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%12.5%
1 years$53,016$52,544$52,083$51,633$51,194$50,659
2 years$26,245$25,757$25,283$24,824$24,378$23,840
3 years$17,323$16,832$16,360$15,905$15,466$14,941
4 years$12,863$12,373$11,906$11,458$11,031$10,522
5 years$10,187$9,701$9,239$8,801$8,385$7,895
6 years$8,404$7,922$7,467$7,038$6,635$6,164
7 years$7,131$6,653$6,205$5,787$5,396$4,945
8 years$6,177$5,702$5,262$4,854$4,477$4,044
9 years$5,435$4,965$4,532$4,135$3,770$3,357
10 years$4,842$4,376$3,951$3,564$3,212$2,818
11 years$4,357$3,896$3,479$3,102$2,763$2,387
12 years$3,953$3,497$3,087$2,721$2,394$2,036
13 years$3,611$3,160$2,758$2,402$2,088$1,748
14 years$3,319$2,873$2,478$2,132$1,830$1,507
15 years$3,066$2,624$2,238$1,902$1,611$1,305
16 years$2,844$2,408$2,029$1,703$1,424$1,134
17 years$2,649$2,217$1,846$1,530$1,263$988
18 years$2,476$2,049$1,685$1,379$1,123$864
19 years$2,321$1,899$1,543$1,246$1,001$756
20 years$2,182$1,765$1,416$1,128$894$663
21 years$2,056$1,644$1,302$1,024$800$583
22 years$1,942$1,534$1,200$931$717$513
23 years$1,838$1,435$1,108$848$644$452
24 years$1,743$1,344$1,025$773$578$398
25 years$1,655$1,262$949$706$521$352
26 years$1,575$1,186$880$646$469$311
27 years$1,500$1,116$818$591$423$275
28 years$1,431$1,052$760$542$381$243
29 years$1,367$992$707$497$344$215
30 years$1,307$937$659$456$311$190
31 years$1,251$886$614$419$281$169
32 years$1,199$838$573$385$255$150
33 years$1,150$794$535$354$230$133
34 years$1,104$752$500$326$209$118
35 years$1,060$713$467$300$189$104
36 years$1,020$677$437$276$171$93
37 years$981$643$409$254$155$82
38 years$945$611$383$234$141$73
39 years$910$581$359$216$128$65
40 years$878$553$337$199$116$57
41 years$847$526$316$184$105$51
42 years$817$501$296$170$95$45
43 years$789$478$278$157$86$40
44 years$763$455$261$145$78$36
45 years$737$434$245$134$71$32
46 years$713$414$230$123$65$28
47 years$690$395$216$114$59$25
48 years$668$377$203$105$53$22
49 years$647$360$191$97$48$20
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 $4,497 every year, while hoping to spend $37,960 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: 41/39/20 Blend
39$642,000$642,000$642,000$642,000
40$712,123$678,097$668,146$736,959
41$744,370$670,934$650,139$747,923
42$778,634$662,149$630,258$755,786
43$815,081$651,620$608,398$763,516
44$853,892$639,222$584,451$771,122
45$895,265$624,820$558,307$778,613
46$939,419$608,272$529,846$786,007
47$986,590$589,428$498,946$793,324
48$1,037,040$568,128$465,479$800,590
49$1,091,055$544,203$429,309$807,838
50$1,148,949$517,476$390,298$815,108
51$1,211,066$487,757$348,298$822,448
52$1,277,785$454,847$303,155$829,915
53$1,349,519$418,535$254,711$837,578
54$1,426,725$378,597$202,799$845,517
55$1,509,901$334,799$147,243$853,825
56$1,599,597$286,890$87,862$862,610
57$1,696,416$234,608$24,466$871,999
58$1,801,022$177,675$0$882,136
59$1,914,141$115,796$0$902,404
60$2,036,575$48,662$0$929,948
61$2,169,204$0$0$959,804
62$2,312,996$0$0$1,002,592
63$2,469,014$0$0$1,071,746
64$2,638,429$0$0$1,146,911
65$2,822,528$0$0$1,228,668
66$3,022,726$0$0$1,317,653
67$3,240,583$0$0$1,414,571
68$3,477,811$0$0$1,520,193
69$3,736,297$0$0$1,635,371
70$4,018,117$0$0$1,761,041
71$4,325,555$0$0$1,898,233
72$4,661,126$0$0$2,048,082
73$5,027,597$0$0$2,211,838
74$5,428,017$0$0$2,390,874
75$5,865,738$0$0$2,586,704
76$6,344,456$0$0$2,800,996
77$6,868,235$0$0$3,035,585
78$7,441,554$0$0$3,292,492
79$8,069,344$0$0$3,573,943
80$8,757,034$0$0$3,882,389
81$9,510,604$0$0$4,220,529
82$10,336,638$0$0$4,591,336
83$11,242,391$0$0$4,998,086
84$12,235,851$0$0$5,444,386
85$13,325,815$0$0$5,934,207
86$14,521,976$0$0$6,471,926
87$15,835,009$0$0$7,062,365
88$17,276,672$0$0$7,710,832
89$18,859,919$0$0$8,423,179
90$20,599,020$0$0$9,205,849
91$22,509,694$0$0$10,065,942
92$24,609,259$0$0$11,011,279
93$26,916,791$0$0$12,050,477
94$29,453,310$0$0$13,193,028
95$32,241,970$0$0$14,449,392
96$35,308,283$0$0$15,831,091
97$38,680,355$0$0$17,350,821
98$42,389,154$0$0$19,022,569
99$46,468,797$0$0$20,861,748
100$50,956,875$0$0$22,885,338