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%19%
1 years$52,685$52,216$51,758$51,311$50,875$49,031
2 years$26,082$25,596$25,125$24,669$24,226$22,389
3 years$17,215$16,727$16,258$15,806$15,370$13,597
4 years$12,783$12,296$11,832$11,387$10,962$9,266
5 years$10,124$9,641$9,182$8,746$8,333$6,720
6 years$8,352$7,872$7,420$6,995$6,594$5,064
7 years$7,087$6,611$6,166$5,751$5,363$3,915
8 years$6,138$5,667$5,229$4,824$4,449$3,083
9 years$5,401$4,934$4,504$4,109$3,746$2,461
10 years$4,812$4,349$3,927$3,542$3,192$1,984
11 years$4,330$3,872$3,457$3,083$2,745$1,613
12 years$3,928$3,475$3,068$2,704$2,379$1,319
13 years$3,589$3,140$2,741$2,387$2,075$1,084
14 years$3,298$2,855$2,463$2,119$1,819$894
15 years$3,047$2,608$2,224$1,890$1,601$740
16 years$2,827$2,393$2,016$1,692$1,415$614
17 years$2,633$2,203$1,835$1,520$1,255$511
18 years$2,461$2,036$1,675$1,370$1,116$425
19 years$2,307$1,887$1,533$1,238$994$355
20 years$2,168$1,754$1,407$1,121$888$296
21 years$2,043$1,633$1,294$1,018$795$248
22 years$1,930$1,525$1,193$925$713$207
23 years$1,827$1,426$1,101$843$640$174
24 years$1,732$1,336$1,019$769$575$145
25 years$1,645$1,254$943$702$517$122
26 years$1,565$1,178$875$642$466$102
27 years$1,491$1,109$812$587$420$86
28 years$1,422$1,045$755$538$379$72
29 years$1,358$986$703$494$342$60
30 years$1,299$931$655$453$309$51
31 years$1,243$880$610$416$280$43
32 years$1,191$833$569$382$253$36
33 years$1,143$789$532$352$229$30
34 years$1,097$747$497$323$207$25
35 years$1,054$709$464$298$188$21
36 years$1,013$673$435$274$170$18
37 years$975$639$407$253$154$15
38 years$939$607$381$233$140$13
39 years$905$578$357$215$127$11
40 years$872$549$334$198$115$9
41 years$841$523$314$183$104$7
42 years$812$498$294$169$95$6
43 years$784$475$276$156$86$5
44 years$758$452$259$144$78$4
45 years$733$431$243$133$71$4
46 years$709$412$229$123$64$3
47 years$686$393$215$113$58$3
48 years$664$375$202$105$53$2
49 years$643$358$190$97$48$2
50 years$623$342$178$89$44$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $638,000, adding $3,099 every year, while hoping to spend $21,347 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: 70/22/8 Blend
39$638,000$638,000$638,000$638,000
40$706,273$672,459$662,570$754,519
41$755,599$682,696$662,053$797,088
42$809,242$692,720$660,803$840,738
43$867,618$702,496$658,773$887,921
44$931,188$711,991$655,914$938,978
45$1,000,456$721,166$652,175$994,286
46$1,075,979$729,980$647,500$1,054,261
47$1,158,371$738,390$641,832$1,119,361
48$1,248,304$746,351$635,114$1,190,091
49$1,346,522$753,813$627,281$1,267,006
50$1,453,841$760,724$618,269$1,350,720
51$1,571,161$767,028$608,009$1,441,907
52$1,699,472$772,665$596,430$1,541,312
53$1,839,865$777,571$583,456$1,649,756
54$1,993,539$781,680$569,010$1,768,142
55$2,161,817$784,920$553,009$1,897,468
56$2,346,156$787,214$535,368$2,038,831
57$2,548,157$788,481$515,996$2,193,442
58$2,769,588$788,635$494,801$2,362,637
59$3,012,392$787,585$471,683$2,547,885
60$3,278,712$785,232$446,540$2,750,809
61$3,570,907$781,475$419,265$2,973,195
62$3,891,575$776,203$389,747$3,217,014
63$4,243,579$769,301$357,867$3,484,438
64$4,630,072$760,644$323,503$3,777,860
65$5,054,528$750,104$286,529$4,099,919
66$5,520,771$737,541$246,809$4,453,524
67$6,033,018$722,809$204,206$4,841,881
68$6,595,912$705,753$158,573$5,268,524
69$7,214,568$686,208$109,758$5,737,349
70$7,894,622$664,000$57,603$6,252,650
71$8,642,283$638,945$1,942$6,819,161
72$9,464,391$610,848$0$7,442,098
73$10,368,483$579,504$0$8,132,119
74$11,362,862$544,693$0$8,891,154
75$12,456,677$506,186$0$9,726,040
76$13,660,007$463,738$0$10,644,497
77$14,983,958$417,092$0$11,655,033
78$16,440,767$365,975$0$12,767,024
79$18,043,917$310,100$0$13,990,803
80$19,808,263$249,161$0$15,337,762
81$21,750,175$182,838$0$16,820,451
82$23,887,687$110,792$0$18,452,707
83$26,240,674$32,664$0$20,249,776
84$28,831,034$0$0$22,228,464
85$31,682,895$0$0$24,419,862
86$34,822,846$0$0$26,841,380
87$38,280,183$0$0$29,507,709
88$42,087,189$0$0$32,443,752
89$46,279,435$0$0$35,676,949
90$50,896,121$0$0$39,237,535
91$55,980,438$0$0$43,158,830
92$61,579,983$0$0$47,477,547
93$67,747,201$0$0$52,234,144
94$74,539,887$0$0$57,473,202
95$82,021,724$0$0$63,243,845
96$90,262,890$0$0$69,600,207
97$99,340,716$0$0$76,601,942
98$109,340,417$0$0$84,314,782
99$120,355,896$0$0$92,811,165
100$132,490,632$0$0$102,170,911