Can I retire at age 42 with 425,000?

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 $425,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.9%
1 years$35,096$34,783$34,478$34,181$33,890$33,480
2 years$17,374$17,051$16,737$16,433$16,138$15,726
3 years$11,468$11,143$10,830$10,529$10,239$9,837
4 years$8,515$8,191$7,881$7,585$7,302$6,914
5 years$6,744$6,422$6,116$5,826$5,551$5,177
6 years$5,564$5,244$4,943$4,659$4,392$4,033
7 years$4,721$4,404$4,108$3,831$3,572$3,228
8 years$4,089$3,775$3,484$3,213$2,963$2,634
9 years$3,598$3,287$3,000$2,737$2,496$2,181
10 years$3,205$2,897$2,616$2,359$2,126$1,826
11 years$2,884$2,579$2,303$2,053$1,829$1,543
12 years$2,617$2,315$2,044$1,801$1,585$1,313
13 years$2,391$2,092$1,826$1,590$1,382$1,124
14 years$2,197$1,902$1,641$1,412$1,211$967
15 years$2,029$1,737$1,481$1,259$1,067$835
16 years$1,883$1,594$1,343$1,127$943$724
17 years$1,754$1,468$1,222$1,013$836$629
18 years$1,639$1,356$1,116$913$743$548
19 years$1,537$1,257$1,021$825$662$478
20 years$1,444$1,168$937$747$592$418
21 years$1,361$1,088$862$678$530$367
22 years$1,286$1,016$795$616$475$322
23 years$1,217$950$734$561$426$282
24 years$1,154$890$679$512$383$248
25 years$1,096$835$628$468$345$219
26 years$1,042$785$583$428$310$192
27 years$993$739$541$391$280$170
28 years$947$696$503$359$253$150
29 years$905$657$468$329$228$132
30 years$865$620$436$302$206$116
31 years$828$586$407$277$186$103
32 years$794$555$379$255$168$91
33 years$761$525$354$234$152$80
34 years$731$498$331$215$138$71
35 years$702$472$309$198$125$63
36 years$675$448$289$183$113$55
37 years$650$426$271$168$103$49
38 years$625$405$254$155$93$43
39 years$603$385$238$143$84$38
40 years$581$366$223$132$77$34
41 years$561$348$209$122$69$30
42 years$541$332$196$112$63$27
43 years$523$316$184$104$57$24
44 years$505$301$173$96$52$21
45 years$488$287$162$88$47$18
46 years$472$274$152$82$43$16
47 years$457$262$143$75$39$14
48 years$442$250$134$70$35$13
49 years$428$239$126$64$32$11
50 years$415$228$119$60$29$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $425,000, adding $4,958 every year, while hoping to spend $25,406 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: 37/33/30 Blend
41$425,000$425,000$425,000$425,000
42$473,464$450,939$444,352$486,596
43$494,726$446,003$432,206$491,847
44$517,304$439,974$418,801$494,864
45$541,308$432,771$404,070$497,647
46$566,854$424,310$387,938$500,190
47$594,071$414,499$370,332$502,492
48$623,100$403,243$351,172$504,553
49$654,096$390,441$330,376$506,376
50$687,227$375,987$307,857$507,965
51$722,680$359,766$283,527$509,329
52$760,658$341,660$257,289$510,481
53$801,385$321,540$229,048$511,438
54$845,104$299,273$198,699$512,220
55$892,084$274,718$166,135$512,856
56$942,622$247,724$131,245$513,379
57$997,040$218,133$93,913$513,830
58$1,055,694$185,777$54,015$514,259
59$1,118,974$150,480$11,424$514,724
60$1,187,311$112,055$0$515,295
61$1,261,176$70,305$0$526,944
62$1,341,086$25,020$0$543,484
63$1,427,613$0$0$561,411
64$1,521,382$0$0$589,621
65$1,623,082$0$0$630,121
66$1,733,471$0$0$674,133
67$1,853,382$0$0$721,996
68$1,983,731$0$0$774,083
69$2,125,527$0$0$830,804
70$2,279,879$0$0$892,610
71$2,448,008$0$0$959,998
72$2,631,257$0$0$1,033,514
73$2,831,104$0$0$1,113,760
74$3,049,176$0$0$1,201,398
75$3,287,265$0$0$1,297,157
76$3,547,341$0$0$1,401,840
77$3,831,576$0$0$1,516,331
78$4,142,358$0$0$1,641,602
79$4,482,319$0$0$1,778,724
80$4,854,356$0$0$1,928,878
81$5,261,657$0$0$2,093,362
82$5,707,737$0$0$2,273,608
83$6,196,462$0$0$2,471,190
84$6,732,093$0$0$2,687,845
85$7,319,322$0$0$2,925,483
86$7,963,315$0$0$3,186,210
87$8,669,765$0$0$3,472,344
88$9,444,939$0$0$3,786,439
89$10,295,743$0$0$4,131,310
90$11,229,783$0$0$4,510,055
91$12,255,437$0$0$4,926,089
92$13,381,935$0$0$5,383,172
93$14,619,443$0$0$5,885,449
94$15,979,163$0$0$6,437,483
95$17,473,433$0$0$7,044,304
96$19,115,847$0$0$7,711,452
97$20,921,381$0$0$8,445,031
98$22,906,534$0$0$9,251,766
99$25,089,486$0$0$10,139,066
100$27,490,262$0$0$11,115,094