Can I retire at age 40 with 649,000?

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 $649,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.5%
1 years$53,594$53,116$52,651$52,196$51,752$51,000
2 years$26,532$26,037$25,559$25,094$24,644$23,888
3 years$17,512$17,016$16,538$16,078$15,635$14,898
4 years$13,003$12,508$12,035$11,583$11,151$10,439
5 years$10,299$9,807$9,340$8,897$8,477$7,792
6 years$8,496$8,008$7,548$7,115$6,707$6,051
7 years$7,209$6,725$6,273$5,850$5,455$4,827
8 years$6,244$5,765$5,320$4,907$4,525$3,925
9 years$5,494$5,019$4,582$4,180$3,811$3,239
10 years$4,895$4,424$3,994$3,603$3,247$2,702
11 years$4,404$3,939$3,517$3,136$2,793$2,275
12 years$3,996$3,535$3,121$2,750$2,420$1,928
13 years$3,651$3,195$2,788$2,428$2,110$1,644
14 years$3,355$2,904$2,505$2,156$1,850$1,409
15 years$3,099$2,653$2,262$1,922$1,629$1,212
16 years$2,875$2,434$2,051$1,721$1,440$1,046
17 years$2,678$2,241$1,866$1,547$1,276$905
18 years$2,503$2,071$1,704$1,394$1,135$785
19 years$2,346$1,920$1,560$1,259$1,012$682
20 years$2,206$1,784$1,431$1,141$904$594
21 years$2,079$1,661$1,317$1,035$809$518
22 years$1,963$1,551$1,213$941$725$453
23 years$1,858$1,451$1,120$857$651$396
24 years$1,762$1,359$1,036$782$585$346
25 years$1,673$1,275$960$714$526$303
26 years$1,592$1,199$890$653$474$266
27 years$1,516$1,128$826$598$427$233
28 years$1,446$1,063$768$547$386$205
29 years$1,382$1,003$715$502$348$180
30 years$1,321$947$666$461$315$158
31 years$1,265$895$621$423$284$139
32 years$1,212$847$579$389$257$122
33 years$1,162$802$541$358$233$107
34 years$1,116$760$505$329$211$94
35 years$1,072$721$472$303$191$83
36 years$1,031$685$442$279$173$73
37 years$992$650$414$257$157$64
38 years$955$618$387$237$142$56
39 years$920$588$363$218$129$50
40 years$887$559$340$201$117$44
41 years$856$532$319$186$106$39
42 years$826$507$299$172$96$34
43 years$798$483$281$158$87$30
44 years$771$460$264$146$79$26
45 years$745$439$247$135$72$23
46 years$721$419$232$125$65$20
47 years$698$400$218$115$59$18
48 years$675$381$205$106$54$16
49 years$654$364$193$98$49$14
50 years$634$348$181$91$44$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $649,000, adding $3,593 every year, while hoping to spend $45,259 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: 53/30/17 Blend
39$649,000$649,000$649,000$649,000
40$718,904$684,507$674,448$753,519
41$744,077$669,893$648,886$762,992
42$770,301$653,045$620,952$768,212
43$797,635$633,808$590,517$772,892
44$826,143$612,014$557,449$776,994
45$855,894$587,487$521,608$780,478
46$886,962$560,041$482,849$783,305
47$919,428$529,479$441,020$785,432
48$953,379$495,592$395,963$786,817
49$988,907$458,160$347,512$787,415
50$1,026,116$416,950$295,494$787,184
51$1,065,115$371,715$239,727$786,078
52$1,106,023$322,196$180,024$784,051
53$1,148,970$268,116$116,188$781,059
54$1,194,096$209,185$48,012$777,056
55$1,241,556$145,097$0$771,997
56$1,291,514$75,527$0$770,327
57$1,344,154$132$0$777,100
58$1,399,670$0$0$783,600
59$1,458,280$0$0$816,719
60$1,520,217$0$0$851,791
61$1,585,736$0$0$888,921
62$1,655,119$0$0$928,271
63$1,728,669$0$0$970,019
64$1,806,719$0$0$1,014,357
65$1,889,636$0$0$1,061,497
66$1,977,817$0$0$1,111,672
67$2,071,698$0$0$1,165,134
68$2,171,758$0$0$1,222,162
69$2,278,520$0$0$1,283,060
70$2,392,556$0$0$1,348,160
71$2,514,495$0$0$1,417,829
72$2,645,026$0$0$1,492,468
73$2,784,904$0$0$1,572,514
74$2,934,957$0$0$1,658,452
75$3,096,095$0$0$1,750,810
76$3,269,314$0$0$1,850,169
77$3,455,710$0$0$1,957,168
78$3,656,485$0$0$2,072,506
79$3,872,961$0$0$2,196,953
80$4,106,588$0$0$2,331,355
81$4,358,961$0$0$2,476,641
82$4,631,831$0$0$2,633,832
83$4,927,123$0$0$2,804,050
84$5,246,956$0$0$2,988,530
85$5,593,654$0$0$3,188,629
86$5,969,779$0$0$3,405,839
87$6,378,144$0$0$3,641,801
88$6,821,845$0$0$3,898,321
89$7,304,287$0$0$4,177,386
90$7,829,216$0$0$4,481,180
91$8,400,755$0$0$4,812,109
92$9,023,438$0$0$5,172,819
93$9,702,259$0$0$5,566,223
94$10,442,710$0$0$5,995,525
95$11,250,837$0$0$6,464,255
96$12,133,297$0$0$6,976,297
97$13,097,417$0$0$7,535,927
98$14,151,262$0$0$8,147,853
99$15,303,713$0$0$8,817,258
100$16,564,549$0$0$9,549,849