Can I retire at age 40 with 986,000?

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 $986,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$81,423$80,698$79,990$79,299$78,625$77,643
2 years$40,308$39,558$38,830$38,125$37,440$36,452
3 years$26,605$25,851$25,126$24,427$23,754$22,790
4 years$19,755$19,004$18,285$17,598$16,941$16,009
5 years$15,646$14,899$14,190$13,517$12,879$11,981
6 years$12,908$12,166$11,468$10,810$10,190$9,329
7 years$10,952$10,217$9,530$8,887$8,288$7,462
8 years$9,487$8,758$8,082$7,455$6,875$6,086
9 years$8,347$7,625$6,961$6,350$5,790$5,037
10 years$7,436$6,721$6,069$5,474$4,933$4,215
11 years$6,691$5,984$5,343$4,764$4,243$3,559
12 years$6,071$5,371$4,742$4,179$3,677$3,027
13 years$5,546$4,853$4,236$3,689$3,206$2,589
14 years$5,097$4,412$3,806$3,275$2,811$2,226
15 years$4,708$4,030$3,437$2,921$2,475$1,921
16 years$4,368$3,698$3,116$2,615$2,187$1,664
17 years$4,069$3,405$2,835$2,350$1,939$1,445
18 years$3,803$3,147$2,588$2,117$1,724$1,258
19 years$3,565$2,916$2,369$1,913$1,537$1,097
20 years$3,351$2,710$2,174$1,733$1,373$959
21 years$3,158$2,524$2,000$1,573$1,228$840
22 years$2,983$2,356$1,843$1,430$1,101$736
23 years$2,823$2,204$1,702$1,302$988$646
24 years$2,676$2,065$1,574$1,188$888$567
25 years$2,542$1,938$1,458$1,085$799$499
26 years$2,418$1,821$1,352$992$720$439
27 years$2,304$1,714$1,256$908$649$387
28 years$2,198$1,615$1,167$832$586$341
29 years$2,099$1,524$1,086$763$529$300
30 years$2,007$1,439$1,012$700$478$265
31 years$1,921$1,360$943$643$432$234
32 years$1,841$1,287$880$591$391$206
33 years$1,766$1,219$822$543$354$182
34 years$1,695$1,155$768$500$320$161
35 years$1,629$1,096$718$460$290$142
36 years$1,566$1,040$672$424$263$125
37 years$1,507$988$629$391$238$111
38 years$1,451$939$589$360$216$98
39 years$1,398$893$551$332$196$87
40 years$1,348$849$517$306$178$77
41 years$1,300$808$485$282$161$68
42 years$1,255$770$455$261$146$60
43 years$1,212$734$427$241$133$53
44 years$1,172$699$400$222$120$47
45 years$1,133$667$376$205$109$41
46 years$1,095$636$353$190$99$37
47 years$1,060$607$332$175$90$32
48 years$1,026$579$312$162$82$29
49 years$994$553$293$150$74$25
50 years$963$529$276$138$68$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $986,000, adding $2,743 every year, while hoping to spend $41,816 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: 63/22/15 Blend
39$986,000$986,000$986,000$986,000
40$1,089,401$1,037,143$1,021,860$1,153,867
41$1,156,028$1,043,472$1,011,601$1,203,782
42$1,228,050$1,048,708$999,596$1,253,244
43$1,305,972$1,052,756$985,743$1,306,244
44$1,390,351$1,055,511$969,936$1,363,130
45$1,481,798$1,056,862$952,060$1,424,282
46$1,580,987$1,056,694$931,999$1,490,123
47$1,688,656$1,054,880$909,630$1,561,118
48$1,805,619$1,051,290$884,823$1,637,781
49$1,932,771$1,045,782$857,443$1,720,682
50$2,071,097$1,038,208$827,350$1,810,446
51$2,221,679$1,028,410$794,397$1,907,768
52$2,385,709$1,016,221$758,428$2,013,412
53$2,564,499$1,001,464$719,283$2,128,222
54$2,759,492$983,950$676,793$2,253,132
55$2,972,277$963,480$630,783$2,389,171
56$3,204,603$939,844$581,067$2,537,477
57$3,458,394$912,818$527,455$2,699,305
58$3,735,770$882,166$469,744$2,876,039
59$4,039,064$847,637$407,726$3,069,211
60$4,370,844$808,967$341,180$3,280,509
61$4,733,940$765,876$269,879$3,511,796
62$5,131,465$718,068$193,584$3,765,129
63$5,566,850$665,228$112,044$4,042,780
64$6,043,871$607,027$25,000$4,347,253
65$6,566,689$543,114$0$4,681,314
66$7,139,883$473,119$0$5,058,880
67$7,768,501$396,651$0$5,477,428
68$8,458,098$313,297$0$5,936,716
69$9,214,796$222,621$0$6,440,893
70$10,045,338$124,162$0$6,994,532
71$10,957,149$17,433$0$7,602,677
72$11,958,412$0$0$8,270,890
73$13,058,138$0$0$9,029,045
74$14,266,256$0$0$9,866,636
75$15,593,701$0$0$10,787,036
76$17,052,523$0$0$11,798,607
77$18,655,994$0$0$12,910,565
78$20,418,740$0$0$14,133,060
79$22,356,870$0$0$15,477,276
80$24,488,135$0$0$16,955,536
81$26,832,092$0$0$18,581,415
82$29,410,286$0$0$20,369,871
83$32,246,458$0$0$22,337,383
84$35,366,763$0$0$24,502,110
85$38,800,022$0$0$26,884,058
86$42,577,987$0$0$29,505,271
87$46,735,646$0$0$32,390,037
88$51,311,549$0$0$35,565,119
89$56,348,173$0$0$39,060,005
90$61,892,323$0$0$42,907,188
91$67,995,571$0$0$47,142,470
92$74,714,742$0$0$51,805,301
93$82,112,452$0$0$56,939,152
94$90,257,698$0$0$62,591,921
95$99,226,508$0$0$68,816,389
96$109,102,655$0$0$75,670,716
97$119,978,454$0$0$83,218,989
98$131,955,624$0$0$91,531,826
99$145,146,256$0$0$100,687,044
100$159,673,864$0$0$110,770,392