Can I retire at age 42 with 850,000?

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 $850,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.3%
1 years$70,192$69,567$68,957$68,362$67,780$67,410
2 years$34,749$34,101$33,474$32,866$32,276$31,902
3 years$22,936$22,286$21,660$21,058$20,477$20,112
4 years$17,030$16,382$15,763$15,171$14,605$14,250
5 years$13,488$12,844$12,233$11,653$11,102$10,760
6 years$11,127$10,488$9,886$9,319$8,785$8,455
7 years$9,442$8,808$8,215$7,661$7,144$6,827
8 years$8,178$7,550$6,967$6,427$5,927$5,622
9 years$7,196$6,574$6,001$5,474$4,991$4,699
10 years$6,410$5,794$5,232$4,719$4,253$3,973
11 years$5,768$5,158$4,606$4,107$3,658$3,390
12 years$5,234$4,630$4,088$3,602$3,170$2,914
13 years$4,781$4,184$3,652$3,180$2,764$2,521
14 years$4,394$3,803$3,281$2,823$2,423$2,191
15 years$4,059$3,474$2,963$2,518$2,133$1,913
16 years$3,766$3,188$2,686$2,254$1,885$1,676
17 years$3,507$2,936$2,444$2,026$1,672$1,473
18 years$3,278$2,713$2,231$1,825$1,486$1,298
19 years$3,073$2,514$2,043$1,649$1,325$1,146
20 years$2,889$2,336$1,875$1,494$1,183$1,014
21 years$2,722$2,176$1,724$1,356$1,059$899
22 years$2,571$2,031$1,589$1,233$949$798
23 years$2,433$1,900$1,467$1,123$852$710
24 years$2,307$1,780$1,357$1,024$766$632
25 years$2,191$1,670$1,257$935$689$563
26 years$2,085$1,570$1,166$855$621$502
27 years$1,986$1,478$1,082$783$560$448
28 years$1,894$1,392$1,006$717$505$400
29 years$1,809$1,313$936$658$456$358
30 years$1,730$1,240$872$603$412$320
31 years$1,656$1,173$813$554$373$286
32 years$1,587$1,109$759$509$337$256
33 years$1,522$1,051$708$468$305$229
34 years$1,461$996$662$431$276$205
35 years$1,404$945$619$397$250$184
36 years$1,350$897$579$365$227$165
37 years$1,299$851$542$337$205$148
38 years$1,251$809$507$310$186$133
39 years$1,205$769$475$286$169$119
40 years$1,162$732$446$264$153$107
41 years$1,121$697$418$243$139$96
42 years$1,082$664$392$225$126$86
43 years$1,045$632$368$207$114$77
44 years$1,010$603$345$192$104$69
45 years$976$575$324$177$94$62
46 years$944$548$304$163$86$56
47 years$914$523$286$151$78$50
48 years$885$500$269$139$71$45
49 years$857$477$253$129$64$40
50 years$830$456$238$119$58$36

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $850,000, adding $2,705 every year, while hoping to spend $39,809 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: 63/11/26 Blend
41$850,000$850,000$850,000$850,000
42$939,490$894,440$881,265$992,046
43$992,962$895,911$868,431$1,029,428
44$1,050,553$896,120$853,833$1,065,617
45$1,112,643$894,963$837,369$1,104,274
46$1,179,646$892,330$818,935$1,145,645
47$1,252,019$888,103$798,418$1,190,005
48$1,330,263$882,159$775,704$1,237,656
49$1,414,931$874,365$750,670$1,288,933
50$1,506,627$864,583$723,191$1,344,208
51$1,606,019$852,663$693,134$1,403,889
52$1,713,838$838,449$660,360$1,468,431
53$1,830,892$821,775$624,724$1,538,335
54$1,958,066$802,465$586,075$1,614,156
55$2,096,334$780,332$544,254$1,696,506
56$2,246,771$755,178$499,097$1,786,062
57$2,410,554$726,795$450,430$1,883,575
58$2,588,985$694,962$398,073$1,989,872
59$2,783,490$659,444$341,838$2,105,866
60$2,995,644$619,994$281,527$2,232,569
61$3,227,177$576,351$216,935$2,371,098
62$3,479,994$528,238$147,848$2,522,686
63$3,756,194$475,362$74,041$2,688,694
64$4,058,085$417,414$0$2,870,629
65$4,388,210$354,067$0$3,071,463
66$4,749,368$284,977$0$3,313,726
67$5,144,641$209,779$0$3,578,953
68$5,577,423$128,087$0$3,869,455
69$6,051,453$39,495$0$4,187,781
70$6,570,844$0$0$4,536,737
71$7,140,132$0$0$4,926,247
72$7,764,307$0$0$5,358,614
73$8,448,868$0$0$5,832,875
74$9,199,871$0$0$6,353,232
75$10,023,987$0$0$6,924,316
76$10,928,564$0$0$7,551,227
77$11,921,694$0$0$8,239,582
78$13,012,294$0$0$8,995,571
79$14,210,184$0$0$9,826,011
80$15,526,184$0$0$10,738,411
81$16,972,213$0$0$11,741,046
82$18,561,401$0$0$12,843,030
83$20,308,215$0$0$14,054,405
84$22,228,589$0$0$15,386,234
85$24,340,084$0$0$16,850,706
86$26,662,043$0$0$18,461,248
87$29,215,778$0$0$20,232,657
88$32,024,772$0$0$22,181,232
89$35,114,896$0$0$24,324,935
90$38,514,657$0$0$26,683,553
91$42,255,461$0$0$29,278,892
92$46,371,915$0$0$32,134,974
93$50,902,149$0$0$35,278,269
94$55,888,176$0$0$38,737,945
95$61,376,289$0$0$42,546,139
96$67,417,497$0$0$46,738,261
97$74,068,003$0$0$51,353,331
98$81,389,740$0$0$56,434,343
99$89,450,948$0$0$62,028,671
100$98,326,823$0$0$68,188,519