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%14.9%
1 years$76,386$75,705$75,041$74,393$73,761$72,272
2 years$37,815$37,110$36,428$35,766$35,124$33,630
3 years$24,959$24,252$23,571$22,916$22,284$20,832
4 years$18,533$17,828$17,154$16,509$15,893$14,495
5 years$14,678$13,977$13,312$12,681$12,082$10,740
6 years$12,109$11,413$10,758$10,141$9,560$8,277
7 years$10,275$9,585$8,940$8,337$7,775$6,551
8 years$8,900$8,216$7,582$6,994$6,450$5,284
9 years$7,831$7,154$6,530$5,957$5,432$4,324
10 years$6,976$6,306$5,693$5,135$4,628$3,577
11 years$6,277$5,613$5,012$4,469$3,980$2,985
12 years$5,695$5,038$4,448$3,920$3,449$2,507
13 years$5,203$4,553$3,974$3,461$3,008$2,118
14 years$4,782$4,139$3,571$3,072$2,637$1,798
15 years$4,417$3,781$3,224$2,740$2,322$1,531
16 years$4,098$3,469$2,923$2,453$2,052$1,309
17 years$3,817$3,195$2,660$2,204$1,819$1,121
18 years$3,567$2,952$2,428$1,986$1,618$963
19 years$3,344$2,736$2,223$1,795$1,442$828
20 years$3,144$2,542$2,040$1,626$1,288$714
21 years$2,963$2,368$1,876$1,475$1,152$616
22 years$2,798$2,211$1,729$1,341$1,033$532
23 years$2,648$2,067$1,597$1,222$927$460
24 years$2,511$1,937$1,477$1,114$833$398
25 years$2,385$1,818$1,368$1,018$750$345
26 years$2,269$1,708$1,269$930$676$299
27 years$2,161$1,608$1,178$852$609$259
28 years$2,062$1,515$1,095$780$550$225
29 years$1,969$1,429$1,019$716$496$195
30 years$1,883$1,350$949$657$448$170
31 years$1,802$1,276$885$603$405$147
32 years$1,727$1,207$826$554$367$128
33 years$1,657$1,143$771$510$332$111
34 years$1,590$1,084$720$469$300$97
35 years$1,528$1,028$673$432$272$84
36 years$1,469$976$630$398$247$73
37 years$1,414$927$590$366$223$64
38 years$1,361$881$552$338$203$55
39 years$1,312$837$517$311$184$48
40 years$1,265$797$485$287$167$42
41 years$1,220$758$455$265$151$36
42 years$1,178$722$426$245$137$32
43 years$1,137$688$400$226$125$28
44 years$1,099$656$376$208$113$24
45 years$1,062$626$353$192$103$21
46 years$1,028$597$331$178$93$18
47 years$994$569$311$164$85$16
48 years$963$544$292$152$77$14
49 years$932$519$275$140$70$12
50 years$903$496$258$130$63$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $925,000, adding $2,780 every year, while hoping to spend $52,218 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: 67/15/18 Blend
39$925,000$925,000$925,000$925,000
40$1,022,218$973,193$958,855$1,086,017
41$1,070,924$965,319$935,417$1,121,155
42$1,122,849$955,310$909,444$1,153,229
43$1,178,264$943,006$880,795$1,187,027
44$1,237,470$928,236$849,325$1,222,715
45$1,300,795$910,822$814,880$1,260,478
46$1,368,596$890,573$777,299$1,300,524
47$1,441,271$867,288$736,416$1,343,080
48$1,519,249$840,754$692,055$1,388,399
49$1,603,007$810,746$644,033$1,436,764
50$1,693,066$777,024$592,160$1,488,485
51$1,789,997$739,337$536,235$1,543,908
52$1,894,428$697,416$476,051$1,603,416
53$2,007,049$650,979$411,388$1,667,434
54$2,128,619$599,727$342,021$1,736,433
55$2,259,970$543,346$267,710$1,810,932
56$2,402,016$481,499$188,208$1,891,511
57$2,555,765$413,836$103,256$1,978,807
58$2,722,321$339,982$12,583$2,073,528
59$2,902,901$259,544$0$2,176,459
60$3,098,842$172,107$0$2,304,633
61$3,311,613$77,230$0$2,446,472
62$3,542,834$0$0$2,600,680
63$3,794,281$0$0$2,772,708
64$4,067,914$0$0$2,973,836
65$4,365,886$0$0$3,192,906
66$4,690,567$0$0$3,431,667
67$5,044,565$0$0$3,692,043
68$5,430,751$0$0$3,976,154
69$5,852,285$0$0$4,286,332
70$6,312,645$0$0$4,625,142
71$6,815,659$0$0$4,995,412
72$7,365,543$0$0$5,400,252
73$7,966,938$0$0$5,843,088
74$8,624,953$0$0$6,327,692
75$9,345,216$0$0$6,858,217
76$10,133,922$0$0$7,439,235
77$10,997,894$0$0$8,075,785
78$11,944,646$0$0$8,773,411
79$12,982,454$0$0$9,538,223
80$14,120,430$0$0$10,376,948
81$15,368,614$0$0$11,296,997
82$16,738,061$0$0$12,306,531
83$18,240,950$0$0$13,414,541
84$19,890,695$0$0$14,630,930
85$21,702,073$0$0$15,966,605
86$23,691,361$0$0$17,433,583
87$25,876,491$0$0$19,045,103
88$28,277,215$0$0$20,815,746
89$30,915,294$0$0$22,761,579
90$33,814,703$0$0$24,900,299
91$37,001,851$0$0$27,251,405
92$40,505,837$0$0$29,836,379
93$44,358,719$0$0$32,678,888
94$48,595,815$0$0$35,805,008
95$53,256,038$0$0$39,243,468
96$58,382,263$0$0$43,025,921
97$64,021,728$0$0$47,187,242
98$70,226,478$0$0$51,765,857
99$77,053,862$0$0$56,804,104
100$84,567,063$0$0$62,348,634