Can I retire at age 40 with 642,000?

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 $642,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$53,016$52,544$52,083$51,633$51,194$50,387
2 years$26,245$25,757$25,283$24,824$24,378$23,568
3 years$17,323$16,832$16,360$15,905$15,466$14,677
4 years$12,863$12,373$11,906$11,458$11,031$10,269
5 years$10,187$9,701$9,239$8,801$8,385$7,653
6 years$8,404$7,922$7,467$7,038$6,635$5,933
7 years$7,131$6,653$6,205$5,787$5,396$4,725
8 years$6,177$5,702$5,262$4,854$4,477$3,836
9 years$5,435$4,965$4,532$4,135$3,770$3,159
10 years$4,842$4,376$3,951$3,564$3,212$2,631
11 years$4,357$3,896$3,479$3,102$2,763$2,211
12 years$3,953$3,497$3,087$2,721$2,394$1,870
13 years$3,611$3,160$2,758$2,402$2,088$1,592
14 years$3,319$2,873$2,478$2,132$1,830$1,361
15 years$3,066$2,624$2,238$1,902$1,611$1,168
16 years$2,844$2,408$2,029$1,703$1,424$1,006
17 years$2,649$2,217$1,846$1,530$1,263$869
18 years$2,476$2,049$1,685$1,379$1,123$752
19 years$2,321$1,899$1,543$1,246$1,001$652
20 years$2,182$1,765$1,416$1,128$894$567
21 years$2,056$1,644$1,302$1,024$800$493
22 years$1,942$1,534$1,200$931$717$430
23 years$1,838$1,435$1,108$848$644$375
24 years$1,743$1,344$1,025$773$578$327
25 years$1,655$1,262$949$706$521$286
26 years$1,575$1,186$880$646$469$250
27 years$1,500$1,116$818$591$423$219
28 years$1,431$1,052$760$542$381$191
29 years$1,367$992$707$497$344$168
30 years$1,307$937$659$456$311$147
31 years$1,251$886$614$419$281$129
32 years$1,199$838$573$385$255$113
33 years$1,150$794$535$354$230$99
34 years$1,104$752$500$326$209$87
35 years$1,060$713$467$300$189$76
36 years$1,020$677$437$276$171$67
37 years$981$643$409$254$155$59
38 years$945$611$383$234$141$52
39 years$910$581$359$216$128$45
40 years$878$553$337$199$116$40
41 years$847$526$316$184$105$35
42 years$817$501$296$170$95$31
43 years$789$478$278$157$86$27
44 years$763$455$261$145$78$24
45 years$737$434$245$134$71$21
46 years$713$414$230$123$65$18
47 years$690$395$216$114$59$16
48 years$668$377$203$105$53$14
49 years$647$360$191$97$48$12
50 years$627$344$179$90$44$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $642,000, adding $4,801 every year, while hoping to spend $26,297 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: 45/34/21 Blend
39$642,000$642,000$642,000$642,000
40$712,436$678,410$668,459$739,993
41$757,125$683,673$662,873$765,111
42$805,490$688,311$656,218$789,367
43$857,880$692,268$648,431$815,131
44$914,676$695,481$639,445$842,557
45$976,298$697,885$629,191$871,814
46$1,043,207$699,408$617,596$903,091
47$1,115,912$699,976$604,583$936,595
48$1,194,971$699,511$590,073$972,559
49$1,280,998$697,928$573,981$1,011,240
50$1,374,672$695,138$556,221$1,052,921
51$1,476,735$691,046$536,701$1,097,919
52$1,588,006$685,552$515,325$1,146,583
53$1,709,387$678,549$491,993$1,199,301
54$1,841,871$669,924$466,600$1,256,501
55$1,986,548$659,557$439,038$1,318,660
56$2,144,623$647,321$409,193$1,386,302
57$2,317,417$633,083$376,943$1,460,011
58$2,506,389$616,699$342,166$1,540,432
59$2,713,143$598,020$304,731$1,628,278
60$2,939,445$576,885$264,501$1,724,339
61$3,187,241$553,125$221,335$1,829,489
62$3,458,674$526,562$175,084$1,944,694
63$3,756,102$497,007$125,593$2,071,024
64$4,082,125$464,260$72,700$2,209,661
65$4,439,603$428,110$16,237$2,361,912
66$4,831,688$388,334$0$2,529,222
67$5,261,852$344,694$0$2,723,051
68$5,733,919$296,942$0$2,939,827
69$6,252,101$244,814$0$3,177,901
70$6,821,037$188,032$0$3,439,475
71$7,445,838$126,300$0$3,726,977
72$8,132,133$59,309$0$4,043,089
73$8,886,126$0$0$4,390,768
74$9,714,648$0$0$4,778,244
75$10,625,227$0$0$5,228,563
76$11,626,155$0$0$5,723,648
77$12,726,568$0$0$6,268,027
78$13,936,531$0$0$6,866,691
79$15,267,134$0$0$7,525,137
80$16,730,594$0$0$8,249,423
81$18,340,373$0$0$9,046,223
82$20,111,302$0$0$9,922,891
83$22,059,722$0$0$10,887,528
84$24,203,639$0$0$11,949,062
85$26,562,891$0$0$13,117,329
86$29,159,337$0$0$14,403,167
87$32,017,061$0$0$15,818,519
88$35,162,603$0$0$17,376,543
89$38,625,204$0$0$19,091,738
90$42,437,084$0$0$20,980,081
91$46,633,748$0$0$23,059,176
92$51,254,317$0$0$25,348,421
93$56,341,897$0$0$27,869,191
94$61,943,988$0$0$30,645,039
95$68,112,933$0$0$33,701,920
96$74,906,405$0$0$37,068,431
97$82,387,959$0$0$40,776,088
98$90,627,626$0$0$44,859,616
99$99,702,577$0$0$49,357,281
100$109,697,846$0$0$54,311,250