Can I retire at age 40 with 989,000?

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 $989,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.4%
1 years$81,671$80,943$80,233$79,541$78,864$78,400
2 years$40,431$39,678$38,948$38,241$37,554$37,086
3 years$26,686$25,930$25,202$24,501$23,826$23,368
4 years$19,815$19,061$18,341$17,652$16,993$16,549
5 years$15,694$14,944$14,233$13,558$12,918$12,489
6 years$12,947$12,203$11,502$10,843$10,221$9,808
7 years$10,986$10,248$9,559$8,914$8,313$7,916
8 years$9,515$8,785$8,106$7,478$6,896$6,515
9 years$8,373$7,649$6,982$6,370$5,808$5,442
10 years$7,459$6,742$6,087$5,491$4,948$4,599
11 years$6,712$6,002$5,359$4,779$4,256$3,922
12 years$6,089$5,387$4,756$4,191$3,688$3,369
13 years$5,563$4,868$4,249$3,700$3,216$2,912
14 years$5,113$4,425$3,818$3,285$2,819$2,530
15 years$4,723$4,042$3,447$2,929$2,482$2,207
16 years$4,382$3,709$3,125$2,623$2,194$1,932
17 years$4,081$3,416$2,844$2,357$1,945$1,697
18 years$3,814$3,156$2,596$2,124$1,730$1,494
19 years$3,576$2,925$2,377$1,919$1,542$1,319
20 years$3,361$2,718$2,181$1,738$1,377$1,166
21 years$3,168$2,532$2,006$1,577$1,232$1,033
22 years$2,992$2,363$1,849$1,434$1,104$917
23 years$2,831$2,210$1,707$1,306$991$814
24 years$2,685$2,071$1,579$1,191$891$724
25 years$2,550$1,944$1,462$1,088$802$645
26 years$2,426$1,827$1,356$995$722$574
27 years$2,311$1,719$1,259$911$651$512
28 years$2,204$1,620$1,171$834$588$457
29 years$2,105$1,528$1,090$765$531$408
30 years$2,013$1,443$1,015$702$479$365
31 years$1,927$1,364$946$645$433$326
32 years$1,847$1,291$883$593$392$292
33 years$1,771$1,223$824$545$355$261
34 years$1,700$1,159$770$501$321$234
35 years$1,634$1,099$720$462$291$209
36 years$1,571$1,043$674$425$264$187
37 years$1,511$991$630$392$239$168
38 years$1,455$942$590$361$217$150
39 years$1,402$895$553$333$196$135
40 years$1,352$852$518$307$178$121
41 years$1,304$811$486$283$162$108
42 years$1,259$772$456$261$147$97
43 years$1,216$736$428$241$133$87
44 years$1,175$701$402$223$121$78
45 years$1,136$669$377$206$110$70
46 years$1,099$638$354$190$100$63
47 years$1,063$609$333$176$90$56
48 years$1,029$581$313$162$82$50
49 years$997$555$294$150$75$45
50 years$966$530$276$139$68$41

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $989,000, adding $3,928 every year, while hoping to spend $55,932 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: 74/9/17 Blend
39$989,000$989,000$989,000$989,000
40$1,093,930$1,041,513$1,026,183$1,170,356
41$1,145,999$1,033,036$1,001,049$1,213,041
42$1,201,505$1,022,269$973,198$1,252,556
43$1,260,740$1,009,040$942,481$1,294,380
44$1,324,021$993,169$908,740$1,338,729
45$1,391,700$974,463$871,812$1,385,841
46$1,464,159$952,718$831,524$1,435,981
47$1,541,821$927,719$787,697$1,489,439
48$1,625,146$899,236$740,144$1,546,539
49$1,714,641$867,029$688,669$1,607,635
50$1,810,862$830,841$633,067$1,673,122
51$1,914,420$790,402$573,125$1,743,433
52$2,025,984$745,425$508,618$1,819,050
53$2,146,291$695,607$439,313$1,900,504
54$2,276,149$640,628$364,966$1,988,381
55$2,416,447$580,150$285,324$2,083,329
56$2,568,162$513,815$200,120$2,186,065
57$2,732,367$441,244$109,076$2,297,378
58$2,910,242$362,039$11,903$2,418,145
59$3,103,084$275,776$0$2,549,328
60$3,312,319$182,010$0$2,708,647
61$3,539,518$80,270$0$2,884,013
62$3,786,405$0$0$3,074,625
63$4,054,879$0$0$3,284,947
64$4,347,028$0$0$3,522,505
65$4,665,151$0$0$3,781,222
66$5,011,776$0$0$4,063,160
67$5,389,687$0$0$4,370,587
68$5,801,946$0$0$4,706,002
69$6,251,925$0$0$5,072,151
70$6,743,334$0$0$5,472,061
71$7,280,259$0$0$5,909,062
72$7,867,196$0$0$6,386,821
73$8,509,099$0$0$6,909,375
74$9,211,418$0$0$7,481,169
75$9,980,157$0$0$8,107,098
76$10,821,927$0$0$8,792,551
77$11,744,007$0$0$9,543,465
78$12,754,413$0$0$10,366,374
79$13,861,975$0$0$11,268,479
80$15,076,417$0$0$12,257,708
81$16,408,448$0$0$13,342,793
82$17,869,864$0$0$14,533,354
83$19,473,660$0$0$15,839,983
84$21,234,146$0$0$17,274,352
85$23,167,089$0$0$18,849,315
86$25,289,854$0$0$20,579,034
87$27,621,572$0$0$22,479,107
88$30,183,318$0$0$24,566,719
89$32,998,309$0$0$26,860,802
90$36,092,123$0$0$29,382,212
91$39,492,937$0$0$32,153,927
92$43,231,796$0$0$35,201,261
93$47,342,901$0$0$38,552,103
94$51,863,936$0$0$42,237,181
95$56,836,416$0$0$46,290,349
96$62,306,083$0$0$50,748,907
97$68,323,335$0$0$55,653,951
98$74,943,701$0$0$61,050,763
99$82,228,363$0$0$66,989,233
100$90,244,733$0$0$73,524,332