Can I retire at age 40 with 655,000?

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 $655,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$54,089$53,607$53,137$52,679$52,231$50,478
2 years$26,777$26,278$25,795$25,326$24,872$23,123
3 years$17,674$17,173$16,691$16,227$15,780$14,090
4 years$13,123$12,624$12,147$11,690$11,254$9,637
5 years$10,394$9,897$9,426$8,979$8,555$7,014
6 years$8,575$8,082$7,618$7,181$6,769$5,306
7 years$7,276$6,787$6,331$5,904$5,505$4,119
8 years$6,302$5,818$5,369$4,953$4,567$3,257
9 years$5,545$5,066$4,624$4,218$3,846$2,611
10 years$4,940$4,465$4,031$3,636$3,277$2,115
11 years$4,445$3,975$3,549$3,165$2,819$1,726
12 years$4,033$3,568$3,150$2,776$2,442$1,418
13 years$3,684$3,224$2,814$2,451$2,130$1,171
14 years$3,386$2,931$2,529$2,175$1,867$971
15 years$3,128$2,677$2,283$1,940$1,644$808
16 years$2,902$2,456$2,070$1,737$1,453$674
17 years$2,703$2,262$1,883$1,561$1,288$563
18 years$2,526$2,090$1,719$1,407$1,145$471
19 years$2,368$1,937$1,574$1,271$1,021$395
20 years$2,226$1,800$1,445$1,151$912$332
21 years$2,098$1,677$1,329$1,045$816$279
22 years$1,981$1,565$1,225$950$731$235
23 years$1,875$1,464$1,131$865$657$198
24 years$1,778$1,372$1,046$789$590$167
25 years$1,689$1,287$969$721$531$140
26 years$1,606$1,210$898$659$478$118
27 years$1,530$1,139$834$603$431$100
28 years$1,460$1,073$775$553$389$84
29 years$1,394$1,012$722$507$351$71
30 years$1,333$956$672$465$318$60
31 years$1,276$904$627$427$287$51
32 years$1,223$855$585$392$260$43
33 years$1,173$810$546$361$235$36
34 years$1,126$767$510$332$213$31
35 years$1,082$728$477$306$193$26
36 years$1,040$691$446$282$175$22
37 years$1,001$656$418$259$158$18
38 years$964$624$391$239$143$16
39 years$929$593$366$220$130$13
40 years$895$564$343$203$118$11
41 years$864$537$322$188$107$9
42 years$834$511$302$173$97$8
43 years$805$487$283$160$88$7
44 years$778$464$266$148$80$6
45 years$752$443$250$136$73$5
46 years$728$423$235$126$66$4
47 years$704$403$220$116$60$3
48 years$682$385$207$107$54$3
49 years$660$368$195$99$49$2
50 years$640$351$183$92$45$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $655,000, adding $5,437 every year, while hoping to spend $45,716 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: 33/43/24 Blend
39$655,000$655,000$655,000$655,000
40$727,418$692,703$682,551$745,938
41$752,973$678,004$656,775$745,613
42$779,603$661,053$628,603$740,760
43$807,368$641,690$597,907$734,608
44$836,336$619,749$564,553$727,074
45$866,576$595,050$528,399$718,069
46$898,166$567,407$489,300$707,499
47$931,189$536,620$447,102$695,266
48$965,735$502,479$401,644$681,270
49$1,001,901$464,762$352,760$665,403
50$1,039,792$423,232$300,275$647,555
51$1,079,522$377,642$244,006$627,609
52$1,121,216$327,729$183,762$605,445
53$1,165,007$273,215$119,345$580,938
54$1,211,042$213,807$50,548$553,957
55$1,259,480$149,194$0$524,366
56$1,310,492$79,051$0$497,881
57$1,364,268$3,030$0$482,695
58$1,421,013$0$0$465,758
59$1,480,950$0$0$484,469
60$1,544,322$0$0$505,811
61$1,611,397$0$0$528,446
62$1,682,464$0$0$552,477
63$1,757,841$0$0$578,019
64$1,837,875$0$0$605,195
65$1,922,946$0$0$634,142
66$2,013,468$0$0$665,009
67$2,109,897$0$0$697,959
68$2,212,730$0$0$733,172
69$2,322,512$0$0$770,842
70$2,439,840$0$0$811,186
71$2,565,370$0$0$854,440
72$2,699,818$0$0$900,861
73$2,843,973$0$0$950,734
74$2,998,698$0$0$1,004,371
75$3,164,941$0$0$1,062,114
76$3,343,742$0$0$1,124,338
77$3,536,245$0$0$1,191,457
78$3,743,703$0$0$1,263,923
79$3,967,495$0$0$1,342,236
80$4,209,135$0$0$1,426,942
81$4,470,286$0$0$1,518,644
82$4,752,777$0$0$1,618,004
83$5,058,618$0$0$1,725,748
84$5,390,017$0$0$1,842,678
85$5,749,405$0$0$1,969,673
86$6,139,453$0$0$2,107,702
87$6,563,100$0$0$2,257,829
88$7,023,577$0$0$2,421,225
89$7,524,441$0$0$2,599,181
90$8,069,603$0$0$2,793,114
91$8,663,369$0$0$3,004,586
92$9,310,475$0$0$3,235,316
93$10,016,134$0$0$3,487,194
94$10,786,084$0$0$3,762,303
95$11,626,640$0$0$4,062,935
96$12,544,755$0$0$4,391,612
97$13,548,081$0$0$4,751,114
98$14,645,046$0$0$5,144,499
99$15,844,925$0$0$5,575,136
100$17,157,934$0$0$6,046,733