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%16.3%
1 years$54,089$53,607$53,137$52,679$52,231$50,885
2 years$26,777$26,278$25,795$25,326$24,872$23,525
3 years$17,674$17,173$16,691$16,227$15,780$14,474
4 years$13,123$12,624$12,147$11,690$11,254$10,000
5 years$10,394$9,897$9,426$8,979$8,555$7,355
6 years$8,575$8,082$7,618$7,181$6,769$5,625
7 years$7,276$6,787$6,331$5,904$5,505$4,417
8 years$6,302$5,818$5,369$4,953$4,567$3,534
9 years$5,545$5,066$4,624$4,218$3,846$2,868
10 years$4,940$4,465$4,031$3,636$3,277$2,352
11 years$4,445$3,975$3,549$3,165$2,819$1,945
12 years$4,033$3,568$3,150$2,776$2,442$1,619
13 years$3,684$3,224$2,814$2,451$2,130$1,355
14 years$3,386$2,931$2,529$2,175$1,867$1,139
15 years$3,128$2,677$2,283$1,940$1,644$961
16 years$2,902$2,456$2,070$1,737$1,453$813
17 years$2,703$2,262$1,883$1,561$1,288$690
18 years$2,526$2,090$1,719$1,407$1,145$586
19 years$2,368$1,937$1,574$1,271$1,021$499
20 years$2,226$1,800$1,445$1,151$912$426
21 years$2,098$1,677$1,329$1,045$816$363
22 years$1,981$1,565$1,225$950$731$310
23 years$1,875$1,464$1,131$865$657$266
24 years$1,778$1,372$1,046$789$590$227
25 years$1,689$1,287$969$721$531$195
26 years$1,606$1,210$898$659$478$167
27 years$1,530$1,139$834$603$431$143
28 years$1,460$1,073$775$553$389$123
29 years$1,394$1,012$722$507$351$105
30 years$1,333$956$672$465$318$90
31 years$1,276$904$627$427$287$78
32 years$1,223$855$585$392$260$67
33 years$1,173$810$546$361$235$57
34 years$1,126$767$510$332$213$49
35 years$1,082$728$477$306$193$42
36 years$1,040$691$446$282$175$36
37 years$1,001$656$418$259$158$31
38 years$964$624$391$239$143$27
39 years$929$593$366$220$130$23
40 years$895$564$343$203$118$20
41 years$864$537$322$188$107$17
42 years$834$511$302$173$97$15
43 years$805$487$283$160$88$13
44 years$778$464$266$148$80$11
45 years$752$443$250$136$73$9
46 years$728$423$235$126$66$8
47 years$704$403$220$116$60$7
48 years$682$385$207$107$54$6
49 years$660$368$195$99$49$5
50 years$640$351$183$92$45$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $655,000, adding $4,307 every year, while hoping to spend $32,780 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: 24/47/29 Blend
39$655,000$655,000$655,000$655,000
40$726,253$691,538$681,385$736,995
41$765,453$690,545$669,334$745,512
42$807,553$688,406$655,780$751,592
43$852,813$685,028$640,639$757,424
44$901,522$680,316$623,822$763,010
45$953,993$674,167$605,236$768,354
46$1,010,572$666,473$584,783$773,466
47$1,071,639$657,119$562,363$778,359
48$1,137,612$645,984$537,867$783,052
49$1,208,949$632,938$511,187$787,569
50$1,286,155$617,844$482,204$791,940
51$1,369,783$600,559$450,798$796,206
52$1,460,443$580,929$416,842$800,414
53$1,558,805$558,791$380,203$804,622
54$1,665,606$533,974$340,742$808,897
55$1,781,656$506,298$298,316$813,323
56$1,907,848$475,569$252,772$817,995
57$2,045,161$441,585$203,953$823,025
58$2,194,676$404,131$151,694$828,543
59$2,357,580$362,981$95,823$834,701
60$2,535,181$317,894$36,160$841,671
61$2,728,916$268,617$0$849,655
62$2,940,369$214,883$0$867,391
63$3,171,283$156,409$0$899,123
64$3,423,577$92,896$0$934,009
65$3,699,363$24,029$0$972,451
66$4,000,966$0$0$1,014,901
67$4,330,947$0$0$1,087,992
68$4,692,126$0$0$1,181,707
69$5,087,607$0$0$1,284,437
70$5,520,808$0$0$1,397,084
71$5,995,495$0$0$1,520,643
72$6,515,815$0$0$1,656,208
73$7,086,334$0$0$1,804,985
74$7,712,082$0$0$1,968,303
75$8,398,599$0$0$2,147,625
76$9,151,987$0$0$2,344,561
77$9,978,967$0$0$2,560,888
78$10,886,945$0$0$2,798,562
79$11,884,074$0$0$3,059,737
80$12,979,341$0$0$3,346,787
81$14,182,642$0$0$3,662,328
82$15,504,882$0$0$4,009,240
83$16,958,071$0$0$4,390,697
84$18,555,444$0$0$4,810,198
85$20,311,580$0$0$5,271,594
86$22,242,542$0$0$5,779,132
87$24,366,026$0$0$6,337,488
88$26,701,530$0$0$6,951,817
89$29,270,535$0$0$7,627,796
90$32,096,711$0$0$8,371,682
91$35,206,135$0$0$9,190,369
92$38,627,540$0$0$10,091,453
93$42,392,586$0$0$11,083,302
94$46,536,154$0$0$12,175,139
95$51,096,682$0$0$13,377,126
96$56,116,520$0$0$14,700,460
97$61,642,333$0$0$16,157,478
98$67,725,539$0$0$17,761,775
99$74,422,796$0$0$19,528,332
100$81,796,535$0$0$21,473,656