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%17.4%
1 years$53,676$53,198$52,732$52,276$51,832$50,273
2 years$26,572$26,078$25,598$25,133$24,682$23,125
3 years$17,539$17,042$16,564$16,103$15,659$14,152
4 years$13,023$12,528$12,054$11,601$11,168$9,723
5 years$10,314$9,822$9,354$8,911$8,490$7,111
6 years$8,509$8,020$7,560$7,126$6,718$5,406
7 years$7,220$6,735$6,282$5,859$5,463$4,218
8 years$6,254$5,773$5,328$4,915$4,532$3,353
9 years$5,503$5,027$4,589$4,186$3,817$2,703
10 years$4,902$4,431$4,001$3,609$3,252$2,201
11 years$4,411$3,945$3,522$3,141$2,797$1,808
12 years$4,002$3,540$3,126$2,755$2,424$1,494
13 years$3,656$3,200$2,793$2,432$2,114$1,241
14 years$3,360$2,908$2,509$2,159$1,853$1,035
15 years$3,104$2,657$2,266$1,925$1,631$867
16 years$2,880$2,438$2,054$1,724$1,442$728
17 years$2,682$2,245$1,869$1,549$1,278$612
18 years$2,507$2,074$1,706$1,396$1,137$516
19 years$2,350$1,923$1,562$1,261$1,013$436
20 years$2,209$1,786$1,433$1,142$905$369
21 years$2,082$1,664$1,319$1,037$810$312
22 years$1,966$1,553$1,215$943$726$264
23 years$1,861$1,453$1,122$858$652$224
24 years$1,764$1,361$1,038$783$586$190
25 years$1,676$1,277$961$715$527$161
26 years$1,594$1,201$891$654$475$137
27 years$1,519$1,130$828$598$428$117
28 years$1,449$1,065$769$548$386$99
29 years$1,384$1,004$716$503$349$84
30 years$1,323$949$667$461$315$72
31 years$1,267$897$622$424$285$61
32 years$1,214$848$580$390$258$52
33 years$1,164$803$542$358$233$44
34 years$1,117$762$506$330$211$38
35 years$1,074$722$473$303$191$32
36 years$1,032$686$443$279$173$27
37 years$993$651$414$257$157$23
38 years$957$619$388$237$142$20
39 years$922$588$364$219$129$17
40 years$889$560$341$202$117$14
41 years$857$533$319$186$106$12
42 years$828$508$300$172$96$10
43 years$799$484$281$159$87$9
44 years$772$461$264$146$79$8
45 years$747$440$248$135$72$6
46 years$722$419$233$125$65$5
47 years$699$400$219$115$59$5
48 years$676$382$206$107$54$4
49 years$655$365$193$99$49$3
50 years$635$348$182$91$45$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $650,000, adding $6,391 every year, while hoping to spend $42,612 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: 75/5/20 Blend
39$650,000$650,000$650,000$650,000
40$722,892$688,442$678,367$773,233
41$751,288$676,837$655,754$795,868
42$781,153$663,235$630,955$814,833
43$812,590$647,494$603,851$834,515
44$845,715$629,461$574,321$854,973
45$880,651$608,977$542,233$876,274
46$917,533$585,873$507,454$898,495
47$956,510$559,969$469,842$921,719
48$997,742$531,076$429,250$946,039
49$1,041,405$498,992$385,523$971,558
50$1,087,691$463,506$338,501$998,390
51$1,136,811$424,393$288,016$1,026,662
52$1,188,993$381,416$233,893$1,056,516
53$1,244,490$334,324$175,947$1,088,108
54$1,303,574$282,853$113,988$1,121,613
55$1,366,548$226,722$47,816$1,157,222
56$1,433,741$165,636$0$1,195,150
57$1,505,513$99,283$0$1,240,500
58$1,582,260$27,333$0$1,299,873
59$1,664,416$0$0$1,363,396
60$1,752,456$0$0$1,434,224
61$1,846,901$0$0$1,511,836
62$1,948,324$0$0$1,595,202
63$2,057,352$0$0$1,684,839
64$2,174,677$0$0$1,781,317
65$2,301,053$0$0$1,885,262
66$2,437,314$0$0$1,997,360
67$2,584,372$0$0$2,118,365
68$2,743,232$0$0$2,249,107
69$2,914,995$0$0$2,390,498
70$3,100,875$0$0$2,543,537
71$3,302,204$0$0$2,709,326
72$3,520,448$0$0$2,889,076
73$3,757,217$0$0$3,084,118
74$4,014,283$0$0$3,295,915
75$4,293,596$0$0$3,526,077
76$4,597,299$0$0$3,776,377
77$4,927,752$0$0$4,048,762
78$5,287,548$0$0$4,345,377
79$5,679,545$0$0$4,668,581
80$6,106,884$0$0$5,020,972
81$6,573,024$0$0$5,405,407
82$7,081,773$0$0$5,825,031
83$7,637,321$0$0$6,283,307
84$8,244,281$0$0$6,784,048
85$8,907,731$0$0$7,331,449
86$9,633,263$0$0$7,930,131
87$10,427,032$0$0$8,585,181
88$11,295,819$0$0$9,302,201
89$12,247,086$0$0$10,087,359
90$13,289,054$0$0$10,947,448
91$14,430,774$0$0$11,889,947
92$15,682,217$0$0$12,923,096
93$17,054,361$0$0$14,055,969
94$18,559,300$0$0$15,298,557
95$20,210,352$0$0$16,661,870
96$22,022,189$0$0$18,158,030
97$24,010,970$0$0$19,800,393
98$26,194,496$0$0$21,603,670
99$28,592,375$0$0$23,584,066
100$31,226,208$0$0$25,759,432