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%12.8%
1 years$52,685$52,216$51,758$51,311$50,875$50,281
2 years$26,082$25,596$25,125$24,669$24,226$23,628
3 years$17,215$16,727$16,258$15,806$15,370$14,787
4 years$12,783$12,296$11,832$11,387$10,962$10,398
5 years$10,124$9,641$9,182$8,746$8,333$7,790
6 years$8,352$7,872$7,420$6,995$6,594$6,072
7 years$7,087$6,611$6,166$5,751$5,363$4,862
8 years$6,138$5,667$5,229$4,824$4,449$3,970
9 years$5,401$4,934$4,504$4,109$3,746$3,289
10 years$4,812$4,349$3,927$3,542$3,192$2,756
11 years$4,330$3,872$3,457$3,083$2,745$2,330
12 years$3,928$3,475$3,068$2,704$2,379$1,984
13 years$3,589$3,140$2,741$2,387$2,075$1,700
14 years$3,298$2,855$2,463$2,119$1,819$1,463
15 years$3,047$2,608$2,224$1,890$1,601$1,264
16 years$2,827$2,393$2,016$1,692$1,415$1,096
17 years$2,633$2,203$1,835$1,520$1,255$954
18 years$2,461$2,036$1,675$1,370$1,116$831
19 years$2,307$1,887$1,533$1,238$994$726
20 years$2,168$1,754$1,407$1,121$888$636
21 years$2,043$1,633$1,294$1,018$795$557
22 years$1,930$1,525$1,193$925$713$489
23 years$1,827$1,426$1,101$843$640$430
24 years$1,732$1,336$1,019$769$575$378
25 years$1,645$1,254$943$702$517$333
26 years$1,565$1,178$875$642$466$294
27 years$1,491$1,109$812$587$420$259
28 years$1,422$1,045$755$538$379$229
29 years$1,358$986$703$494$342$202
30 years$1,299$931$655$453$309$178
31 years$1,243$880$610$416$280$158
32 years$1,191$833$569$382$253$139
33 years$1,143$789$532$352$229$123
34 years$1,097$747$497$323$207$109
35 years$1,054$709$464$298$188$96
36 years$1,013$673$435$274$170$85
37 years$975$639$407$253$154$76
38 years$939$607$381$233$140$67
39 years$905$578$357$215$127$59
40 years$872$549$334$198$115$52
41 years$841$523$314$183$104$46
42 years$812$498$294$169$95$41
43 years$784$475$276$156$86$36
44 years$758$452$259$144$78$32
45 years$733$431$243$133$71$29
46 years$709$412$229$123$64$25
47 years$686$393$215$113$58$22
48 years$664$375$202$105$53$20
49 years$643$358$190$97$48$18
50 years$623$342$178$89$44$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $638,000, adding $5,041 every year, while hoping to spend $33,265 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: 43/31/26 Blend
39$638,000$638,000$638,000$638,000
40$708,276$674,462$664,573$733,177
41$745,126$672,117$651,442$749,098
42$784,620$668,542$636,757$762,780
43$826,993$663,642$620,430$776,956
44$872,502$657,315$602,369$791,691
45$921,428$649,455$582,480$807,058
46$974,083$639,948$560,663$823,140
47$1,030,807$628,673$536,812$840,032
48$1,091,974$615,502$510,820$857,840
49$1,157,995$600,301$482,572$876,685
50$1,229,321$582,926$451,948$896,701
51$1,306,448$563,226$418,825$918,042
52$1,389,922$541,041$383,072$940,878
53$1,480,342$516,200$344,553$965,402
54$1,578,367$488,524$303,126$991,830
55$1,684,723$457,824$258,643$1,020,405
56$1,800,205$423,898$210,948$1,051,395
57$1,925,692$386,534$159,880$1,085,106
58$2,062,147$345,509$105,271$1,121,875
59$2,210,631$300,584$46,943$1,162,082
60$2,372,312$251,510$0$1,206,148
61$2,548,475$198,021$0$1,258,790
62$2,740,534$139,838$0$1,330,462
63$2,950,044$76,666$0$1,408,767
64$3,178,718$8,192$0$1,494,417
65$3,428,442$0$0$1,588,196
66$3,701,291$0$0$1,713,459
67$3,999,549$0$0$1,853,518
68$4,325,733$0$0$2,006,769
69$4,682,612$0$0$2,174,525
70$5,073,236$0$0$2,358,228
71$5,500,962$0$0$2,559,468
72$5,969,490$0$0$2,779,997
73$6,482,891$0$0$3,021,744
74$7,045,652$0$0$3,286,831
75$7,662,712$0$0$3,577,599
76$8,339,511$0$0$3,896,623
77$9,082,043$0$0$4,246,742
78$9,896,909$0$0$4,631,083
79$10,791,378$0$0$5,053,088
80$11,773,459$0$0$5,516,551
81$12,851,977$0$0$6,025,651
82$14,036,648$0$0$6,584,991
83$15,338,179$0$0$7,199,642
84$16,768,365$0$0$7,875,192
85$18,340,199$0$0$8,617,796
86$20,067,996$0$0$9,434,234
87$21,967,527$0$0$10,331,977
88$24,056,167$0$0$11,319,257
89$26,353,059$0$0$12,405,142
90$28,879,294$0$0$13,599,624
91$31,658,108$0$0$14,913,712
92$34,715,105$0$0$16,359,535
93$38,078,494$0$0$17,950,458
94$41,779,355$0$0$19,701,205
95$45,851,935$0$0$21,628,003
96$50,333,967$0$0$23,748,727
97$55,267,029$0$0$26,083,078
98$60,696,931$0$0$28,652,760
99$66,674,152$0$0$31,481,690
100$73,254,313$0$0$34,596,221