Can I retire at age 40 with 985,000?

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 $985,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.7%
1 years$81,340$80,616$79,909$79,219$78,545$77,340
2 years$40,268$39,518$38,791$38,086$37,403$36,191
3 years$26,578$25,825$25,100$24,402$23,730$22,550
4 years$19,735$18,984$18,267$17,580$16,924$15,785
5 years$15,630$14,884$14,176$13,503$12,866$11,770
6 years$12,895$12,154$11,456$10,799$10,180$9,130
7 years$10,941$10,207$9,520$8,878$8,279$7,274
8 years$9,477$8,749$8,074$7,448$6,868$5,909
9 years$8,339$7,618$6,954$6,344$5,784$4,870
10 years$7,429$6,715$6,063$5,468$4,928$4,058
11 years$6,684$5,978$5,337$4,759$4,239$3,412
12 years$6,065$5,365$4,737$4,174$3,673$2,889
13 years$5,541$4,849$4,232$3,685$3,203$2,460
14 years$5,092$4,407$3,802$3,271$2,808$2,105
15 years$4,704$4,026$3,433$2,918$2,472$1,808
16 years$4,364$3,694$3,113$2,612$2,185$1,558
17 years$4,065$3,402$2,832$2,347$1,937$1,346
18 years$3,799$3,143$2,586$2,115$1,723$1,166
19 years$3,561$2,913$2,367$1,911$1,535$1,012
20 years$3,348$2,707$2,172$1,731$1,371$880
21 years$3,155$2,522$1,998$1,571$1,227$766
22 years$2,980$2,354$1,842$1,428$1,100$668
23 years$2,820$2,202$1,700$1,301$987$583
24 years$2,674$2,063$1,573$1,187$888$510
25 years$2,539$1,936$1,456$1,084$799$446
26 years$2,416$1,819$1,351$991$719$390
27 years$2,301$1,712$1,254$907$649$341
28 years$2,195$1,613$1,166$831$585$299
29 years$2,097$1,522$1,085$762$528$262
30 years$2,005$1,437$1,011$699$477$230
31 years$1,919$1,359$942$642$432$202
32 years$1,839$1,286$879$590$391$177
33 years$1,764$1,218$821$543$353$155
34 years$1,693$1,154$767$499$320$136
35 years$1,627$1,095$717$460$290$120
36 years$1,564$1,039$671$423$263$105
37 years$1,505$987$628$390$238$92
38 years$1,450$938$588$360$216$81
39 years$1,397$892$551$332$196$71
40 years$1,347$848$516$306$177$63
41 years$1,299$808$484$282$161$55
42 years$1,254$769$454$260$146$48
43 years$1,211$733$426$240$133$43
44 years$1,170$698$400$222$120$37
45 years$1,131$666$376$205$109$33
46 years$1,094$635$353$189$99$29
47 years$1,059$606$331$175$90$25
48 years$1,025$579$311$162$82$22
49 years$993$553$293$149$74$20
50 years$962$528$275$138$67$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $985,000, adding $2,614 every year, while hoping to spend $42,335 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: 63/20/17 Blend
39$985,000$985,000$985,000$985,000
40$1,088,166$1,035,961$1,020,694$1,151,931
41$1,154,115$1,041,679$1,009,843$1,200,817
42$1,225,372$1,046,259$997,210$1,249,142
43$1,302,433$1,049,599$982,690$1,300,909
44$1,385,845$1,051,593$966,173$1,356,456
45$1,476,208$1,052,127$947,547$1,416,155
46$1,574,181$1,051,082$926,690$1,480,418
47$1,680,491$1,048,328$903,477$1,549,701
48$1,795,935$1,043,730$877,778$1,624,505
49$1,921,392$1,037,144$849,455$1,705,388
50$2,057,827$1,028,417$818,364$1,792,961
51$2,206,302$1,017,387$784,357$1,887,902
52$2,367,987$1,003,881$747,275$1,990,959
53$2,544,169$987,718$706,955$2,102,958
54$2,736,262$968,704$663,226$2,224,813
55$2,945,825$946,635$615,908$2,357,530
56$3,174,573$921,294$564,815$2,502,222
57$3,424,394$892,452$509,751$2,660,118
58$3,697,366$859,866$450,512$2,832,573
59$3,995,778$823,280$386,884$3,021,085
60$4,322,148$782,421$318,645$3,227,307
61$4,679,250$737,002$245,563$3,453,063
62$5,070,137$686,720$167,393$3,700,368
63$5,498,174$631,252$83,884$3,971,445
64$5,967,064$570,259$0$4,268,746
65$6,480,884$503,382$0$4,595,931
66$7,044,128$430,240$0$4,971,337
67$7,661,741$350,435$0$5,383,082
68$8,339,173$263,540$0$5,834,861
69$9,082,425$169,110$0$6,330,745
70$9,898,107$66,671$0$6,875,225
71$10,793,501$0$0$7,473,250
72$11,776,628$0$0$8,140,022
73$12,856,323$0$0$8,888,476
74$14,042,318$0$0$9,710,695
75$15,345,336$0$0$10,614,122
76$16,777,190$0$0$11,606,955
77$18,350,891$0$0$12,698,228
78$20,080,776$0$0$13,897,893
79$21,982,640$0$0$15,216,915
80$24,073,882$0$0$16,667,371
81$26,373,676$0$0$18,262,572
82$28,903,142$0$0$20,017,179
83$31,685,554$0$0$21,947,349
84$34,746,552$0$0$24,070,881
85$38,114,387$0$0$26,407,389
86$41,820,188$0$0$28,978,480
87$45,898,251$0$0$31,807,964
88$50,386,368$0$0$34,922,078
89$55,326,177$0$0$38,349,726
90$60,763,560$0$0$42,122,761
91$66,749,070$0$0$46,276,278
92$73,338,412$0$0$50,848,950
93$80,592,966$0$0$55,883,387
94$88,580,368$0$0$61,426,544
95$97,375,142$0$0$67,530,159
96$107,059,410$0$0$74,251,243
97$117,723,661$0$0$81,652,618
98$129,467,608$0$0$89,803,507
99$142,401,126$0$0$98,780,190
100$156,645,289$0$0$108,666,721