70,080,947$0$0$31,523,160
96$76,964,237$0$0$34,628,732
97$84,541,275$0$0$38,047,614
98$92,882,562$0$0$41,811,655
99$102,065,780$0$0$45,955,948
100$112,176,526$0$0$50,519,164