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%12.4%
1 years$53,016$52,544$52,083$51,633$51,194$50,680
2 years$26,245$25,757$25,283$24,824$24,378$23,861
3 years$17,323$16,832$16,360$15,905$15,466$14,962
4 years$12,863$12,373$11,906$11,458$11,031$10,542
5 years$10,187$9,701$9,239$8,801$8,385$7,914
6 years$8,404$7,922$7,467$7,038$6,635$6,182
7 years$7,131$6,653$6,205$5,787$5,396$4,962
8 years$6,177$5,702$5,262$4,854$4,477$4,061
9 years$5,435$4,965$4,532$4,135$3,770$3,372
10 years$4,842$4,376$3,951$3,564$3,212$2,833
11 years$4,357$3,896$3,479$3,102$2,763$2,401
12 years$3,953$3,497$3,087$2,721$2,394$2,050
13 years$3,611$3,160$2,758$2,402$2,088$1,760
14 years$3,319$2,873$2,478$2,132$1,830$1,519
15 years$3,066$2,624$2,238$1,902$1,611$1,316
16 years$2,844$2,408$2,029$1,703$1,424$1,145
17 years$2,649$2,217$1,846$1,530$1,263$998
18 years$2,476$2,049$1,685$1,379$1,123$873
19 years$2,321$1,899$1,543$1,246$1,001$765
20 years$2,182$1,765$1,416$1,128$894$671
21 years$2,056$1,644$1,302$1,024$800$590
22 years$1,942$1,534$1,200$931$717$520
23 years$1,838$1,435$1,108$848$644$458
24 years$1,743$1,344$1,025$773$578$405
25 years$1,655$1,262$949$706$521$357
26 years$1,575$1,186$880$646$469$316
27 years$1,500$1,116$818$591$423$280
28 years$1,431$1,052$760$542$381$248
29 years$1,367$992$707$497$344$219
30 years$1,307$937$659$456$311$194
31 years$1,251$886$614$419$281$172
32 years$1,199$838$573$385$255$153
33 years$1,150$794$535$354$230$136
34 years$1,104$752$500$326$209$120
35 years$1,060$713$467$300$189$107
36 years$1,020$677$437$276$171$95
37 years$981$643$409$254$155$84
38 years$945$611$383$234$141$75
39 years$910$581$359$216$128$67
40 years$878$553$337$199$116$59
41 years$847$526$316$184$105$53
42 years$817$501$296$170$95$47
43 years$789$478$278$157$86$42
44 years$763$455$261$145$78$37
45 years$737$434$245$134$71$33
46 years$713$414$230$123$65$29
47 years$690$395$216$114$59$26
48 years$668$377$203$105$53$23
49 years$647$360$191$97$48$21
50 years$627$344$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 $642,000, adding $2,344 every year, while hoping to spend $26,504 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: 54/36/10 Blend
39$642,000$642,000$642,000$642,000
40$709,902$675,876$665,925$746,326
41$754,112$680,794$660,033$776,211
42$801,943$685,064$653,056$805,634
43$853,736$688,628$644,929$837,031
44$909,868$691,421$635,584$870,594
45$970,749$693,376$624,951$906,537
46$1,036,836$694,421$612,957$945,095
47$1,108,625$694,480$599,523$986,529
48$1,186,667$693,472$584,570$1,031,125
49$1,271,566$691,310$568,012$1,079,203
50$1,363,986$687,905$549,760$1,131,115
51$1,464,659$683,158$529,723$1,187,249
52$1,574,388$676,968$507,804$1,248,036
53$1,694,061$669,224$483,900$1,313,951
54$1,824,652$659,812$457,907$1,385,521
55$1,967,233$648,610$429,714$1,463,325
56$2,122,987$635,488$399,205$1,548,006
57$2,293,213$620,308$366,260$1,640,274
58$2,479,342$602,925$330,751$1,740,913
59$2,682,952$583,186$292,549$1,850,789
60$2,905,778$560,926$251,514$1,970,860
61$3,149,731$535,975$207,503$2,102,182
62$3,416,915$508,150$160,366$2,245,924
63$3,709,649$477,257$109,946$2,403,376
64$4,030,483$443,093$56,080$2,575,963
65$4,382,230$405,442$0$2,765,259
66$4,767,985$364,076$0$2,973,152
67$5,191,158$318,755$0$3,207,806
68$5,655,506$269,223$0$3,465,371
69$6,165,165$215,212$0$3,748,205
70$6,724,691$156,438$0$4,058,915
71$7,339,107$92,600$0$4,400,374
72$8,013,940$23,381$0$4,775,753
73$8,755,282$0$0$5,188,550
74$9,569,846$0$0$5,663,047
75$10,465,022$0$0$6,194,748
76$11,448,957$0$0$6,779,236
77$12,530,623$0$0$7,421,849
78$13,719,906$0$0$8,128,468
79$15,027,698$0$0$8,905,576
80$16,465,997$0$0$9,760,310
81$18,048,026$0$0$10,700,538
82$19,788,349$0$0$11,734,926
83$21,703,018$0$0$12,873,025
84$23,809,716$0$0$14,125,355
85$26,127,925$0$0$15,503,510
86$28,679,115$0$0$17,020,264
87$31,486,940$0$0$18,689,692
88$34,577,463$0$0$20,527,303
89$37,979,404$0$0$22,550,185
90$41,724,406$0$0$24,777,167
91$45,847,339$0$0$27,228,997
92$50,386,622$0$0$29,928,538
93$55,384,592$0$0$32,900,981
94$60,887,899$0$0$36,174,084
95$66,947,947$0$0$39,778,436
96$73,621,378$0$0$43,747,742
97$80,970,608$0$0$48,119,142
98$89,064,416$0$0$52,933,562
99$97,978,588$0$0$58,236,100
100$107,796,638$0$0$64,076,452