Can I retire at age 40 with 925,000?

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 $925,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.5%
1 years$76,386$75,705$75,041$74,393$73,761$72,095
2 years$37,815$37,110$36,428$35,766$35,124$33,455
3 years$24,959$24,252$23,571$22,916$22,284$20,663
4 years$18,533$17,828$17,154$16,509$15,893$14,333
5 years$14,678$13,977$13,312$12,681$12,082$10,587
6 years$12,109$11,413$10,758$10,141$9,560$8,133
7 years$10,275$9,585$8,940$8,337$7,775$6,415
8 years$8,900$8,216$7,582$6,994$6,450$5,157
9 years$7,831$7,154$6,530$5,957$5,432$4,204
10 years$6,976$6,306$5,693$5,135$4,628$3,465
11 years$6,277$5,613$5,012$4,469$3,980$2,880
12 years$5,695$5,038$4,448$3,920$3,449$2,410
13 years$5,203$4,553$3,974$3,461$3,008$2,028
14 years$4,782$4,139$3,571$3,072$2,637$1,714
15 years$4,417$3,781$3,224$2,740$2,322$1,454
16 years$4,098$3,469$2,923$2,453$2,052$1,237
17 years$3,817$3,195$2,660$2,204$1,819$1,056
18 years$3,567$2,952$2,428$1,986$1,618$903
19 years$3,344$2,736$2,223$1,795$1,442$773
20 years$3,144$2,542$2,040$1,626$1,288$663
21 years$2,963$2,368$1,876$1,475$1,152$570
22 years$2,798$2,211$1,729$1,341$1,033$490
23 years$2,648$2,067$1,597$1,222$927$422
24 years$2,511$1,937$1,477$1,114$833$363
25 years$2,385$1,818$1,368$1,018$750$313
26 years$2,269$1,708$1,269$930$676$270
27 years$2,161$1,608$1,178$852$609$233
28 years$2,062$1,515$1,095$780$550$201
29 years$1,969$1,429$1,019$716$496$174
30 years$1,883$1,350$949$657$448$150
31 years$1,802$1,276$885$603$405$130
32 years$1,727$1,207$826$554$367$112
33 years$1,657$1,143$771$510$332$97
34 years$1,590$1,084$720$469$300$84
35 years$1,528$1,028$673$432$272$73
36 years$1,469$976$630$398$247$63
37 years$1,414$927$590$366$223$54
38 years$1,361$881$552$338$203$47
39 years$1,312$837$517$311$184$41
40 years$1,265$797$485$287$167$35
41 years$1,220$758$455$265$151$30
42 years$1,178$722$426$245$137$26
43 years$1,137$688$400$226$125$23
44 years$1,099$656$376$208$113$20
45 years$1,062$626$353$192$103$17
46 years$1,028$597$331$178$93$15
47 years$994$569$311$164$85$13
48 years$963$544$292$152$77$11
49 years$932$519$275$140$70$10
50 years$903$496$258$130$63$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $925,000, adding $4,505 every year, while hoping to spend $42,732 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: 75/11/14 Blend
39$925,000$925,000$925,000$925,000
40$1,023,997$974,972$960,634$1,097,427
41$1,082,978$977,279$947,349$1,148,858
42$1,146,543$978,267$932,187$1,199,439
43$1,215,115$977,826$915,039$1,253,709
44$1,289,156$975,840$895,793$1,312,022
45$1,369,179$972,184$874,330$1,374,770
46$1,455,742$966,728$850,527$1,442,381
47$1,549,462$959,332$824,254$1,515,331
48$1,651,016$949,849$795,376$1,594,142
49$1,761,150$938,121$763,751$1,679,392
50$1,880,682$923,984$729,231$1,771,718
51$2,010,512$907,260$691,662$1,871,822
52$2,151,633$887,764$650,880$1,980,476
53$2,305,133$865,298$606,719$2,098,536
54$2,472,212$839,653$558,999$2,226,944
55$2,654,190$810,609$507,538$2,366,737
56$2,852,519$777,930$452,142$2,519,061
57$3,068,797$741,369$392,610$2,685,179
58$3,304,782$700,665$328,731$2,866,486
59$3,562,412$655,539$260,285$3,064,516
60$3,843,817$605,700$187,044$3,280,966
61$4,151,344$550,836$108,767$3,517,704
62$4,487,575$490,621$25,205$3,776,791
63$4,855,355$424,709$0$4,060,500
64$5,257,815$352,734$0$4,380,894
65$5,698,403$274,308$0$4,735,820
66$6,180,916$189,026$0$5,124,602
67$6,709,535$96,454$0$5,550,643
68$7,288,866$0$0$6,017,699
69$7,923,980$0$0$6,530,371
70$8,620,463$0$0$7,105,422
71$9,384,466$0$0$7,736,260
72$10,222,767$0$0$8,428,485
73$11,142,828$0$0$9,188,265
74$12,152,871$0$0$10,022,396
75$13,261,953$0$0$10,938,361
76$14,480,051$0$0$11,944,405
77$15,818,154$0$0$13,049,612
78$17,288,369$0$0$14,263,986
79$18,904,035$0$0$15,598,550
80$20,679,844$0$0$17,065,449
81$22,631,985$0$0$18,678,061
82$24,778,293$0$0$20,451,125
83$27,138,416$0$0$22,400,880
84$29,734,002$0$0$24,545,219
85$32,588,904$0$0$26,903,852
86$35,729,400$0$0$29,498,499
87$39,184,444$0$0$32,353,090
88$42,985,938$0$0$35,493,990
89$47,169,031$0$0$38,950,249
90$51,772,454$0$0$42,753,877
91$56,838,880$0$0$46,940,142
92$62,415,328$0$0$51,547,905
93$68,553,610$0$0$56,619,986
94$75,310,811$0$0$62,203,566
95$82,749,836$0$0$68,350,634
96$90,939,996$0$0$75,118,476
97$99,957,669$0$0$82,570,214
98$109,887,010$0$0$90,775,404
99$120,820,754$0$0$99,810,688
100$132,861,087$0$0$109,760,521