Can I retire at age 40 with 653,000?

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 $653,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.5%
1 years$53,924$53,444$52,975$52,518$52,071$51,103
2 years$26,695$26,198$25,716$25,249$24,796$23,824
3 years$17,620$17,121$16,640$16,177$15,731$14,787
4 years$13,083$12,585$12,110$11,655$11,220$10,309
5 years$10,362$9,867$9,398$8,952$8,529$7,655
6 years$8,548$8,057$7,595$7,159$6,749$5,912
7 years$7,253$6,766$6,311$5,886$5,489$4,690
8 years$6,283$5,800$5,352$4,937$4,553$3,792
9 years$5,528$5,050$4,610$4,206$3,835$3,110
10 years$4,925$4,451$4,019$3,625$3,267$2,579
11 years$4,431$3,963$3,538$3,155$2,810$2,157
12 years$4,021$3,557$3,140$2,767$2,435$1,817
13 years$3,673$3,214$2,806$2,443$2,123$1,539
14 years$3,376$2,922$2,521$2,169$1,861$1,310
15 years$3,118$2,669$2,276$1,934$1,639$1,119
16 years$2,893$2,449$2,063$1,732$1,448$959
17 years$2,695$2,255$1,878$1,556$1,284$824
18 years$2,518$2,084$1,714$1,402$1,142$710
19 years$2,361$1,931$1,569$1,267$1,018$612
20 years$2,219$1,795$1,440$1,148$909$529
21 years$2,091$1,672$1,325$1,042$814$458
22 years$1,975$1,560$1,221$947$729$397
23 years$1,869$1,459$1,127$862$655$344
24 years$1,773$1,367$1,042$787$588$299
25 years$1,684$1,283$966$718$529$260
26 years$1,602$1,206$896$657$477$226
27 years$1,526$1,135$832$601$430$197
28 years$1,455$1,070$773$551$388$171
29 years$1,390$1,009$719$505$350$149
30 years$1,329$953$670$464$317$130
31 years$1,272$901$625$426$286$113
32 years$1,219$852$583$391$259$99
33 years$1,169$807$544$360$234$86
34 years$1,123$765$508$331$212$75
35 years$1,079$726$475$305$192$65
36 years$1,037$689$445$281$174$57
37 years$998$654$416$259$158$50
38 years$961$622$390$238$143$43
39 years$926$591$365$220$130$38
40 years$893$562$342$203$118$33
41 years$861$535$321$187$107$29
42 years$831$510$301$173$97$25
43 years$803$486$283$159$88$22
44 years$776$463$265$147$80$19
45 years$750$442$249$136$72$17
46 years$725$421$234$126$66$15
47 years$702$402$220$116$60$13
48 years$680$384$206$107$54$11
49 years$658$366$194$99$49$10
50 years$638$350$182$92$45$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $653,000, adding $3,822 every year, while hoping to spend $46,533 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: 45/34/21 Blend
39$653,000$653,000$653,000$653,000
40$723,548$688,939$678,818$751,578
41$747,840$673,187$652,048$755,915
42$773,049$655,102$622,821$755,732
43$799,221$634,523$591,006$754,578
44$826,403$611,277$556,466$752,386
45$854,646$585,179$519,058$749,083
46$884,004$556,037$478,631$744,597
47$914,536$523,646$435,028$738,849
48$946,303$487,789$388,086$731,756
49$979,372$448,238$337,634$723,234
50$1,013,817$404,750$283,493$713,193
51$1,049,712$357,069$225,476$701,539
52$1,087,142$304,925$163,389$688,176
53$1,126,197$248,032$97,028$673,002
54$1,166,972$186,089$26,182$655,911
55$1,209,572$118,776$0$636,793
56$1,254,110$45,758$0$626,609
57$1,300,708$0$0$621,146
58$1,349,497$0$0$626,930
59$1,400,619$0$0$650,949
60$1,454,231$0$0$676,162
61$1,510,500$0$0$702,648
62$1,569,608$0$0$730,498
63$1,631,754$0$0$759,808
64$1,697,153$0$0$790,684
65$1,766,041$0$0$823,241
66$1,838,671$0$0$857,604
67$1,915,324$0$0$893,909
68$1,996,302$0$0$932,305
69$2,081,937$0$0$972,955
70$2,172,590$0$0$1,016,036
71$2,268,655$0$0$1,061,742
72$2,370,565$0$0$1,110,286
73$2,478,791$0$0$1,161,899
74$2,593,849$0$0$1,216,835
75$2,716,302$0$0$1,275,372
76$2,846,768$0$0$1,337,813
77$2,985,925$0$0$1,404,493
78$3,134,512$0$0$1,475,776
79$3,293,342$0$0$1,552,063
80$3,463,304$0$0$1,633,793
81$3,645,375$0$0$1,721,446
82$3,840,624$0$0$1,815,552
83$4,050,227$0$0$1,916,691
84$4,275,472$0$0$2,025,497
85$4,517,774$0$0$2,142,671
86$4,778,686$0$0$2,268,980
87$5,059,914$0$0$2,405,267
88$5,363,332$0$0$2,552,458
89$5,690,999$0$0$2,711,570
90$6,045,177$0$0$2,883,724
91$6,428,353$0$0$3,070,147
92$6,843,259$0$0$3,272,192
93$7,292,901$0$0$3,491,346
94$7,780,584$0$0$3,729,244
95$8,309,939$0$0$3,987,683
96$8,884,964$0$0$4,268,642
97$9,510,056$0$0$4,574,296
98$10,190,050$0$0$4,907,041
99$10,930,267$0$0$5,269,509
100$11,736,562$0$0$5,664,600