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%16%
1 years$70,192$69,567$68,957$68,362$67,780$66,115
2 years$34,749$34,101$33,474$32,866$32,276$30,609
3 years$22,936$22,286$21,660$21,058$20,477$18,860
4 years$17,030$16,382$15,763$15,171$14,605$13,049
5 years$13,488$12,844$12,233$11,653$11,102$9,614
6 years$11,127$10,488$9,886$9,319$8,785$7,365
7 years$9,442$8,808$8,215$7,661$7,144$5,792
8 years$8,178$7,550$6,967$6,427$5,927$4,643
9 years$7,196$6,574$6,001$5,474$4,991$3,774
10 years$6,410$5,794$5,232$4,719$4,253$3,101
11 years$5,768$5,158$4,606$4,107$3,658$2,569
12 years$5,234$4,630$4,088$3,602$3,170$2,143
13 years$4,781$4,184$3,652$3,180$2,764$1,797
14 years$4,394$3,803$3,281$2,823$2,423$1,514
15 years$4,059$3,474$2,963$2,518$2,133$1,280
16 years$3,766$3,188$2,686$2,254$1,885$1,085
17 years$3,507$2,936$2,444$2,026$1,672$922
18 years$3,278$2,713$2,231$1,825$1,486$786
19 years$3,073$2,514$2,043$1,649$1,325$671
20 years$2,889$2,336$1,875$1,494$1,183$573
21 years$2,722$2,176$1,724$1,356$1,059$490
22 years$2,571$2,031$1,589$1,233$949$420
23 years$2,433$1,900$1,467$1,123$852$360
24 years$2,307$1,780$1,357$1,024$766$309
25 years$2,191$1,670$1,257$935$689$265
26 years$2,085$1,570$1,166$855$621$228
27 years$1,986$1,478$1,082$783$560$196
28 years$1,894$1,392$1,006$717$505$168
29 years$1,809$1,313$936$658$456$145
30 years$1,730$1,240$872$603$412$125
31 years$1,656$1,173$813$554$373$107
32 years$1,587$1,109$759$509$337$92
33 years$1,522$1,051$708$468$305$80
34 years$1,461$996$662$431$276$68
35 years$1,404$945$619$397$250$59
36 years$1,350$897$579$365$227$51
37 years$1,299$851$542$337$205$44
38 years$1,251$809$507$310$186$38
39 years$1,205$769$475$286$169$33
40 years$1,162$732$446$264$153$28
41 years$1,121$697$418$243$139$24
42 years$1,082$664$392$225$126$21
43 years$1,045$632$368$207$114$18
44 years$1,010$603$345$192$104$15
45 years$976$575$324$177$94$13
46 years$944$548$304$163$86$11
47 years$914$523$286$151$78$10
48 years$885$500$269$139$71$9
49 years$857$477$253$129$64$7
50 years$830$456$238$119$58$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $850,000, adding $2,815 every year, while hoping to spend $50,761 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: 40/34/26 Blend
41$850,000$850,000$850,000$850,000
42$939,604$894,554$881,379$969,872
43$981,434$884,377$856,896$981,868
44$1,025,830$872,001$829,891$989,880
45$1,072,999$857,264$800,227$997,561
46$1,123,169$839,994$767,759$1,004,912
47$1,176,589$820,011$732,336$1,011,938
48$1,233,533$797,123$693,800$1,018,647
49$1,294,297$771,126$651,987$1,025,056
50$1,359,211$741,807$606,724$1,031,186
51$1,428,632$708,937$557,831$1,037,065
52$1,502,954$672,276$505,119$1,042,731
53$1,582,607$631,569$448,392$1,048,229
54$1,668,065$586,548$387,446$1,053,619
55$1,759,846$536,928$322,064$1,058,968
56$1,858,522$482,408$252,024$1,064,362
57$1,964,715$422,671$177,092$1,069,900
58$2,079,115$357,380$97,022$1,075,699
59$2,202,474$286,181$11,562$1,081,896
60$2,335,621$208,699$0$1,088,654
61$2,479,466$124,537$0$1,118,249
62$2,635,011$33,279$0$1,153,663
63$2,803,355$0$0$1,192,011
64$2,985,706$0$0$1,258,171
65$3,183,394$0$0$1,343,487
66$3,397,880$0$0$1,436,150
67$3,630,771$0$0$1,536,867
68$3,883,836$0$0$1,646,416
69$4,159,020$0$0$1,765,651
70$4,458,462$0$0$1,895,514
71$4,784,517$0$0$2,037,041
72$5,139,775$0$0$2,191,372
73$5,527,087$0$0$2,359,761
74$5,949,592$0$0$2,543,588
75$6,410,742$0$0$2,744,375
76$6,914,339$0$0$2,963,794
77$7,464,570$0$0$3,203,688
78$8,066,040$0$0$3,466,085
79$8,723,822$0$0$3,753,219
80$9,443,503$0$0$4,067,549
81$10,231,231$0$0$4,411,782
82$11,093,779$0$0$4,788,902
83$12,038,605$0$0$5,202,192
84$13,073,920$0$0$5,655,269
85$14,208,769$0$0$6,152,118
86$15,453,115$0$0$6,697,126
87$16,817,928$0$0$7,295,125
88$18,315,292$0$0$7,951,439
89$19,958,519$0$0$8,671,933
90$21,762,270$0$0$9,463,064
91$23,742,694$0$0$10,331,948
92$25,917,583$0$0$11,286,423
93$28,306,534$0$0$12,335,124
94$30,931,137$0$0$13,487,564
95$33,815,176$0$0$14,754,222
96$36,984,852$0$0$16,146,642
97$40,469,032$0$0$17,677,546
98$44,299,518$0$0$19,360,946
99$48,511,346$0$0$21,212,282
100$53,143,119$0$0$23,248,565