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%12.4%
1 years$53,924$53,444$52,975$52,518$52,071$51,549
2 years$26,695$26,198$25,716$25,249$24,796$24,270
3 years$17,620$17,121$16,640$16,177$15,731$15,218
4 years$13,083$12,585$12,110$11,655$11,220$10,723
5 years$10,362$9,867$9,398$8,952$8,529$8,050
6 years$8,548$8,057$7,595$7,159$6,749$6,288
7 years$7,253$6,766$6,311$5,886$5,489$5,047
8 years$6,283$5,800$5,352$4,937$4,553$4,130
9 years$5,528$5,050$4,610$4,206$3,835$3,430
10 years$4,925$4,451$4,019$3,625$3,267$2,881
11 years$4,431$3,963$3,538$3,155$2,810$2,442
12 years$4,021$3,557$3,140$2,767$2,435$2,085
13 years$3,673$3,214$2,806$2,443$2,123$1,790
14 years$3,376$2,922$2,521$2,169$1,861$1,545
15 years$3,118$2,669$2,276$1,934$1,639$1,339
16 years$2,893$2,449$2,063$1,732$1,448$1,164
17 years$2,695$2,255$1,878$1,556$1,284$1,015
18 years$2,518$2,084$1,714$1,402$1,142$888
19 years$2,361$1,931$1,569$1,267$1,018$778
20 years$2,219$1,795$1,440$1,148$909$683
21 years$2,091$1,672$1,325$1,042$814$601
22 years$1,975$1,560$1,221$947$729$529
23 years$1,869$1,459$1,127$862$655$466
24 years$1,773$1,367$1,042$787$588$411
25 years$1,684$1,283$966$718$529$363
26 years$1,602$1,206$896$657$477$321
27 years$1,526$1,135$832$601$430$284
28 years$1,455$1,070$773$551$388$252
29 years$1,390$1,009$719$505$350$223
30 years$1,329$953$670$464$317$198
31 years$1,272$901$625$426$286$175
32 years$1,219$852$583$391$259$155
33 years$1,169$807$544$360$234$138
34 years$1,123$765$508$331$212$122
35 years$1,079$726$475$305$192$109
36 years$1,037$689$445$281$174$97
37 years$998$654$416$259$158$86
38 years$961$622$390$238$143$76
39 years$926$591$365$220$130$68
40 years$893$562$342$203$118$60
41 years$861$535$321$187$107$53
42 years$831$510$301$173$97$47
43 years$803$486$283$159$88$42
44 years$776$463$265$147$80$38
45 years$750$442$249$136$72$33
46 years$725$421$234$126$66$30
47 years$702$402$220$116$60$26
48 years$680$384$206$107$54$23
49 years$658$366$194$99$49$21
50 years$638$350$182$92$45$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $653,000, adding $4,740 every year, while hoping to spend $23,533 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: 59/32/9 Blend
39$653,000$653,000$653,000$653,000
40$724,495$689,886$679,765$765,476
41$773,355$698,652$677,498$802,336
42$826,409$707,058$674,367$839,424
43$884,062$715,063$670,317$879,282
44$946,756$722,620$665,292$922,181
45$1,014,979$729,683$659,233$968,413
46$1,089,268$736,198$652,078$1,018,306
47$1,170,213$742,112$643,763$1,072,220
48$1,258,465$747,365$634,219$1,130,550
49$1,354,738$751,896$623,375$1,193,735
50$1,459,821$755,638$611,158$1,262,257
51$1,574,579$758,521$597,488$1,336,649
52$1,699,967$760,470$582,285$1,417,498
53$1,837,035$761,404$565,463$1,505,454
54$1,986,940$761,240$546,933$1,601,230
55$2,150,955$759,888$526,602$1,705,618
56$2,330,481$757,252$504,373$1,819,486
57$2,527,064$753,230$480,142$1,943,795
58$2,742,402$747,716$453,805$2,079,605
59$2,978,369$740,596$425,249$2,228,085
60$3,237,026$731,749$394,358$2,390,524
61$3,520,643$721,046$361,010$2,568,344
62$3,831,724$708,352$325,079$2,763,115
63$4,173,022$693,523$286,431$2,976,567
64$4,547,571$676,407$244,928$3,210,609
65$4,958,716$656,843$200,425$3,467,347
66$5,410,136$634,660$152,771$3,749,103
67$5,905,889$609,677$101,808$4,058,440
68$6,450,442$581,703$47,371$4,398,184
69$7,048,718$550,537$0$4,771,450
70$7,706,137$515,964$0$5,182,705
71$8,428,675$477,758$0$5,639,632
72$9,222,912$435,680$0$6,141,876
73$10,096,098$389,478$0$6,694,066
74$11,056,221$338,883$0$7,301,305
75$12,112,082$283,615$0$7,969,221
76$13,273,377$223,375$0$8,704,018
77$14,550,789$157,847$0$9,512,536
78$15,956,087$86,699$0$10,402,317
79$17,502,241$9,581$0$11,381,673
80$19,203,540$0$0$12,459,771
81$21,075,728$0$0$13,672,731
82$23,136,151$0$0$15,011,424
83$25,403,925$0$0$16,484,901
84$27,900,110$0$0$18,106,856
85$30,647,914$0$0$19,892,375
86$33,672,905$0$0$21,858,085
87$37,003,262$0$0$24,022,302
88$40,670,030$0$0$26,405,212
89$44,707,420$0$0$29,029,057
90$49,153,129$0$0$31,918,345
91$54,048,695$0$0$35,100,083
92$59,439,890$0$0$38,604,030
93$65,377,151$0$0$42,462,976
94$71,916,057$0$0$46,713,058
95$79,117,849$0$0$51,394,091
96$87,050,014$0$0$56,549,954
97$95,786,918$0$0$62,228,995
98$105,410,507$0$0$68,484,493
99$116,011,081$0$0$75,375,158
100$127,688,148$0$0$82,965,686