Can I retire at age 40 with 668,000?

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 $668,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.6%
1 years$55,163$54,671$54,192$53,724$53,267$52,689
2 years$27,308$26,800$26,307$25,829$25,365$24,783
3 years$18,025$17,514$17,022$16,549$16,093$15,525
4 years$13,384$12,875$12,388$11,923$11,478$10,928
5 years$10,600$10,094$9,613$9,158$8,725$8,196
6 years$8,745$8,242$7,769$7,323$6,904$6,395
7 years$7,420$6,922$6,456$6,021$5,615$5,127
8 years$6,427$5,933$5,475$5,051$4,658$4,191
9 years$5,655$5,166$4,716$4,302$3,923$3,476
10 years$5,038$4,554$4,111$3,709$3,342$2,916
11 years$4,533$4,054$3,620$3,228$2,874$2,469
12 years$4,113$3,639$3,212$2,831$2,491$2,105
13 years$3,758$3,288$2,870$2,499$2,172$1,805
14 years$3,453$2,989$2,579$2,219$1,904$1,556
15 years$3,190$2,730$2,328$1,979$1,677$1,347
16 years$2,959$2,505$2,111$1,772$1,482$1,169
17 years$2,756$2,307$1,921$1,592$1,314$1,018
18 years$2,576$2,132$1,753$1,435$1,168$889
19 years$2,415$1,976$1,605$1,296$1,041$778
20 years$2,270$1,836$1,473$1,174$930$682
21 years$2,139$1,710$1,355$1,065$832$599
22 years$2,021$1,596$1,249$969$746$526
23 years$1,912$1,493$1,153$882$670$463
24 years$1,813$1,399$1,066$805$602$408
25 years$1,722$1,313$988$735$542$360
26 years$1,638$1,234$916$672$488$318
27 years$1,561$1,161$851$615$440$281
28 years$1,489$1,094$791$564$397$248
29 years$1,422$1,032$736$517$358$220
30 years$1,360$975$685$474$324$194
31 years$1,302$922$639$436$293$172
32 years$1,247$872$596$400$265$152
33 years$1,196$826$557$368$240$135
34 years$1,148$783$520$339$217$120
35 years$1,103$742$486$312$197$106
36 years$1,061$705$455$287$178$94
37 years$1,021$669$426$265$161$83
38 years$983$636$399$244$146$74
39 years$947$605$374$225$133$66
40 years$913$575$350$207$120$58
41 years$881$548$328$191$109$52
42 years$850$522$308$177$99$46
43 years$821$497$289$163$90$41
44 years$794$474$271$151$82$36
45 years$767$452$255$139$74$32
46 years$742$431$239$128$67$28
47 years$718$411$225$119$61$25
48 years$695$393$211$110$55$22
49 years$673$375$199$101$50$20
50 years$652$358$187$94$46$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $668,000, adding $6,045 every year, while hoping to spend $23,432 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: 55/31/14 Blend
39$668,000$668,000$668,000$668,000
40$742,371$706,967$696,613$780,169
41$793,162$716,677$695,019$816,248
42$848,348$726,078$692,585$852,461
43$908,352$735,129$689,260$891,353
44$973,642$743,787$684,987$933,186
45$1,044,729$752,009$679,710$978,247
46$1,122,177$759,744$673,367$1,026,854
47$1,206,609$766,941$665,894$1,079,357
48$1,298,707$773,544$657,225$1,136,142
49$1,399,222$779,495$647,290$1,197,637
50$1,508,984$784,732$636,015$1,264,312
51$1,628,904$789,187$623,325$1,336,686
52$1,759,984$792,789$609,138$1,415,334
53$1,903,330$795,463$593,372$1,500,888
54$2,060,158$797,129$575,938$1,594,047
55$2,231,806$797,701$556,744$1,695,582
56$2,419,751$797,089$535,696$1,806,343
57$2,625,615$795,196$512,691$1,927,268
58$2,851,188$791,921$487,626$2,059,394
59$3,098,439$787,154$460,391$2,203,863
60$3,369,536$780,782$430,871$2,361,936
61$3,666,870$772,681$398,947$2,535,004
62$3,993,072$762,723$364,492$2,724,603
63$4,351,040$750,771$327,377$2,932,424
64$4,743,967$736,680$287,465$3,160,338
65$5,175,369$720,295$244,613$3,410,405
66$5,649,122$701,455$198,673$3,684,898
67$6,169,492$679,986$149,488$3,986,326
68$6,741,181$655,706$96,897$4,317,455
69$7,369,368$628,422$40,729$4,681,338
70$8,059,758$597,929$0$5,081,340
71$8,818,638$564,012$0$5,524,044
72$9,652,932$526,441$0$6,017,355
73$10,570,270$484,976$0$6,559,728
74$11,579,058$439,360$0$7,156,175
75$12,688,556$389,324$0$7,812,221
76$13,908,970$334,581$0$8,533,957
77$15,251,540$274,831$0$9,328,099
78$16,728,653$209,754$0$10,202,050
79$18,353,959$139,015$0$11,163,974
80$20,142,493$62,257$0$12,222,868
81$22,110,825$0$0$13,388,654
82$24,277,212$0$0$14,679,394
83$26,661,770$0$0$16,123,571
84$29,286,663$0$0$17,713,380
85$32,176,315$0$0$19,463,625
86$35,357,637$0$0$21,390,614
87$38,860,284$0$0$23,512,319
88$42,716,930$0$0$25,848,543
89$46,963,580$0$0$28,421,109
90$51,639,909$0$0$31,254,061
91$56,789,633$0$0$34,373,895
92$62,460,926$0$0$37,809,807
93$68,706,872$0$0$41,593,971
94$75,585,965$0$0$45,761,837
95$83,162,662$0$0$50,352,472
96$91,507,990$0$0$55,408,924
97$100,700,217$0$0$60,978,630
98$110,825,592$0$0$67,113,863
99$121,979,154$0$0$73,872,225
100$134,265,634$0$0$81,317,192