Can I retire at age 40 with 640,000?

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 $640,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.4%
1 years$52,851$52,380$51,921$51,472$51,034$50,523
2 years$26,164$25,676$25,204$24,746$24,302$23,787
3 years$17,269$16,780$16,309$15,855$15,418$14,915
4 years$12,823$12,335$11,869$11,423$10,996$10,509
5 years$10,156$9,671$9,211$8,774$8,359$7,890
6 years$8,378$7,897$7,443$7,016$6,614$6,163
7 years$7,109$6,632$6,186$5,769$5,379$4,946
8 years$6,158$5,685$5,246$4,839$4,463$4,048
9 years$5,418$4,950$4,518$4,122$3,758$3,362
10 years$4,827$4,363$3,939$3,553$3,202$2,824
11 years$4,343$3,884$3,468$3,092$2,754$2,393
12 years$3,941$3,486$3,078$2,712$2,387$2,043
13 years$3,600$3,150$2,750$2,395$2,081$1,755
14 years$3,309$2,864$2,471$2,126$1,824$1,514
15 years$3,056$2,616$2,231$1,896$1,606$1,312
16 years$2,835$2,400$2,022$1,697$1,420$1,141
17 years$2,641$2,210$1,840$1,525$1,259$995
18 years$2,468$2,042$1,680$1,374$1,119$870
19 years$2,314$1,893$1,538$1,242$998$762
20 years$2,175$1,759$1,411$1,125$891$669
21 years$2,050$1,638$1,298$1,021$797$589
22 years$1,936$1,529$1,197$928$715$518
23 years$1,832$1,430$1,105$845$642$457
24 years$1,737$1,340$1,022$771$577$403
25 years$1,650$1,258$946$704$519$356
26 years$1,570$1,182$878$644$467$315
27 years$1,495$1,112$815$589$421$279
28 years$1,426$1,048$758$540$380$247
29 years$1,362$989$705$495$343$219
30 years$1,303$934$657$454$310$194
31 years$1,247$883$612$417$280$172
32 years$1,195$835$571$384$254$152
33 years$1,146$791$533$353$230$135
34 years$1,100$750$498$324$208$120
35 years$1,057$711$466$299$188$107
36 years$1,016$675$436$275$171$95
37 years$978$641$408$253$155$84
38 years$942$609$382$234$140$75
39 years$908$579$358$215$127$66
40 years$875$551$335$199$115$59
41 years$844$525$315$183$105$52
42 years$815$500$295$169$95$47
43 years$787$476$277$156$86$41
44 years$760$454$260$144$78$37
45 years$735$433$244$133$71$33
46 years$711$413$229$123$64$29
47 years$688$394$215$114$59$26
48 years$666$376$202$105$53$23
49 years$645$359$190$97$48$20
50 years$625$343$179$90$44$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $640,000, adding $4,882 every year, while hoping to spend $29,910 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: 64/17/19 Blend
39$640,000$640,000$640,000$640,000
40$710,316$676,396$666,476$752,063
41$750,944$677,715$656,979$782,035
42$794,714$678,097$646,161$810,929
43$841,914$677,463$633,947$841,790
44$892,862$675,732$620,257$874,811
45$947,907$672,815$605,008$910,207
46$1,007,431$668,621$588,114$948,213
47$1,071,856$663,051$569,483$989,093
48$1,141,646$656,000$549,020$1,033,135
49$1,217,308$647,358$526,627$1,080,659
50$1,299,402$637,008$502,198$1,132,019
51$1,388,546$624,826$475,626$1,187,606
52$1,485,415$610,679$446,797$1,247,851
53$1,590,754$594,430$415,592$1,313,232
54$1,705,384$575,930$381,887$1,384,277
55$1,830,206$555,023$345,553$1,461,568
56$1,966,212$531,544$306,454$1,545,750
57$2,114,494$505,319$264,449$1,637,533
58$2,276,255$476,161$219,390$1,737,703
59$2,452,817$443,877$171,124$1,847,130
60$2,645,636$408,259$119,488$1,966,770
61$2,856,316$369,089$64,316$2,097,684
62$3,086,621$326,135$5,431$2,241,039
63$3,338,494$279,153$0$2,398,128
64$3,614,075$227,887$0$2,582,015
65$3,915,720$172,062$0$2,784,566
66$4,246,022$111,392$0$3,006,456
67$4,607,838$45,572$0$3,249,647
68$5,004,315$0$0$3,516,299
69$5,438,916$0$0$3,813,607
70$5,915,457$0$0$4,148,998
71$6,438,141$0$0$4,516,911
72$7,011,598$0$0$4,920,609
73$7,640,925$0$0$5,363,688
74$8,331,738$0$0$5,850,108
75$9,090,226$0$0$6,384,232
76$9,923,201$0$0$6,970,865
77$10,838,172$0$0$7,615,300
78$11,843,408$0$0$8,323,371
79$12,948,020$0$0$9,101,501
80$14,162,045$0$0$9,956,769
81$15,496,540$0$0$10,896,971
82$16,963,688$0$0$11,930,700
83$18,576,910$0$0$13,067,419
84$20,350,992$0$0$14,317,557
85$22,302,227$0$0$15,692,602
86$24,448,564$0$0$17,205,214
87$26,809,780$0$0$18,869,340
88$29,407,664$0$0$20,700,346
89$32,266,227$0$0$22,715,163
90$35,411,921$0$0$24,932,449
91$38,873,894$0$0$27,372,759
92$42,684,261$0$0$30,058,742
93$46,878,411$0$0$33,015,355
94$51,495,335$0$0$36,270,097
95$56,577,999$0$0$39,853,269
96$62,173,743$0$0$43,798,259
97$68,334,734$0$0$48,141,856
98$75,118,453$0$0$52,924,600
99$82,588,239$0$0$58,191,160
100$90,813,886$0$0$63,990,759