Can I retire at age 40 with 906,000?

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 $906,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.3%
1 years$74,817$74,150$73,500$72,865$72,246$71,254
2 years$37,038$36,348$35,680$35,031$34,403$33,406
3 years$24,447$23,754$23,087$22,445$21,826$20,855
4 years$18,152$17,462$16,801$16,170$15,567$14,628
5 years$14,377$13,690$13,039$12,420$11,834$10,930
6 years$11,860$11,179$10,537$9,933$9,364$8,497
7 years$10,064$9,388$8,756$8,166$7,615$6,785
8 years$8,717$8,047$7,426$6,850$6,317$5,524
9 years$7,670$7,007$6,396$5,835$5,320$4,564
10 years$6,833$6,176$5,576$5,030$4,533$3,812
11 years$6,148$5,498$4,909$4,377$3,899$3,213
12 years$5,578$4,935$4,357$3,840$3,378$2,727
13 years$5,096$4,460$3,893$3,390$2,946$2,329
14 years$4,684$4,054$3,497$3,009$2,583$1,998
15 years$4,326$3,703$3,158$2,684$2,274$1,721
16 years$4,014$3,398$2,863$2,403$2,010$1,487
17 years$3,739$3,129$2,605$2,159$1,782$1,289
18 years$3,494$2,891$2,378$1,946$1,584$1,119
19 years$3,276$2,680$2,177$1,758$1,412$975
20 years$3,079$2,490$1,998$1,592$1,261$850
21 years$2,902$2,319$1,838$1,445$1,129$742
22 years$2,741$2,165$1,694$1,314$1,012$649
23 years$2,594$2,025$1,564$1,197$908$568
24 years$2,459$1,897$1,446$1,091$816$498
25 years$2,336$1,780$1,340$997$735$437
26 years$2,222$1,673$1,242$911$662$384
27 years$2,117$1,575$1,154$834$597$337
28 years$2,019$1,484$1,073$764$538$296
29 years$1,929$1,400$998$701$486$260
30 years$1,844$1,322$930$643$439$229
31 years$1,765$1,250$867$591$397$202
32 years$1,692$1,183$809$543$359$178
33 years$1,623$1,120$755$499$325$156
34 years$1,558$1,061$705$459$294$138
35 years$1,496$1,007$660$423$267$121
36 years$1,439$956$617$389$242$107
37 years$1,385$908$578$359$219$94
38 years$1,333$863$541$331$198$83
39 years$1,285$820$507$305$180$73
40 years$1,239$780$475$281$163$65
41 years$1,195$743$445$260$148$57
42 years$1,153$707$418$239$134$50
43 years$1,114$674$392$221$122$44
44 years$1,076$642$368$204$111$39
45 years$1,041$613$345$189$100$35
46 years$1,007$584$324$174$91$30
47 years$974$558$305$161$83$27
48 years$943$532$286$149$75$24
49 years$913$508$269$137$68$21
50 years$885$486$253$127$62$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $906,000, adding $3,380 every year, while hoping to spend $24,307 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: 85/10/5 Blend
39$906,000$906,000$906,000$906,000
40$1,001,898$953,880$939,837$1,086,781
41$1,078,230$974,758$945,460$1,163,499
42$1,161,532$995,844$950,455$1,244,074
43$1,252,491$1,017,123$954,778$1,331,809
44$1,351,861$1,038,578$958,379$1,427,406
45$1,460,472$1,060,190$961,206$1,531,639
46$1,579,239$1,081,938$963,206$1,645,360
47$1,709,170$1,103,802$964,322$1,769,505
48$1,851,372$1,125,755$964,493$1,905,109
49$2,007,067$1,147,771$963,658$2,053,309
50$2,177,598$1,169,822$961,751$2,215,358
51$2,364,446$1,191,877$958,703$2,392,635
52$2,569,243$1,213,902$954,443$2,586,662
53$2,793,782$1,235,860$948,893$2,799,111
54$3,040,042$1,257,712$941,976$3,031,829
55$3,310,202$1,279,415$933,607$3,286,845
56$3,606,661$1,300,924$923,701$3,566,400
57$3,932,061$1,322,190$912,166$3,872,958
58$4,289,314$1,343,160$898,906$4,209,236
59$4,681,626$1,363,777$883,822$4,578,227
60$5,112,531$1,383,981$866,808$4,983,228
61$5,585,919$1,403,706$847,757$5,427,872
62$6,106,078$1,422,883$826,552$5,916,162
63$6,677,730$1,441,437$803,074$6,452,508
64$7,306,080$1,459,288$777,198$7,041,769
65$7,996,858$1,476,352$748,792$7,689,298
66$8,756,381$1,492,536$717,720$8,400,995
67$9,591,606$1,507,745$683,838$9,183,361
68$10,510,200$1,521,874$646,996$10,043,556
69$11,520,608$1,534,814$607,039$10,989,473
70$12,632,137$1,546,446$563,801$12,029,809
71$13,855,038$1,556,646$517,112$13,174,145
72$15,200,610$1,565,279$466,793$14,433,040
73$16,681,300$1,572,205$412,658$15,818,130
74$18,310,822$1,577,273$354,511$17,342,235
75$20,104,288$1,580,322$292,150$19,019,484
76$22,078,349$1,581,181$225,361$20,865,444
77$24,251,353$1,579,671$153,922$22,897,271
78$26,643,515$1,575,599$77,602$25,133,870
79$29,277,110$1,568,760$0$27,596,073
80$32,176,685$1,558,939$0$30,307,040
81$35,369,286$1,545,906$0$33,296,296
82$38,884,716$1,529,418$0$36,587,586
83$42,755,814$1,509,216$0$40,211,645
84$47,018,767$1,485,028$0$44,202,341
85$51,713,449$1,456,563$0$48,596,992
86$56,883,801$1,423,514$0$53,436,727
87$62,578,239$1,385,556$0$58,766,862
88$68,850,117$1,342,346$0$64,637,338
89$75,758,226$1,293,519$0$71,103,188
90$83,367,353$1,238,689$0$78,225,056
91$91,748,887$1,177,449$0$86,069,770
92$100,981,497$1,109,367$0$94,710,973
93$111,151,871$1,033,987$0$104,229,820
94$122,355,536$950,827$0$114,715,739
95$134,697,760$859,377$0$126,267,283
96$148,294,542$759,097$0$138,993,050
97$163,273,710$649,418$0$153,012,718
98$179,776,128$529,738$0$168,458,171
99$197,957,019$399,422$0$185,474,740
100$217,987,439$257,797$0$204,222,583