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%13.5%
1 years$54,089$53,607$53,137$52,679$52,231$51,471
2 years$26,777$26,278$25,795$25,326$24,872$24,108
3 years$17,674$17,173$16,691$16,227$15,780$15,036
4 years$13,123$12,624$12,147$11,690$11,254$10,536
5 years$10,394$9,897$9,426$8,979$8,555$7,864
6 years$8,575$8,082$7,618$7,181$6,769$6,107
7 years$7,276$6,787$6,331$5,904$5,505$4,871
8 years$6,302$5,818$5,369$4,953$4,567$3,962
9 years$5,545$5,066$4,624$4,218$3,846$3,269
10 years$4,940$4,465$4,031$3,636$3,277$2,727
11 years$4,445$3,975$3,549$3,165$2,819$2,296
12 years$4,033$3,568$3,150$2,776$2,442$1,946
13 years$3,684$3,224$2,814$2,451$2,130$1,659
14 years$3,386$2,931$2,529$2,175$1,867$1,422
15 years$3,128$2,677$2,283$1,940$1,644$1,223
16 years$2,902$2,456$2,070$1,737$1,453$1,055
17 years$2,703$2,262$1,883$1,561$1,288$913
18 years$2,526$2,090$1,719$1,407$1,145$792
19 years$2,368$1,937$1,574$1,271$1,021$689
20 years$2,226$1,800$1,445$1,151$912$600
21 years$2,098$1,677$1,329$1,045$816$523
22 years$1,981$1,565$1,225$950$731$457
23 years$1,875$1,464$1,131$865$657$399
24 years$1,778$1,372$1,046$789$590$349
25 years$1,689$1,287$969$721$531$306
26 years$1,606$1,210$898$659$478$268
27 years$1,530$1,139$834$603$431$235
28 years$1,460$1,073$775$553$389$206
29 years$1,394$1,012$722$507$351$181
30 years$1,333$956$672$465$318$159
31 years$1,276$904$627$427$287$140
32 years$1,223$855$585$392$260$123
33 years$1,173$810$546$361$235$108
34 years$1,126$767$510$332$213$95
35 years$1,082$728$477$306$193$84
36 years$1,040$691$446$282$175$74
37 years$1,001$656$418$259$158$65
38 years$964$624$391$239$143$57
39 years$929$593$366$220$130$50
40 years$895$564$343$203$118$44
41 years$864$537$322$188$107$39
42 years$834$511$302$173$97$34
43 years$805$487$283$160$88$30
44 years$778$464$266$148$80$27
45 years$752$443$250$136$73$23
46 years$728$423$235$126$66$21
47 years$704$403$220$116$60$18
48 years$682$385$207$107$54$16
49 years$660$368$195$99$49$14
50 years$640$351$183$92$45$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $655,000, adding $3,226 every year, while hoping to spend $22,898 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: 49/41/10 Blend
39$655,000$655,000$655,000$655,000
40$725,138$690,423$680,270$758,565
41$774,738$699,890$678,696$791,291
42$828,631$709,054$676,301$824,142
43$887,229$717,875$673,035$859,298
44$950,987$726,312$668,843$896,982
45$1,020,407$734,320$663,668$937,438
46$1,096,038$741,852$657,451$980,938
47$1,178,488$748,857$650,129$1,027,781
48$1,268,423$755,280$641,638$1,078,297
49$1,366,578$761,065$631,909$1,132,852
50$1,473,762$766,149$620,870$1,191,847
51$1,590,863$770,468$608,447$1,255,727
52$1,718,863$773,952$594,561$1,324,985
53$1,858,839$776,528$579,131$1,400,161
54$2,011,978$778,116$562,070$1,481,855
55$2,179,590$778,634$543,289$1,570,728
56$2,363,113$777,992$522,695$1,667,509
57$2,564,134$776,097$500,188$1,773,005
58$2,784,398$772,848$475,667$1,888,104
59$3,025,829$768,140$449,024$2,013,789
60$3,290,545$761,860$420,148$2,151,143
61$3,580,878$753,888$388,920$2,301,363
62$3,899,398$744,100$355,220$2,465,770
63$4,248,935$732,359$318,918$2,645,820
64$4,632,607$718,525$279,882$2,843,122
65$5,053,847$702,447$237,972$3,059,452
66$5,516,438$683,965$193,043$3,296,768
67$6,024,547$662,912$144,942$3,557,233
68$6,582,765$639,108$93,511$3,843,232
69$7,196,147$612,365$38,584$4,157,398
70$7,870,265$582,482$0$4,502,634
71$8,611,257$549,249$0$4,884,284
72$9,425,885$512,441$0$5,308,278
73$10,321,597$471,822$0$5,774,415
74$11,306,601$427,143$0$6,287,019
75$12,389,940$378,139$0$6,850,860
76$13,581,577$324,530$0$7,471,198
77$14,892,488$266,023$0$8,153,832
78$16,334,768$202,305$0$8,905,160
79$17,921,744$133,046$0$9,732,235
80$19,668,096$57,901$0$10,642,837
81$21,590,005$0$0$11,645,543
82$23,705,294$0$0$12,760,413
83$26,033,606$0$0$14,016,396
84$28,596,583$0$0$15,399,053
85$31,418,071$0$0$16,921,261
86$34,524,347$0$0$18,597,206
87$37,944,364$0$0$20,442,521
88$41,710,027$0$0$22,474,434
89$45,856,491$0$0$24,711,924
90$50,422,493$0$0$27,175,910
91$55,450,719$0$0$29,889,438
92$60,988,207$0$0$32,877,906
93$67,086,786$0$0$36,169,300
94$73,803,570$0$0$39,794,458
95$81,201,495$0$0$43,787,362
96$89,349,912$0$0$48,185,460
97$98,325,242$0$0$53,030,015
98$108,211,697$0$0$58,366,499
99$119,102,076$0$0$64,245,017
100$131,098,635$0$0$70,720,786