Can I retire at age 40 with 605,000?

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 $605,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$49,960$49,515$49,081$48,657$48,244$47,328
2 years$24,733$24,272$23,826$23,393$22,973$22,054
3 years$16,325$15,862$15,417$14,988$14,575$13,681
4 years$12,122$11,660$11,220$10,798$10,395$9,533
5 years$9,600$9,142$8,707$8,294$7,902$7,075
6 years$7,920$7,465$7,036$6,633$6,253$5,461
7 years$6,720$6,269$5,847$5,453$5,085$4,330
8 years$5,821$5,374$4,959$4,575$4,219$3,499
9 years$5,122$4,679$4,271$3,896$3,553$2,868
10 years$4,563$4,124$3,724$3,359$3,027$2,377
11 years$4,106$3,672$3,278$2,923$2,603$1,987
12 years$3,725$3,295$2,909$2,564$2,256$1,673
13 years$3,403$2,978$2,599$2,264$1,967$1,416
14 years$3,128$2,707$2,336$2,009$1,725$1,204
15 years$2,889$2,473$2,109$1,792$1,518$1,028
16 years$2,680$2,269$1,912$1,605$1,342$880
17 years$2,497$2,089$1,740$1,442$1,190$756
18 years$2,333$1,931$1,588$1,299$1,058$650
19 years$2,187$1,789$1,454$1,174$943$561
20 years$2,056$1,663$1,334$1,063$842$484
21 years$1,938$1,549$1,227$965$754$419
22 years$1,830$1,446$1,131$877$676$363
23 years$1,732$1,352$1,044$799$607$314
24 years$1,642$1,267$966$729$545$273
25 years$1,560$1,189$895$666$491$237
26 years$1,484$1,117$830$609$442$206
27 years$1,414$1,052$770$557$398$179
28 years$1,348$991$716$510$359$156
29 years$1,288$935$667$468$325$135
30 years$1,232$883$621$430$293$118
31 years$1,179$835$579$394$265$103
32 years$1,130$790$540$363$240$89
33 years$1,083$748$504$333$217$78
34 years$1,040$709$471$307$197$68
35 years$999$672$440$282$178$59
36 years$961$638$412$260$161$52
37 years$925$606$386$240$146$45
38 years$890$576$361$221$133$39
39 years$858$548$338$204$120$34
40 years$827$521$317$188$109$30
41 years$798$496$297$173$99$26
42 years$770$472$279$160$90$23
43 years$744$450$262$148$81$20
44 years$719$429$246$136$74$17
45 years$695$409$231$126$67$15
46 years$672$390$217$116$61$13
47 years$650$372$204$107$55$11
48 years$630$356$191$99$50$10
49 years$610$340$180$92$46$9
50 years$591$324$169$85$41$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $605,000, adding $6,073 every year, while hoping to spend $37,799 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: 40/48/12 Blend
39$605,000$605,000$605,000$605,000
40$672,974$640,909$631,532$697,252
41$701,400$632,096$612,470$706,157
42$731,458$621,584$591,503$711,600
43$763,275$609,250$568,527$716,654
44$796,990$594,964$543,433$721,302
45$832,753$578,587$516,109$725,527
46$870,730$559,974$486,434$729,313
47$911,101$538,970$454,287$732,646
48$954,064$515,410$419,536$735,516
49$999,835$489,122$382,047$737,914
50$1,048,651$459,922$341,679$739,834
51$1,100,772$427,616$298,283$741,274
52$1,156,481$392,000$251,706$742,239
53$1,216,091$352,857$201,787$742,737
54$1,279,943$309,958$148,358$742,782
55$1,348,412$263,060$91,243$742,395
56$1,421,910$211,909$30,258$741,608
57$1,500,886$156,235$0$740,458
58$1,585,838$95,751$0$743,456
59$1,677,308$30,158$0$750,629
60$1,775,894$0$0$758,201
61$1,882,252$0$0$787,878
62$1,997,103$0$0$837,187
63$2,121,239$0$0$890,547
64$2,255,530$0$0$948,341
65$2,400,934$0$0$1,010,989
66$2,558,502$0$0$1,078,954
67$2,729,391$0$0$1,152,744
68$2,914,873$0$0$1,232,918
69$3,116,348$0$0$1,320,091
70$3,335,354$0$0$1,414,941
71$3,573,585$0$0$1,518,211
72$3,832,903$0$0$1,630,723
73$4,115,358$0$0$1,753,376
74$4,423,205$0$0$1,887,164
75$4,758,928$0$0$2,033,179
76$5,125,258$0$0$2,192,624
77$5,525,202$0$0$2,366,821
78$5,962,072$0$0$2,557,230
79$6,439,511$0$0$2,765,453
80$6,961,532$0$0$2,993,258
81$7,532,553$0$0$3,242,589
82$8,157,437$0$0$3,515,589
83$8,841,542$0$0$3,814,616
84$9,590,765$0$0$4,142,267
85$10,411,601$0$0$4,501,403
86$11,311,203$0$0$4,895,175
87$12,297,450$0$0$5,327,053
88$13,379,019$0$0$5,800,857
89$14,565,465$0$0$6,320,799
90$15,867,314$0$0$6,891,516
91$17,296,162$0$0$7,518,114
92$18,864,779$0$0$8,206,220
93$20,587,234$0$0$8,962,033
94$22,479,024$0$0$9,792,380
95$24,557,222$0$0$10,704,784
96$26,840,633$0$0$11,707,530
97$29,349,978$0$0$12,809,749
98$32,108,081$0$0$14,021,498
99$35,140,090$0$0$15,353,857
100$38,473,708$0$0$16,819,036