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%15.5%
1 years$53,924$53,444$52,975$52,518$52,071$50,895
2 years$26,695$26,198$25,716$25,249$24,796$23,617
3 years$17,620$17,121$16,640$16,177$15,731$14,587
4 years$13,083$12,585$12,110$11,655$11,220$10,119
5 years$10,362$9,867$9,398$8,952$8,529$7,474
6 years$8,548$8,057$7,595$7,159$6,749$5,741
7 years$7,253$6,766$6,311$5,886$5,489$4,528
8 years$6,283$5,800$5,352$4,937$4,553$3,640
9 years$5,528$5,050$4,610$4,206$3,835$2,968
10 years$4,925$4,451$4,019$3,625$3,267$2,446
11 years$4,431$3,963$3,538$3,155$2,810$2,033
12 years$4,021$3,557$3,140$2,767$2,435$1,702
13 years$3,673$3,214$2,806$2,443$2,123$1,432
14 years$3,376$2,922$2,521$2,169$1,861$1,210
15 years$3,118$2,669$2,276$1,934$1,639$1,027
16 years$2,893$2,449$2,063$1,732$1,448$874
17 years$2,695$2,255$1,878$1,556$1,284$745
18 years$2,518$2,084$1,714$1,402$1,142$637
19 years$2,361$1,931$1,569$1,267$1,018$546
20 years$2,219$1,795$1,440$1,148$909$468
21 years$2,091$1,672$1,325$1,042$814$402
22 years$1,975$1,560$1,221$947$729$346
23 years$1,869$1,459$1,127$862$655$298
24 years$1,773$1,367$1,042$787$588$256
25 years$1,684$1,283$966$718$529$221
26 years$1,602$1,206$896$657$477$191
27 years$1,526$1,135$832$601$430$165
28 years$1,455$1,070$773$551$388$142
29 years$1,390$1,009$719$505$350$123
30 years$1,329$953$670$464$317$106
31 years$1,272$901$625$426$286$92
32 years$1,219$852$583$391$259$79
33 years$1,169$807$544$360$234$68
34 years$1,123$765$508$331$212$59
35 years$1,079$726$475$305$192$51
36 years$1,037$689$445$281$174$44
37 years$998$654$416$259$158$38
38 years$961$622$390$238$143$33
39 years$926$591$365$220$130$29
40 years$893$562$342$203$118$25
41 years$861$535$321$187$107$21
42 years$831$510$301$173$97$19
43 years$803$486$283$159$88$16
44 years$776$463$265$147$80$14
45 years$750$442$249$136$72$12
46 years$725$421$234$126$66$10
47 years$702$402$220$116$60$9
48 years$680$384$206$107$54$8
49 years$658$366$194$99$49$7
50 years$638$350$182$92$45$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $653,000, adding $4,701 every year, while hoping to spend $44,058 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: 58/29/13 Blend
39$653,000$653,000$653,000$653,000
40$724,455$689,846$679,725$763,848
41$751,472$676,771$655,618$777,921
42$779,768$661,579$629,227$787,954
43$809,427$644,119$600,429$797,849
44$840,541$624,233$569,095$807,597
45$873,207$601,751$535,091$817,195
46$907,534$576,496$498,276$826,636
47$943,637$548,280$458,503$835,918
48$981,645$516,902$415,620$845,042
49$1,021,694$482,152$369,465$854,010
50$1,063,936$443,807$319,871$862,829
51$1,108,535$401,630$266,664$871,507
52$1,155,669$355,374$209,661$880,060
53$1,205,534$304,774$148,671$888,505
54$1,258,343$249,552$83,496$896,870
55$1,314,328$189,415$13,927$905,184
56$1,373,744$124,051$0$913,487
57$1,436,870$53,133$0$930,193
58$1,504,009$0$0$949,599
59$1,575,494$0$0$977,431
60$1,651,690$0$0$1,025,202
61$1,732,996$0$0$1,076,209
62$1,819,850$0$0$1,130,731
63$1,912,730$0$0$1,189,075
64$2,012,163$0$0$1,251,574
65$2,118,725$0$0$1,318,597
66$2,233,047$0$0$1,390,546
67$2,355,825$0$0$1,467,863
68$2,487,818$0$0$1,551,034
69$2,629,863$0$0$1,640,593
70$2,782,877$0$0$1,737,124
71$2,947,869$0$0$1,841,270
72$3,125,947$0$0$1,953,739
73$3,318,326$0$0$2,075,307
74$3,526,344$0$0$2,206,826
75$3,751,471$0$0$2,349,235
76$3,995,322$0$0$2,503,566
77$4,259,673$0$0$2,670,951
78$4,546,479$0$0$2,852,638
79$4,857,887$0$0$3,049,999
80$5,196,260$0$0$3,264,542
81$5,564,197$0$0$3,497,927
82$5,964,558$0$0$3,751,980
83$6,400,490$0$0$4,028,709
84$6,875,455$0$0$4,330,328
85$7,393,263$0$0$4,659,268
86$7,958,107$0$0$5,018,208
87$8,574,603$0$0$5,410,096
88$9,247,832$0$0$5,838,178
89$9,983,387$0$0$6,306,027
90$10,787,425$0$0$6,817,575
91$11,666,726$0$0$7,377,153
92$12,628,754$0$0$7,989,530
93$13,681,727$0$0$8,659,957
94$14,834,695$0$0$9,394,216
95$16,097,626$0$0$10,198,673
96$17,481,494$0$0$11,080,342
97$18,998,387$0$0$12,046,946
98$20,661,616$0$0$13,106,990
99$22,485,845$0$0$14,269,843
100$24,487,223$0$0$15,545,824