Can I retire at age 40 with 639,000?

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 $639,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15%
1 years$52,768$52,298$51,839$51,392$50,955$49,906
2 years$26,123$25,636$25,165$24,708$24,264$23,212
3 years$17,242$16,754$16,283$15,830$15,394$14,372
4 years$12,803$12,316$11,850$11,405$10,979$9,994
5 years$10,140$9,656$9,196$8,760$8,346$7,402
6 years$8,365$7,885$7,432$7,005$6,604$5,701
7 years$7,098$6,621$6,176$5,760$5,371$4,509
8 years$6,148$5,676$5,238$4,832$4,456$3,636
9 years$5,410$4,942$4,511$4,115$3,752$2,973
10 years$4,819$4,356$3,933$3,548$3,197$2,458
11 years$4,336$3,878$3,463$3,087$2,750$2,050
12 years$3,934$3,481$3,073$2,708$2,383$1,721
13 years$3,594$3,145$2,745$2,391$2,078$1,453
14 years$3,303$2,859$2,467$2,122$1,821$1,232
15 years$3,051$2,612$2,227$1,893$1,604$1,049
16 years$2,831$2,396$2,019$1,695$1,417$896
17 years$2,637$2,207$1,837$1,523$1,257$767
18 years$2,464$2,039$1,677$1,372$1,117$658
19 years$2,310$1,890$1,536$1,240$996$566
20 years$2,172$1,756$1,409$1,123$890$487
21 years$2,047$1,636$1,296$1,019$796$420
22 years$1,933$1,527$1,195$927$714$363
23 years$1,829$1,428$1,103$844$641$313
24 years$1,735$1,338$1,020$770$576$271
25 years$1,647$1,256$945$703$518$235
26 years$1,567$1,180$876$643$467$203
27 years$1,493$1,111$814$588$421$176
28 years$1,424$1,047$756$539$380$153
29 years$1,360$987$704$494$343$132
30 years$1,301$932$656$454$310$115
31 years$1,245$882$611$417$280$100
32 years$1,193$834$570$383$253$86
33 years$1,144$790$533$352$229$75
34 years$1,099$749$498$324$208$65
35 years$1,055$710$465$298$188$57
36 years$1,015$674$435$275$170$49
37 years$977$640$407$253$154$43
38 years$940$608$381$233$140$37
39 years$906$578$357$215$127$32
40 years$874$550$335$198$115$28
41 years$843$524$314$183$104$24
42 years$814$499$295$169$95$21
43 years$786$475$276$156$86$18
44 years$759$453$260$144$78$16
45 years$734$432$244$133$71$14
46 years$710$412$229$123$64$12
47 years$687$393$215$113$58$11
48 years$665$376$202$105$53$9
49 years$644$359$190$97$48$8
50 years$624$343$179$90$44$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $639,000, adding $3,424 every year, while hoping to spend $52,898 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: 79/16/5 Blend
39$639,000$639,000$639,000$639,000
40$707,710$673,843$663,938$763,207
41$723,613$650,578$629,897$776,777
42$739,366$624,400$592,943$784,347
43$754,896$595,111$552,922$791,049
44$770,125$562,501$509,673$796,768
45$784,960$526,346$463,031$801,381
46$799,302$486,413$412,818$804,750
47$813,037$442,453$358,853$806,727
48$826,037$394,204$300,945$807,146
49$838,160$341,387$238,894$805,827
50$849,248$283,710$172,492$802,573
51$859,122$220,863$101,522$797,165
52$867,587$152,520$25,757$789,366
53$874,421$78,333$0$778,914
54$879,380$0$0$768,461
55$882,191$0$0$756,773
56$882,552$0$0$756,733
57$880,127$0$0$754,257
58$874,542$0$0$749,018
59$865,385$0$0$740,657
60$852,194$0$0$728,772
61$834,462$0$0$712,922
62$811,625$0$0$692,614
63$783,058$0$0$667,304
64$748,070$0$0$636,390
65$705,895$0$0$599,204
66$655,686$0$0$555,010
67$596,505$0$0$502,991
68$527,318$0$0$442,244
69$446,977$0$0$371,771
70$354,217$0$0$290,469
71$247,637$0$0$197,118
72$125,691$0$0$90,372
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0