Can I retire at age 40 with 635,000?

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 $635,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.2%
1 years$52,438$51,971$51,515$51,070$50,636$49,153
2 years$25,959$25,476$25,007$24,553$24,112$22,630
3 years$17,134$16,649$16,181$15,731$15,298$13,863
4 years$12,723$12,239$11,776$11,334$10,911$9,534
5 years$10,076$9,595$9,139$8,705$8,294$6,980
6 years$8,313$7,835$7,385$6,962$6,563$5,312
7 years$7,053$6,580$6,137$5,724$5,337$4,150
8 years$6,110$5,640$5,205$4,801$4,428$3,303
9 years$5,376$4,911$4,483$4,090$3,729$2,665
10 years$4,789$4,329$3,908$3,525$3,177$2,174
11 years$4,309$3,854$3,441$3,068$2,732$1,787
12 years$3,910$3,459$3,054$2,691$2,368$1,479
13 years$3,572$3,126$2,728$2,376$2,065$1,230
14 years$3,283$2,841$2,451$2,109$1,810$1,028
15 years$3,032$2,595$2,213$1,881$1,594$862
16 years$2,813$2,381$2,007$1,684$1,409$724
17 years$2,620$2,193$1,826$1,513$1,249$610
18 years$2,449$2,027$1,667$1,364$1,110$515
19 years$2,296$1,878$1,526$1,232$990$436
20 years$2,158$1,745$1,400$1,116$884$369
21 years$2,034$1,626$1,288$1,013$791$313
22 years$1,921$1,517$1,187$921$709$266
23 years$1,818$1,419$1,096$839$637$226
24 years$1,724$1,330$1,014$765$572$192
25 years$1,637$1,248$939$699$515$163
26 years$1,557$1,173$871$639$464$139
27 years$1,484$1,104$809$585$418$118
28 years$1,415$1,040$752$536$377$101
29 years$1,352$981$700$491$341$86
30 years$1,293$927$652$451$308$73
31 years$1,237$876$607$414$278$62
32 years$1,186$829$567$381$252$53
33 years$1,137$785$529$350$228$45
34 years$1,092$744$494$322$206$39
35 years$1,049$706$462$296$187$33
36 years$1,009$670$432$273$169$28
37 years$970$636$405$251$153$24
38 years$934$605$379$232$139$20
39 years$900$575$355$214$126$17
40 years$868$547$333$197$114$15
41 years$838$521$312$182$104$13
42 years$808$496$293$168$94$11
43 years$781$472$275$155$85$9
44 years$754$450$258$143$78$8
45 years$729$429$242$132$70$7
46 years$705$410$227$122$64$6
47 years$683$391$214$113$58$5
48 years$661$373$201$104$53$4
49 years$640$356$189$96$48$4
50 years$620$340$177$89$44$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $635,000, adding $5,189 every year, while hoping to spend $40,389 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: 63/26/11 Blend
39$635,000$635,000$635,000$635,000
40$705,122$671,467$661,625$747,459
41$734,071$661,396$640,816$766,344
42$764,619$649,477$617,956$781,812
43$796,887$635,578$592,934$797,691
44$831,006$619,557$565,633$814,021
45$867,119$601,266$535,932$830,848
46$905,383$580,546$503,704$848,222
47$945,969$557,230$468,816$866,201
48$989,065$531,141$431,128$884,852
49$1,034,874$502,092$390,495$904,250
50$1,083,621$469,884$346,767$924,477
51$1,135,551$434,309$299,784$945,630
52$1,190,932$395,145$249,382$967,816
53$1,250,058$352,158$195,386$991,156
54$1,313,250$305,100$137,618$1,015,785
55$1,380,863$253,711$75,889$1,041,855
56$1,453,282$197,714$10,003$1,069,538
57$1,530,932$136,817$0$1,099,026
58$1,614,279$70,713$0$1,137,613
59$1,703,834$0$0$1,180,174
60$1,800,158$0$0$1,226,093
61$1,903,867$0$0$1,297,348
62$2,015,637$0$0$1,374,176
63$2,136,212$0$0$1,457,092
64$2,266,406$0$0$1,546,662
65$2,407,118$0$0$1,643,508
66$2,559,333$0$0$1,748,314
67$2,724,135$0$0$1,861,831
68$2,902,715$0$0$1,984,884
69$3,096,382$0$0$2,118,384
70$3,306,578$0$0$2,263,328
71$3,534,886$0$0$2,420,816
72$3,783,049$0$0$2,592,056
73$4,052,985$0$0$2,778,379
74$4,346,802$0$0$2,981,248
75$4,666,821$0$0$3,202,273
76$5,015,596$0$0$3,443,225
77$5,395,939$0$0$3,706,057
78$5,810,942$0$0$3,992,912
79$6,264,011$0$0$4,306,156
80$6,758,893$0$0$4,648,389
81$7,299,717$0$0$5,022,474
82$7,891,024$0$0$5,431,564
83$8,537,817$0$0$5,879,130
84$9,245,602$0$0$6,368,994
85$10,020,445$0$0$6,905,366
86$10,869,024$0$0$7,492,881
87$11,798,692$0$0$8,136,641
88$12,817,548$0$0$8,842,268
89$13,934,513$0$0$9,615,954
90$15,159,410$0$0$10,464,517
91$16,503,058$0$0$11,395,467
92$17,977,377$0$0$12,417,076
93$19,595,493$0$0$13,538,456
94$21,371,866$0$0$14,769,645
95$23,322,424$0$0$16,121,698
96$25,464,714$0$0$17,606,795
97$27,818,065$0$0$19,238,354
98$30,403,771$0$0$21,031,156
99$33,245,288$0$0$23,001,483
100$36,368,461$0$0$25,167,276