Can I retire at age 40 with 650,000?

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 $650,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$53,676$53,198$52,732$52,276$51,832$50,931
2 years$26,572$26,078$25,598$25,133$24,682$23,777
3 years$17,539$17,042$16,564$16,103$15,659$14,779
4 years$13,023$12,528$12,054$11,601$11,168$10,319
5 years$10,314$9,822$9,354$8,911$8,490$7,675
6 years$8,509$8,020$7,560$7,126$6,718$5,937
7 years$7,220$6,735$6,282$5,859$5,463$4,717
8 years$6,254$5,773$5,328$4,915$4,532$3,821
9 years$5,503$5,027$4,589$4,186$3,817$3,139
10 years$4,902$4,431$4,001$3,609$3,252$2,608
11 years$4,411$3,945$3,522$3,141$2,797$2,186
12 years$4,002$3,540$3,126$2,755$2,424$1,845
13 years$3,656$3,200$2,793$2,432$2,114$1,566
14 years$3,360$2,908$2,509$2,159$1,853$1,335
15 years$3,104$2,657$2,266$1,925$1,631$1,143
16 years$2,880$2,438$2,054$1,724$1,442$981
17 years$2,682$2,245$1,869$1,549$1,278$845
18 years$2,507$2,074$1,706$1,396$1,137$729
19 years$2,350$1,923$1,562$1,261$1,013$631
20 years$2,209$1,786$1,433$1,142$905$546
21 years$2,082$1,664$1,319$1,037$810$474
22 years$1,966$1,553$1,215$943$726$412
23 years$1,861$1,453$1,122$858$652$358
24 years$1,764$1,361$1,038$783$586$312
25 years$1,676$1,277$961$715$527$271
26 years$1,594$1,201$891$654$475$237
27 years$1,519$1,130$828$598$428$206
28 years$1,449$1,065$769$548$386$180
29 years$1,384$1,004$716$503$349$157
30 years$1,323$949$667$461$315$137
31 years$1,267$897$622$424$285$120
32 years$1,214$848$580$390$258$105
33 years$1,164$803$542$358$233$92
34 years$1,117$762$506$330$211$80
35 years$1,074$722$473$303$191$70
36 years$1,032$686$443$279$173$61
37 years$993$651$414$257$157$54
38 years$957$619$388$237$142$47
39 years$922$588$364$219$129$41
40 years$889$560$341$202$117$36
41 years$857$533$319$186$106$31
42 years$828$508$300$172$96$27
43 years$799$484$281$159$87$24
44 years$772$461$264$146$79$21
45 years$747$440$248$135$72$18
46 years$722$419$233$125$65$16
47 years$699$400$219$115$59$14
48 years$676$382$206$107$54$12
49 years$655$365$193$99$49$11
50 years$635$348$182$91$45$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $650,000, adding $5,100 every year, while hoping to spend $21,921 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: 62/12/26 Blend
39$650,000$650,000$650,000$650,000
40$721,561$687,111$677,036$761,009
41$771,836$697,455$676,393$798,714
42$826,505$707,572$674,993$837,020
43$885,992$717,427$672,789$878,372
44$950,765$726,983$669,730$923,069
45$1,021,339$736,201$665,761$971,444
46$1,098,279$745,038$660,828$1,023,865
47$1,182,210$753,451$654,872$1,080,735
48$1,273,816$761,391$647,831$1,142,500
49$1,373,854$768,808$639,641$1,209,654
50$1,483,153$775,646$630,236$1,282,738
51$1,602,630$781,848$619,544$1,362,353
52$1,733,292$787,352$607,492$1,449,159
53$1,876,248$792,092$594,004$1,543,884
54$2,032,719$795,998$578,997$1,647,334
55$2,204,051$798,997$562,388$1,760,395
56$2,391,725$801,008$544,088$1,884,045
57$2,597,371$801,948$524,006$2,019,364
58$2,822,787$801,727$502,043$2,167,542
59$3,069,950$800,251$478,101$2,329,891
60$3,341,040$797,418$452,072$2,507,860
61$3,638,456$793,122$423,847$2,703,045
62$3,964,843$787,250$393,311$2,917,207
63$4,323,113$779,680$360,342$3,152,289
64$4,716,472$770,286$324,815$3,410,432
65$5,148,455$758,933$286,599$3,693,998
66$5,622,953$745,476$245,556$4,005,592
67$6,144,254$729,765$201,542$4,348,085
68$6,717,083$711,639$154,409$4,724,646
69$7,346,643$690,926$103,999$5,138,766
70$8,038,668$667,449$50,150$5,594,296
71$8,799,473$641,014$0$6,095,481
72$9,636,017$611,422$0$6,649,034
73$10,555,967$578,458$0$7,273,064
74$11,567,770$541,897$0$7,959,388
75$12,680,732$501,499$0$8,714,332
76$13,905,107$457,013$0$9,544,872
77$15,252,193$408,172$0$10,458,692
78$16,734,439$354,694$0$11,464,261
79$18,365,558$296,281$0$12,570,913
80$20,160,665$232,618$0$13,788,931
81$22,136,409$163,373$0$15,129,652
82$24,311,139$88,195$0$16,605,567
83$26,705,072$6,713$0$18,230,440
84$29,340,482$0$0$20,019,442
85$32,241,917$0$0$22,000,049
86$35,436,422$0$0$24,181,752
87$38,953,800$0$0$26,584,026
88$42,826,892$0$0$29,229,307
89$47,091,882$0$0$32,142,319
90$51,788,645$0$0$35,350,305
91$56,961,121$0$0$38,883,283
92$62,657,725$0$0$42,774,334
93$68,931,809$0$0$47,059,907
94$75,842,164$0$0$51,780,171
95$83,453,574$0$0$56,979,386
96$91,837,427$0$0$62,706,327
97$101,072,387$0$0$69,014,740
98$111,245,141$0$0$75,963,851
99$122,451,211$0$0$83,618,924
100$134,795,862$0$0$92,051,876