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%14.9%
1 years$52,851$52,380$51,921$51,472$51,034$50,004
2 years$26,164$25,676$25,204$24,746$24,302$23,269
3 years$17,269$16,780$16,309$15,855$15,418$14,414
4 years$12,823$12,335$11,869$11,423$10,996$10,029
5 years$10,156$9,671$9,211$8,774$8,359$7,431
6 years$8,378$7,897$7,443$7,016$6,614$5,727
7 years$7,109$6,632$6,186$5,769$5,379$4,532
8 years$6,158$5,685$5,246$4,839$4,463$3,656
9 years$5,418$4,950$4,518$4,122$3,758$2,992
10 years$4,827$4,363$3,939$3,553$3,202$2,475
11 years$4,343$3,884$3,468$3,092$2,754$2,065
12 years$3,941$3,486$3,078$2,712$2,387$1,735
13 years$3,600$3,150$2,750$2,395$2,081$1,466
14 years$3,309$2,864$2,471$2,126$1,824$1,244
15 years$3,056$2,616$2,231$1,896$1,606$1,060
16 years$2,835$2,400$2,022$1,697$1,420$905
17 years$2,641$2,210$1,840$1,525$1,259$776
18 years$2,468$2,042$1,680$1,374$1,119$666
19 years$2,314$1,893$1,538$1,242$998$573
20 years$2,175$1,759$1,411$1,125$891$494
21 years$2,050$1,638$1,298$1,021$797$426
22 years$1,936$1,529$1,197$928$715$368
23 years$1,832$1,430$1,105$845$642$318
24 years$1,737$1,340$1,022$771$577$276
25 years$1,650$1,258$946$704$519$239
26 years$1,570$1,182$878$644$467$207
27 years$1,495$1,112$815$589$421$179
28 years$1,426$1,048$758$540$380$156
29 years$1,362$989$705$495$343$135
30 years$1,303$934$657$454$310$117
31 years$1,247$883$612$417$280$102
32 years$1,195$835$571$384$254$89
33 years$1,146$791$533$353$230$77
34 years$1,100$750$498$324$208$67
35 years$1,057$711$466$299$188$58
36 years$1,016$675$436$275$171$51
37 years$978$641$408$253$155$44
38 years$942$609$382$234$140$38
39 years$908$579$358$215$127$33
40 years$875$551$335$199$115$29
41 years$844$525$315$183$105$25
42 years$815$500$295$169$95$22
43 years$787$476$277$156$86$19
44 years$760$454$260$144$78$17
45 years$735$433$244$133$71$14
46 years$711$413$229$123$64$13
47 years$688$394$215$114$59$11
48 years$666$376$202$105$53$9
49 years$645$359$190$97$48$8
50 years$625$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 $640,000, adding $4,936 every year, while hoping to spend $31,148 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: 40/30/30 Blend
39$640,000$640,000$640,000$640,000
40$710,371$676,451$666,531$732,335
41$749,688$676,456$655,719$748,821
42$791,971$675,418$643,500$763,413
43$837,490$673,251$629,796$778,617
44$886,541$669,868$614,521$794,511
45$939,450$665,173$597,589$811,181
46$996,574$659,066$578,908$828,725
47$1,058,305$651,440$558,382$847,252
48$1,125,075$642,184$535,911$866,887
49$1,197,359$631,177$511,390$887,768
50$1,275,678$618,293$484,710$910,052
51$1,360,605$603,398$455,756$933,913
52$1,452,771$586,349$424,408$959,549
53$1,552,870$566,996$390,542$987,178
54$1,661,664$545,180$354,026$1,017,047
55$1,779,993$520,733$314,725$1,049,430
56$1,908,780$493,476$272,496$1,084,634
57$2,049,040$463,222$227,190$1,123,001
58$2,201,893$429,770$178,651$1,164,915
59$2,368,568$392,911$126,718$1,210,799
60$2,550,419$352,421$71,221$1,261,130
61$2,748,937$308,065$11,982$1,316,434
62$2,965,763$259,595$0$1,377,301
63$3,202,703$206,747$0$1,460,784
64$3,461,746$149,244$0$1,556,368
65$3,745,080$86,793$0$1,661,088
66$4,055,117$19,085$0$1,775,907
67$4,394,510$0$0$1,901,892
68$4,766,184$0$0$2,058,118
69$5,173,357$0$0$2,236,251
70$5,619,573$0$0$2,431,552
71$6,108,738$0$0$2,645,741
72$6,645,150$0$0$2,880,711
73$7,233,545$0$0$3,138,549
74$7,879,141$0$0$3,421,553
75$8,587,682$0$0$3,732,253
76$9,365,498$0$0$4,073,438
77$10,219,560$0$0$4,448,181
78$11,157,548$0$0$4,859,863
79$12,187,922$0$0$5,312,212
80$13,320,002$0$0$5,809,336
81$14,564,054$0$0$6,355,758
82$15,931,390$0$0$6,956,461
83$17,434,472$0$0$7,616,937
84$19,087,027$0$0$8,343,236
85$20,904,181$0$0$9,142,022
86$22,902,599$0$0$10,020,640
87$25,100,641$0$0$10,987,180
88$27,518,535$0$0$12,050,556
89$30,178,569$0$0$13,220,591
90$33,105,301$0$0$14,508,108
91$36,325,788$0$0$15,925,030
92$39,869,843$0$0$17,484,497
93$43,770,314$0$0$19,200,986
94$48,063,397$0$0$21,090,448
95$52,788,972$0$0$23,170,461
96$57,990,983$0$0$25,460,392
97$63,717,852$0$0$27,981,581
98$70,022,933$0$0$30,757,546
99$76,965,017$0$0$33,814,197
100$84,608,885$0$0$37,180,086