Can I retire at age 40 with 656,000?

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 $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%11.9%
1 years$54,172$53,689$53,219$52,759$52,310$51,894
2 years$26,818$26,318$25,834$25,365$24,910$24,490
3 years$17,701$17,199$16,716$16,252$15,804$15,393
4 years$13,143$12,643$12,165$11,708$11,271$10,874
5 years$10,410$9,913$9,441$8,993$8,568$8,185
6 years$8,588$8,094$7,630$7,192$6,780$6,411
7 years$7,287$6,798$6,340$5,913$5,514$5,159
8 years$6,312$5,827$5,377$4,960$4,574$4,235
9 years$5,553$5,073$4,631$4,225$3,852$3,527
10 years$4,947$4,472$4,038$3,642$3,282$2,971
11 years$4,452$3,981$3,555$3,170$2,823$2,526
12 years$4,039$3,573$3,155$2,780$2,446$2,163
13 years$3,690$3,229$2,818$2,454$2,133$1,864
14 years$3,391$2,935$2,532$2,179$1,870$1,614
15 years$3,133$2,681$2,286$1,943$1,646$1,403
16 years$2,906$2,460$2,073$1,740$1,455$1,224
17 years$2,707$2,266$1,886$1,563$1,290$1,072
18 years$2,530$2,094$1,722$1,409$1,147$940
19 years$2,372$1,940$1,576$1,273$1,023$827
20 years$2,230$1,803$1,447$1,153$913$729
21 years$2,101$1,679$1,331$1,046$817$643
22 years$1,984$1,568$1,226$951$733$568
23 years$1,878$1,466$1,132$866$658$503
24 years$1,781$1,374$1,047$790$591$446
25 years$1,691$1,289$970$722$532$395
26 years$1,609$1,212$900$660$479$351
27 years$1,533$1,140$835$604$432$312
28 years$1,462$1,074$777$553$390$277
29 years$1,396$1,014$723$507$352$246
30 years$1,335$957$673$466$318$219
31 years$1,278$905$628$428$288$195
32 years$1,225$856$586$393$260$174
33 years$1,175$811$547$361$235$155
34 years$1,128$769$511$333$213$138
35 years$1,084$729$478$306$193$123
36 years$1,042$692$447$282$175$110
37 years$1,003$657$418$260$158$98
38 years$965$625$392$239$144$87
39 years$930$594$367$221$130$78
40 years$897$565$344$204$118$70
41 years$865$538$322$188$107$62
42 years$835$512$302$173$97$55
43 years$807$488$284$160$88$49
44 years$779$465$266$148$80$44
45 years$754$444$250$137$73$39
46 years$729$423$235$126$66$35
47 years$705$404$221$116$60$31
48 years$683$386$207$108$54$28
49 years$661$368$195$99$49$25
50 years$640$352$183$92$45$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $656,000, adding $3,759 every year, while hoping to spend $22,967 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: 53/36/11 Blend
39$656,000$656,000$656,000$656,000
40$726,789$692,021$681,853$763,048
41$776,485$701,494$680,259$797,603
42$830,480$710,660$677,841$832,385
43$889,189$719,482$674,548$869,691
44$953,067$727,918$670,326$909,767
45$1,022,615$735,921$665,118$952,881
46$1,098,386$743,446$658,863$999,332
47$1,180,987$750,440$651,501$1,049,448
48$1,271,086$756,850$642,964$1,103,591
49$1,369,418$762,617$633,185$1,162,162
50$1,476,794$767,681$622,092$1,225,601
51$1,594,105$771,975$609,610$1,294,397
52$1,722,332$775,429$595,660$1,369,087
53$1,862,555$777,971$580,160$1,450,265
54$2,015,964$779,520$563,024$1,538,586
55$2,183,869$779,993$544,162$1,634,774
56$2,367,711$779,301$523,479$1,739,626
57$2,569,081$777,349$500,878$1,854,023
58$2,789,725$774,037$476,256$1,978,938
59$3,031,571$769,259$449,505$2,115,444
60$3,296,740$762,901$420,512$2,264,723
61$3,587,568$754,845$389,160$2,428,082
62$3,906,630$744,962$355,327$2,606,962
63$4,256,760$733,118$318,884$2,802,955
64$4,641,080$719,172$279,697$3,017,814
65$5,063,030$702,971$237,626$3,253,475
66$5,526,398$684,356$192,526$3,512,075
67$6,035,358$663,157$144,243$3,795,970
68$6,594,509$639,195$92,619$4,107,760
69$7,208,914$612,281$37,487$4,450,312
70$7,884,154$582,214$0$4,826,790
71$8,626,377$548,781$0$5,243,190
72$9,442,354$511,759$0$5,705,714
73$10,339,548$470,909$0$6,214,225
74$11,326,179$425,980$0$6,773,431
75$12,411,304$376,708$0$7,388,520
76$13,604,903$322,812$0$8,065,215
77$14,917,969$263,996$0$8,809,826
78$16,362,617$199,948$0$9,629,310
79$17,952,194$130,335$0$10,531,337
80$19,701,407$54,811$0$11,524,365
81$21,626,459$0$0$12,617,719
82$23,745,205$0$0$13,832,374
83$26,077,318$0$0$15,193,326
84$28,644,475$0$0$16,691,522
85$31,470,560$0$0$18,340,910
86$34,581,894$0$0$20,156,863
87$38,007,475$0$0$22,156,315
88$41,779,260$0$0$24,357,930
89$45,932,460$0$0$26,782,273
90$50,505,875$0$0$29,452,003
91$55,542,261$0$0$32,392,091
92$61,088,729$0$0$35,630,051
93$67,197,192$0$0$39,196,204
94$73,924,858$0$0$43,123,958
95$81,334,762$0$0$47,450,130
96$89,496,368$0$0$52,215,288
97$98,486,220$0$0$57,464,139
98$108,388,666$0$0$63,245,943
99$119,296,651$0$0$69,614,985
100$131,312,600$0$0$76,631,085