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%13.5%
1 years$70,192$69,567$68,957$68,362$67,780$66,795
2 years$34,749$34,101$33,474$32,866$32,276$31,286
3 years$22,936$22,286$21,660$21,058$20,477$19,512
4 years$17,030$16,382$15,763$15,171$14,605$13,672
5 years$13,488$12,844$12,233$11,653$11,102$10,206
6 years$11,127$10,488$9,886$9,319$8,785$7,925
7 years$9,442$8,808$8,215$7,661$7,144$6,322
8 years$8,178$7,550$6,967$6,427$5,927$5,141
9 years$7,196$6,574$6,001$5,474$4,991$4,242
10 years$6,410$5,794$5,232$4,719$4,253$3,539
11 years$5,768$5,158$4,606$4,107$3,658$2,979
12 years$5,234$4,630$4,088$3,602$3,170$2,526
13 years$4,781$4,184$3,652$3,180$2,764$2,153
14 years$4,394$3,803$3,281$2,823$2,423$1,845
15 years$4,059$3,474$2,963$2,518$2,133$1,587
16 years$3,766$3,188$2,686$2,254$1,885$1,369
17 years$3,507$2,936$2,444$2,026$1,672$1,185
18 years$3,278$2,713$2,231$1,825$1,486$1,028
19 years$3,073$2,514$2,043$1,649$1,325$894
20 years$2,889$2,336$1,875$1,494$1,183$778
21 years$2,722$2,176$1,724$1,356$1,059$679
22 years$2,571$2,031$1,589$1,233$949$593
23 years$2,433$1,900$1,467$1,123$852$518
24 years$2,307$1,780$1,357$1,024$766$453
25 years$2,191$1,670$1,257$935$689$397
26 years$2,085$1,570$1,166$855$621$348
27 years$1,986$1,478$1,082$783$560$305
28 years$1,894$1,392$1,006$717$505$268
29 years$1,809$1,313$936$658$456$235
30 years$1,730$1,240$872$603$412$207
31 years$1,656$1,173$813$554$373$181
32 years$1,587$1,109$759$509$337$160
33 years$1,522$1,051$708$468$305$140
34 years$1,461$996$662$431$276$123
35 years$1,404$945$619$397$250$108
36 years$1,350$897$579$365$227$95
37 years$1,299$851$542$337$205$84
38 years$1,251$809$507$310$186$74
39 years$1,205$769$475$286$169$65
40 years$1,162$732$446$264$153$57
41 years$1,121$697$418$243$139$50
42 years$1,082$664$392$225$126$44
43 years$1,045$632$368$207$114$39
44 years$1,010$603$345$192$104$34
45 years$976$575$324$177$94$30
46 years$944$548$304$163$86$27
47 years$914$523$286$151$78$24
48 years$885$500$269$139$71$21
49 years$857$477$253$129$64$18
50 years$830$456$238$119$58$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $850,000, adding $4,949 every year, while hoping to spend $45,370 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: 47/38/15 Blend
41$850,000$850,000$850,000$850,000
42$941,805$896,755$883,580$981,874
43$989,596$892,423$864,906$1,005,826
44$1,040,740$886,357$844,087$1,026,780
45$1,095,534$878,426$821,001$1,048,532
46$1,154,298$868,489$795,525$1,071,173
47$1,217,387$856,396$767,525$1,094,807
48$1,285,189$841,988$736,867$1,119,552
49$1,358,132$825,099$703,405$1,145,540
50$1,436,684$805,551$666,992$1,172,919
51$1,521,358$783,156$627,468$1,201,856
52$1,612,721$757,714$584,673$1,232,540
53$1,711,392$729,016$538,433$1,265,182
54$1,818,054$696,838$488,570$1,300,018
55$1,933,457$660,945$434,899$1,337,314
56$2,058,425$621,086$377,223$1,377,368
57$2,193,864$576,998$315,339$1,420,513
58$2,340,770$528,403$249,035$1,467,120
59$2,500,239$475,006$178,089$1,517,605
60$2,673,476$416,494$102,268$1,572,432
61$2,861,807$352,539$21,330$1,632,119
62$3,066,691$282,793$0$1,697,245
63$3,289,732$206,888$0$1,778,863
64$3,532,695$124,436$0$1,871,601
65$3,797,524$35,027$0$1,972,883
66$4,086,357$0$0$2,083,645
67$4,401,548$0$0$2,230,752
68$4,745,687$0$0$2,407,452
69$5,121,627$0$0$2,600,575
70$5,532,507$0$0$2,811,744
71$5,981,783$0$0$3,042,749
72$6,473,262$0$0$3,295,559
73$7,011,134$0$0$3,572,342
74$7,600,013$0$0$3,875,488
75$8,244,981$0$0$4,207,625
76$8,951,633$0$0$4,571,651
77$9,726,132$0$0$4,970,755
78$10,575,266$0$0$5,408,451
79$11,506,508$0$0$5,888,608
80$12,528,093$0$0$6,415,489
81$13,649,089$0$0$6,993,789
82$14,879,486$0$0$7,628,678
83$16,230,285$0$0$8,325,854
84$17,713,609$0$0$9,091,593
85$19,342,809$0$0$9,932,806
86$21,132,592$0$0$10,857,110
87$23,099,164$0$0$11,872,894
88$25,260,374$0$0$12,989,402
89$27,635,888$0$0$14,216,816
90$30,247,371$0$0$15,566,355
91$33,118,693$0$0$17,050,379
92$36,276,152$0$0$18,682,505
93$39,748,721$0$0$20,477,737
94$43,568,323$0$0$22,452,605
95$47,770,129$0$0$24,625,324
96$52,392,892$0$0$27,015,960
97$57,479,307$0$0$29,646,625
98$63,076,421$0$0$32,541,682
99$69,236,069$0$0$35,727,974
100$76,015,365$0$0$39,235,080