Can I retire at age 40 with 638,000?

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 $638,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$52,685$52,216$51,758$51,311$50,875$50,156
2 years$26,082$25,596$25,125$24,669$24,226$23,503
3 years$17,215$16,727$16,258$15,806$15,370$14,666
4 years$12,783$12,296$11,832$11,387$10,962$10,282
5 years$10,124$9,641$9,182$8,746$8,333$7,679
6 years$8,352$7,872$7,420$6,995$6,594$5,966
7 years$7,087$6,611$6,166$5,751$5,363$4,761
8 years$6,138$5,667$5,229$4,824$4,449$3,874
9 years$5,401$4,934$4,504$4,109$3,746$3,199
10 years$4,812$4,349$3,927$3,542$3,192$2,671
11 years$4,330$3,872$3,457$3,083$2,745$2,249
12 years$3,928$3,475$3,068$2,704$2,379$1,908
13 years$3,589$3,140$2,741$2,387$2,075$1,628
14 years$3,298$2,855$2,463$2,119$1,819$1,396
15 years$3,047$2,608$2,224$1,890$1,601$1,201
16 years$2,827$2,393$2,016$1,692$1,415$1,037
17 years$2,633$2,203$1,835$1,520$1,255$898
18 years$2,461$2,036$1,675$1,370$1,116$780
19 years$2,307$1,887$1,533$1,238$994$679
20 years$2,168$1,754$1,407$1,121$888$591
21 years$2,043$1,633$1,294$1,018$795$516
22 years$1,930$1,525$1,193$925$713$451
23 years$1,827$1,426$1,101$843$640$395
24 years$1,732$1,336$1,019$769$575$346
25 years$1,645$1,254$943$702$517$303
26 years$1,565$1,178$875$642$466$266
27 years$1,491$1,109$812$587$420$233
28 years$1,422$1,045$755$538$379$205
29 years$1,358$986$703$494$342$180
30 years$1,299$931$655$453$309$158
31 years$1,243$880$610$416$280$139
32 years$1,191$833$569$382$253$122
33 years$1,143$789$532$352$229$108
34 years$1,097$747$497$323$207$95
35 years$1,054$709$464$298$188$83
36 years$1,013$673$435$274$170$73
37 years$975$639$407$253$154$65
38 years$939$607$381$233$140$57
39 years$905$578$357$215$127$50
40 years$872$549$334$198$115$44
41 years$841$523$314$183$104$39
42 years$812$498$294$169$95$34
43 years$784$475$276$156$86$30
44 years$758$452$259$144$78$27
45 years$733$431$243$133$71$24
46 years$709$412$229$123$64$21
47 years$686$393$215$113$58$18
48 years$664$375$202$105$53$16
49 years$643$358$190$97$48$14
50 years$623$342$178$89$44$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $638,000, adding $3,521 every year, while hoping to spend $24,500 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: 68/7/25 Blend
39$638,000$638,000$638,000$638,000
40$706,708$672,894$663,005$749,998
41$752,724$679,798$659,148$786,402
42$802,613$686,219$654,340$823,083
43$856,744$692,108$648,525$862,645
44$915,522$697,411$641,641$905,373
45$979,395$702,074$633,625$951,580
46$1,048,852$706,035$624,411$1,001,615
47$1,124,436$709,231$613,929$1,055,859
48$1,206,740$711,595$602,108$1,114,734
49$1,296,419$713,055$588,870$1,178,705
50$1,394,193$713,534$574,136$1,248,286
51$1,500,854$712,950$557,823$1,324,044
52$1,617,275$711,219$539,844$1,406,604
53$1,744,416$708,247$520,107$1,496,654
54$1,883,333$703,939$498,518$1,594,956
55$2,035,192$698,190$474,977$1,702,348
56$2,201,272$690,893$449,380$1,819,755
57$2,382,986$681,930$421,617$1,948,199
58$2,581,885$671,179$391,576$2,088,804
59$2,799,680$658,510$359,137$2,242,813
60$3,038,256$643,785$324,177$2,411,594
61$3,299,687$626,859$286,565$2,596,659
62$3,586,256$607,577$246,166$2,799,672
63$3,900,480$585,774$202,839$3,022,472
64$4,245,131$561,279$156,436$3,267,083
65$4,623,261$533,908$106,803$3,535,740
66$5,038,231$503,467$53,778$3,830,907
67$5,493,745$469,751$0$4,155,300
68$5,993,882$432,544$0$4,512,665
69$6,543,137$391,617$0$4,920,913
70$7,146,458$346,728$0$5,369,375
71$7,809,300$297,621$0$5,862,118
72$8,537,669$244,025$0$6,403,625
73$9,338,185$185,656$0$6,998,832
74$10,218,138$122,211$0$7,653,183
75$11,185,561$53,372$0$8,372,671
76$12,249,304$0$0$9,163,904
77$13,419,118$0$0$10,035,795
78$14,705,745$0$0$10,999,313
79$16,121,020$0$0$12,059,216
80$17,677,986$0$0$13,225,275
81$19,391,010$0$0$14,508,257
82$21,275,923$0$0$15,920,023
83$23,350,168$0$0$17,473,646
84$25,632,966$0$0$19,183,526
85$28,145,493$0$0$21,065,532
86$30,911,084$0$0$23,137,150
87$33,955,449$0$0$25,417,645
88$37,306,921$0$0$27,928,246
89$40,996,714$0$0$30,692,346
90$45,059,228$0$0$33,735,719
91$49,532,366$0$0$37,086,769
92$54,457,891$0$0$40,776,790
93$59,881,827$0$0$44,840,270
94$65,854,886$0$0$49,315,209
95$72,432,947$0$0$54,243,480
96$79,677,587$0$0$59,671,225
97$87,656,660$0$0$65,649,290
98$96,444,936$0$0$72,233,703
99$106,124,805$0$0$79,486,204
100$116,787,059$0$0$87,474,827