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%19.7%
1 years$70,192$69,567$68,957$68,362$67,780$65,142
2 years$34,749$34,101$33,474$32,866$32,276$29,651
3 years$22,936$22,286$21,660$21,058$20,477$17,947
4 years$17,030$16,382$15,763$15,171$14,605$12,188
5 years$13,488$12,844$12,233$11,653$11,102$8,806
6 years$11,127$10,488$9,886$9,319$8,785$6,610
7 years$9,442$8,808$8,215$7,661$7,144$5,091
8 years$8,178$7,550$6,967$6,427$5,927$3,992
9 years$7,196$6,574$6,001$5,474$4,991$3,173
10 years$6,410$5,794$5,232$4,719$4,253$2,547
11 years$5,768$5,158$4,606$4,107$3,658$2,060
12 years$5,234$4,630$4,088$3,602$3,170$1,677
13 years$4,781$4,184$3,652$3,180$2,764$1,372
14 years$4,394$3,803$3,281$2,823$2,423$1,126
15 years$4,059$3,474$2,963$2,518$2,133$927
16 years$3,766$3,188$2,686$2,254$1,885$766
17 years$3,507$2,936$2,444$2,026$1,672$633
18 years$3,278$2,713$2,231$1,825$1,486$525
19 years$3,073$2,514$2,043$1,649$1,325$436
20 years$2,889$2,336$1,875$1,494$1,183$362
21 years$2,722$2,176$1,724$1,356$1,059$301
22 years$2,571$2,031$1,589$1,233$949$250
23 years$2,433$1,900$1,467$1,123$852$209
24 years$2,307$1,780$1,357$1,024$766$174
25 years$2,191$1,670$1,257$935$689$145
26 years$2,085$1,570$1,166$855$621$121
27 years$1,986$1,478$1,082$783$560$101
28 years$1,894$1,392$1,006$717$505$84
29 years$1,809$1,313$936$658$456$70
30 years$1,730$1,240$872$603$412$59
31 years$1,656$1,173$813$554$373$49
32 years$1,587$1,109$759$509$337$41
33 years$1,522$1,051$708$468$305$34
34 years$1,461$996$662$431$276$28
35 years$1,404$945$619$397$250$24
36 years$1,350$897$579$365$227$20
37 years$1,299$851$542$337$205$17
38 years$1,251$809$507$310$186$14
39 years$1,205$769$475$286$169$12
40 years$1,162$732$446$264$153$10
41 years$1,121$697$418$243$139$8
42 years$1,082$664$392$225$126$7
43 years$1,045$632$368$207$114$6
44 years$1,010$603$345$192$104$5
45 years$976$575$324$177$94$4
46 years$944$548$304$163$86$3
47 years$914$523$286$151$78$3
48 years$885$500$269$139$71$2
49 years$857$477$253$129$64$2
50 years$830$456$238$119$58$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $850,000, adding $4,480 every year, while hoping to spend $37,577 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: 80/9/11 Blend
41$850,000$850,000$850,000$850,000
42$941,321$896,271$883,096$1,014,466
43$997,354$900,207$872,698$1,067,055
44$1,057,843$903,076$860,693$1,119,401
45$1,123,203$904,786$846,986$1,175,742
46$1,193,890$905,241$831,479$1,236,460
47$1,270,404$904,335$814,072$1,301,974
48$1,353,297$901,959$794,655$1,372,749
49$1,443,175$897,997$773,117$1,449,294
50$1,540,703$892,323$749,341$1,532,172
51$1,646,614$884,806$723,203$1,622,002
52$1,761,714$875,307$694,575$1,719,468
53$1,886,889$863,677$663,324$1,825,321
54$2,023,114$849,760$629,308$1,940,391
55$2,171,464$833,390$592,382$2,065,591
56$2,333,117$814,390$552,391$2,201,928
57$2,509,374$792,575$509,175$2,350,513
58$2,701,666$767,746$462,568$2,512,569
59$2,911,566$739,696$412,394$2,689,444
60$3,140,807$708,202$358,470$2,882,625
61$3,391,296$673,031$300,606$3,093,749
62$3,665,135$633,936$238,603$3,324,623
63$3,964,635$590,655$172,252$3,577,237
64$4,292,342$542,912$101,337$3,853,784
65$4,651,059$490,413$25,631$4,156,683
66$5,043,874$432,850$0$4,488,599
67$5,474,186$369,897$0$4,858,946
68$5,945,739$301,207$0$5,268,118
69$6,462,656$226,418$0$5,716,705
70$7,029,477$145,142$0$6,208,674
71$7,651,204$56,975$0$6,748,395
72$8,333,346$0$0$7,340,684
73$9,081,971$0$0$7,994,662
74$9,903,762$0$0$8,718,775
75$10,806,082$0$0$9,513,870
76$11,797,040$0$0$10,387,097
77$12,885,572$0$0$11,346,332
78$14,081,519$0$0$12,400,251
79$15,395,723$0$0$13,558,412
80$16,840,130$0$0$14,831,345
81$18,427,899$0$0$16,230,653
82$20,173,527$0$0$17,769,114
83$22,092,988$0$0$19,460,811
84$24,203,880$0$0$21,321,257
85$26,525,591$0$0$23,367,546
86$29,079,483$0$0$25,618,509
87$31,889,093$0$0$28,094,895
88$34,980,353$0$0$30,819,566
89$38,381,837$0$0$33,817,713
90$42,125,028$0$0$37,117,088
91$46,244,613$0$0$40,748,274
92$50,778,816$0$0$44,744,967
93$55,769,750$0$0$49,144,293
94$61,263,822$0$0$53,987,164
95$67,312,164$0$0$59,318,657
96$73,971,120$0$0$65,188,444
97$81,302,772$0$0$71,651,257
98$89,375,530$0$0$78,767,404
99$98,264,776$0$0$86,603,342
100$108,053,572$0$0$95,232,298