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%11.1%
1 years$35,096$34,783$34,478$34,181$33,890$33,733
2 years$17,374$17,051$16,737$16,433$16,138$15,980
3 years$11,468$11,143$10,830$10,529$10,239$10,084
4 years$8,515$8,191$7,881$7,585$7,302$7,152
5 years$6,744$6,422$6,116$5,826$5,551$5,406
6 years$5,564$5,244$4,943$4,659$4,392$4,252
7 years$4,721$4,404$4,108$3,831$3,572$3,437
8 years$4,089$3,775$3,484$3,213$2,963$2,834
9 years$3,598$3,287$3,000$2,737$2,496$2,372
10 years$3,205$2,897$2,616$2,359$2,126$2,008
11 years$2,884$2,579$2,303$2,053$1,829$1,715
12 years$2,617$2,315$2,044$1,801$1,585$1,476
13 years$2,391$2,092$1,826$1,590$1,382$1,278
14 years$2,197$1,902$1,641$1,412$1,211$1,113
15 years$2,029$1,737$1,481$1,259$1,067$973
16 years$1,883$1,594$1,343$1,127$943$853
17 years$1,754$1,468$1,222$1,013$836$751
18 years$1,639$1,356$1,116$913$743$663
19 years$1,537$1,257$1,021$825$662$586
20 years$1,444$1,168$937$747$592$519
21 years$1,361$1,088$862$678$530$461
22 years$1,286$1,016$795$616$475$410
23 years$1,217$950$734$561$426$365
24 years$1,154$890$679$512$383$325
25 years$1,096$835$628$468$345$290
26 years$1,042$785$583$428$310$259
27 years$993$739$541$391$280$232
28 years$947$696$503$359$253$207
29 years$905$657$468$329$228$186
30 years$865$620$436$302$206$166
31 years$828$586$407$277$186$149
32 years$794$555$379$255$168$134
33 years$761$525$354$234$152$120
34 years$731$498$331$215$138$107
35 years$702$472$309$198$125$96
36 years$675$448$289$183$113$87
37 years$650$426$271$168$103$78
38 years$625$405$254$155$93$70
39 years$603$385$238$143$84$63
40 years$581$366$223$132$77$56
41 years$561$348$209$122$69$51
42 years$541$332$196$112$63$46
43 years$523$316$184$104$57$41
44 years$505$301$173$96$52$37
45 years$488$287$162$88$47$33
46 years$472$274$152$82$43$30
47 years$457$262$143$75$39$27
48 years$442$250$134$70$35$24
49 years$428$239$126$64$32$22
50 years$415$228$119$60$29$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $425,000, adding $3,288 every year, while hoping to spend $22,506 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: 39/40/21 Blend
41$425,000$425,000$425,000$425,000
42$471,742$449,217$442,629$487,077
43$495,913$447,282$433,511$496,490
44$521,796$444,498$423,333$504,287
45$549,540$440,800$412,036$512,260
46$579,312$436,118$399,558$520,436
47$611,293$430,379$385,834$528,848
48$645,682$423,505$370,797$537,537
49$682,698$415,412$354,375$546,544
50$722,580$406,015$336,494$555,922
51$765,594$395,221$317,077$565,727
52$812,028$382,930$296,043$576,025
53$862,202$369,040$273,307$586,892
54$916,464$353,441$248,780$598,413
55$975,201$336,017$222,372$610,684
56$1,038,834$316,644$193,984$623,815
57$1,107,829$295,193$163,516$637,929
58$1,182,696$271,527$130,863$653,166
59$1,264,000$245,500$95,915$669,683
60$1,352,357$216,959$58,557$687,655
61$1,448,448$185,741$18,670$707,282
62$1,553,023$151,675$0$728,787
63$1,666,904$114,581$0$757,774
64$1,790,999$74,266$0$793,980
65$1,926,305$30,528$0$833,561
66$2,073,920$0$0$876,901
67$2,235,052$0$0$931,837
68$2,411,031$0$0$1,006,564
69$2,603,323$0$0$1,088,273
70$2,813,539$0$0$1,177,656
71$3,043,454$0$0$1,275,476
72$3,295,023$0$0$1,382,570
73$3,570,398$0$0$1,499,863
74$3,871,948$0$0$1,628,373
75$4,202,284$0$0$1,769,220
76$4,564,279$0$0$1,923,638
77$4,961,099$0$0$2,092,986
78$5,396,228$0$0$2,278,761
79$5,873,508$0$0$2,482,613
80$6,397,166$0$0$2,706,357
81$6,971,862$0$0$2,951,995
82$7,602,725$0$0$3,221,729
83$8,295,407$0$0$3,517,989
84$9,056,135$0$0$3,843,447
85$9,891,767$0$0$4,201,051
86$10,809,859$0$0$4,594,046
87$11,818,734$0$0$5,026,008
88$12,927,561$0$0$5,500,876
89$14,146,443$0$0$6,022,991
90$15,486,510$0$0$6,597,134
91$16,960,023$0$0$7,228,572
92$18,580,492$0$0$7,923,112
93$20,362,801$0$0$8,687,146
94$22,323,350$0$0$9,527,723
95$24,480,205$0$0$10,452,604
96$26,853,276$0$0$11,470,345
97$29,464,497$0$0$12,590,370
98$32,338,037$0$0$13,823,064
99$35,500,525$0$0$15,179,870
100$38,981,302$0$0$16,673,396