Can I retire at age 40 with 656,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $656,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$54,172$53,689$53,219$52,759$52,310$51,571
2 years$26,818$26,318$25,834$25,365$24,910$24,166
3 years$17,701$17,199$16,716$16,252$15,804$15,080
4 years$13,143$12,643$12,165$11,708$11,271$10,572
5 years$10,410$9,913$9,441$8,993$8,568$7,895
6 years$8,588$8,094$7,630$7,192$6,780$6,134
7 years$7,287$6,798$6,340$5,913$5,514$4,896
8 years$6,312$5,827$5,377$4,960$4,574$3,984
9 years$5,553$5,073$4,631$4,225$3,852$3,289
10 years$4,947$4,472$4,038$3,642$3,282$2,746
11 years$4,452$3,981$3,555$3,170$2,823$2,313
12 years$4,039$3,573$3,155$2,780$2,446$1,962
13 years$3,690$3,229$2,818$2,454$2,133$1,674
14 years$3,391$2,935$2,532$2,179$1,870$1,435
15 years$3,133$2,681$2,286$1,943$1,646$1,235
16 years$2,906$2,460$2,073$1,740$1,455$1,067
17 years$2,707$2,266$1,886$1,563$1,290$924
18 years$2,530$2,094$1,722$1,409$1,147$802
19 years$2,372$1,940$1,576$1,273$1,023$698
20 years$2,230$1,803$1,447$1,153$913$608
21 years$2,101$1,679$1,331$1,046$817$531
22 years$1,984$1,568$1,226$951$733$464
23 years$1,878$1,466$1,132$866$658$406
24 years$1,781$1,374$1,047$790$591$355
25 years$1,691$1,289$970$722$532$311
26 years$1,609$1,212$900$660$479$273
27 years$1,533$1,140$835$604$432$240
28 years$1,462$1,074$777$553$390$211
29 years$1,396$1,014$723$507$352$185
30 years$1,335$957$673$466$318$163
31 years$1,278$905$628$428$288$143
32 years$1,225$856$586$393$260$126
33 years$1,175$811$547$361$235$111
34 years$1,128$769$511$333$213$97
35 years$1,084$729$478$306$193$86
36 years$1,042$692$447$282$175$76
37 years$1,003$657$418$260$158$67
38 years$965$625$392$239$144$59
39 years$930$594$367$221$130$52
40 years$897$565$344$204$118$45
41 years$865$538$322$188$107$40
42 years$835$512$302$173$97$35
43 years$807$488$284$160$88$31
44 years$779$465$266$148$80$27
45 years$754$444$250$137$73$24
46 years$729$423$235$126$66$21
47 years$705$404$221$116$60$19
48 years$683$386$207$108$54$17
49 years$661$368$195$99$49$15
50 years$640$352$183$92$45$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $656,000, adding $2,966 every year, while hoping to spend $29,813 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: 56/28/16 Blend
39$656,000$656,000$656,000$656,000
40$725,971$691,203$681,035$763,415
41$768,300$693,352$672,129$791,345
42$813,946$694,606$661,926$818,271
43$863,218$694,891$650,349$846,926
44$916,453$694,127$637,322$877,480
45$974,020$692,228$622,762$910,125
46$1,036,329$689,106$606,583$945,070
47$1,103,826$684,664$588,695$982,550
48$1,177,004$678,800$569,004$1,022,824
49$1,256,405$671,408$547,413$1,066,176
50$1,342,624$662,373$523,817$1,112,926
51$1,436,317$651,574$498,110$1,163,423
52$1,538,203$638,884$470,179$1,218,058
53$1,649,077$624,166$439,907$1,277,258
54$1,769,810$607,277$407,171$1,341,502
55$1,901,363$588,066$371,843$1,411,315
56$2,044,791$566,370$333,789$1,487,280
57$2,201,258$542,021$292,869$1,570,042
58$2,372,044$514,837$248,938$1,660,313
59$2,558,556$484,628$201,841$1,758,882
60$2,762,347$451,193$151,421$1,866,620
61$2,985,123$414,318$97,510$1,984,491
62$3,228,764$373,778$39,936$2,113,561
63$3,495,341$329,336$0$2,255,007
64$3,787,131$280,739$0$2,413,801
65$4,106,644$227,721$0$2,595,225
66$4,456,645$170,002$0$2,794,077
67$4,840,176$107,286$0$3,012,147
68$5,260,589$39,258$0$3,251,412
69$5,721,576$0$0$3,514,052
70$6,227,202$0$0$3,813,076
71$6,781,947$0$0$4,154,480
72$7,390,741$0$0$4,529,209
73$8,059,019$0$0$4,940,616
74$8,792,766$0$0$5,392,394
75$9,598,574$0$0$5,888,609
76$10,483,707$0$0$6,433,744
77$11,456,164$0$0$7,032,734
78$12,524,761$0$0$7,691,018
79$13,699,206$0$0$8,414,587
80$14,990,198$0$0$9,210,041
81$16,409,522$0$0$10,084,651
82$17,970,162$0$0$11,046,431
83$19,686,423$0$0$12,104,205
84$21,574,068$0$0$13,267,701
85$23,650,460$0$0$14,547,633
86$25,934,734$0$0$15,955,806
87$28,447,968$0$0$17,505,229
88$31,213,392$0$0$19,210,234
89$34,256,596$0$0$21,086,612
90$37,605,779$0$0$23,151,765
91$41,292,012$0$0$25,424,864
92$45,349,530$0$0$27,927,036
93$49,816,055$0$0$30,681,557
94$54,733,153$0$0$33,714,077
95$60,146,624$0$0$37,052,859
96$66,106,937$0$0$40,729,045
97$72,669,700$0$0$44,776,951
98$79,896,190$0$0$49,234,390
99$87,853,929$0$0$54,143,029
100$96,617,319$0$0$59,548,781