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%14.5%
1 years$52,851$52,380$51,921$51,472$51,034$50,086
2 years$26,164$25,676$25,204$24,746$24,302$23,350
3 years$17,269$16,780$16,309$15,855$15,418$14,492
4 years$12,823$12,335$11,869$11,423$10,996$10,104
5 years$10,156$9,671$9,211$8,774$8,359$7,502
6 years$8,378$7,897$7,443$7,016$6,614$5,794
7 years$7,109$6,632$6,186$5,769$5,379$4,596
8 years$6,158$5,685$5,246$4,839$4,463$3,716
9 years$5,418$4,950$4,518$4,122$3,758$3,048
10 years$4,827$4,363$3,939$3,553$3,202$2,528
11 years$4,343$3,884$3,468$3,092$2,754$2,114
12 years$3,941$3,486$3,078$2,712$2,387$1,781
13 years$3,600$3,150$2,750$2,395$2,081$1,509
14 years$3,309$2,864$2,471$2,126$1,824$1,284
15 years$3,056$2,616$2,231$1,896$1,606$1,097
16 years$2,835$2,400$2,022$1,697$1,420$940
17 years$2,641$2,210$1,840$1,525$1,259$808
18 years$2,468$2,042$1,680$1,374$1,119$696
19 years$2,314$1,893$1,538$1,242$998$600
20 years$2,175$1,759$1,411$1,125$891$519
21 years$2,050$1,638$1,298$1,021$797$449
22 years$1,936$1,529$1,197$928$715$389
23 years$1,832$1,430$1,105$845$642$338
24 years$1,737$1,340$1,022$771$577$293
25 years$1,650$1,258$946$704$519$255
26 years$1,570$1,182$878$644$467$221
27 years$1,495$1,112$815$589$421$193
28 years$1,426$1,048$758$540$380$168
29 years$1,362$989$705$495$343$146
30 years$1,303$934$657$454$310$127
31 years$1,247$883$612$417$280$111
32 years$1,195$835$571$384$254$97
33 years$1,146$791$533$353$230$84
34 years$1,100$750$498$324$208$73
35 years$1,057$711$466$299$188$64
36 years$1,016$675$436$275$171$56
37 years$978$641$408$253$155$49
38 years$942$609$382$234$140$43
39 years$908$579$358$215$127$37
40 years$875$551$335$199$115$32
41 years$844$525$315$183$105$28
42 years$815$500$295$169$95$25
43 years$787$476$277$156$86$22
44 years$760$454$260$144$78$19
45 years$735$433$244$133$71$16
46 years$711$413$229$123$64$14
47 years$688$394$215$114$59$13
48 years$666$376$202$105$53$11
49 years$645$359$190$97$48$10
50 years$625$343$179$90$44$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $640,000, adding $2,839 every year, while hoping to spend $31,244 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: 54/34/12 Blend
39$640,000$640,000$640,000$640,000
40$708,208$674,288$664,368$744,105
41$747,202$674,085$653,381$768,615
42$789,126$672,825$640,979$791,655
43$834,247$670,423$627,081$816,007
44$882,855$666,788$611,604$841,801
45$935,272$661,827$594,458$869,185
46$991,850$655,437$575,553$898,319
47$1,052,976$647,511$554,791$929,385
48$1,119,076$637,935$532,073$962,583
49$1,190,617$626,589$507,293$998,134
50$1,268,113$613,345$480,340$1,036,286
51$1,352,129$598,068$451,100$1,077,312
52$1,443,288$580,614$419,453$1,121,516
53$1,542,271$560,832$385,273$1,169,236
54$1,649,831$538,561$348,428$1,220,846
55$1,766,795$513,632$308,782$1,276,760
56$1,894,073$485,865$266,191$1,337,437
57$2,032,666$455,070$220,506$1,403,388
58$2,183,676$421,046$171,570$1,475,177
59$2,348,314$383,580$119,221$1,553,430
60$2,527,915$342,449$63,288$1,638,839
61$2,723,948$297,415$3,594$1,732,172
62$2,938,029$248,226$0$1,834,278
63$3,171,938$194,619$0$1,953,796
64$3,427,634$136,314$0$2,085,060
65$3,707,274$73,015$0$2,228,789
66$4,013,233$4,409$0$2,386,283
67$4,348,125$0$0$2,558,983
68$4,714,832$0$0$2,774,603
69$5,116,523$0$0$3,012,662
70$5,556,691$0$0$3,273,587
71$6,039,183$0$0$3,559,666
72$6,568,233$0$0$3,873,418
73$7,148,508$0$0$4,217,619
74$7,785,145$0$0$4,595,325
75$8,483,806$0$0$5,009,904
76$9,250,724$0$0$5,465,064
77$10,092,767$0$0$5,964,892
78$11,017,500$0$0$6,513,887
79$12,033,257$0$0$7,117,008
80$13,149,219$0$0$7,779,717
81$14,375,498$0$0$8,508,030
82$15,723,238$0$0$9,308,576
83$17,204,712$0$0$10,188,660
84$18,833,444$0$0$11,156,326
85$20,624,333$0$0$12,220,439
86$22,593,794$0$0$13,390,766
87$24,759,912$0$0$14,678,068
88$27,142,613$0$0$16,094,199
89$29,763,851$0$0$17,652,224
90$32,647,815$0$0$19,366,535
91$35,821,157$0$0$21,252,989
92$39,313,242$0$0$23,329,060
93$43,156,428$0$0$25,614,001
94$47,386,365$0$0$28,129,025
95$52,042,338$0$0$30,897,507
96$57,167,630$0$0$33,945,203
97$62,809,937$0$0$37,300,492
98$69,021,812$0$0$40,994,647
99$75,861,165$0$0$45,062,125
100$83,391,804$0$0$49,540,895