Can I retire at age 40 with 674,000?

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 $674,000?

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$55,658$55,163$54,679$54,207$53,746$52,361
2 years$27,554$27,040$26,543$26,061$25,593$24,208
3 years$18,187$17,671$17,175$16,697$16,237$14,894
4 years$13,504$12,990$12,499$12,030$11,581$10,290
5 years$10,695$10,184$9,700$9,240$8,803$7,569
6 years$8,823$8,316$7,839$7,389$6,966$5,789
7 years$7,487$6,984$6,514$6,075$5,665$4,545
8 years$6,485$5,987$5,525$5,096$4,700$3,637
9 years$5,706$5,212$4,758$4,341$3,958$2,951
10 years$5,083$4,595$4,148$3,742$3,372$2,420
11 years$4,574$4,090$3,652$3,257$2,900$2,001
12 years$4,150$3,671$3,241$2,856$2,513$1,666
13 years$3,791$3,318$2,896$2,522$2,192$1,394
14 years$3,484$3,016$2,602$2,239$1,921$1,172
15 years$3,218$2,755$2,349$1,996$1,692$989
16 years$2,986$2,528$2,130$1,788$1,495$837
17 years$2,781$2,328$1,938$1,606$1,326$710
18 years$2,599$2,151$1,769$1,447$1,179$603
19 years$2,437$1,993$1,620$1,308$1,051$514
20 years$2,291$1,852$1,486$1,185$938$438
21 years$2,159$1,725$1,367$1,075$840$374
22 years$2,039$1,611$1,260$977$753$319
23 years$1,930$1,506$1,163$890$676$273
24 years$1,830$1,411$1,076$812$607$234
25 years$1,738$1,325$997$741$546$200
26 years$1,653$1,245$924$678$492$172
27 years$1,575$1,172$858$621$444$147
28 years$1,502$1,104$798$569$400$126
29 years$1,435$1,041$743$521$362$108
30 years$1,372$984$692$479$327$93
31 years$1,313$930$645$439$295$80
32 years$1,258$880$602$404$267$69
33 years$1,207$833$562$371$242$59
34 years$1,159$790$525$342$219$51
35 years$1,113$749$491$315$198$43
36 years$1,070$711$459$290$180$37
37 years$1,030$675$430$267$163$32
38 years$992$642$402$246$148$28
39 years$956$610$377$227$134$24
40 years$921$581$353$209$121$20
41 years$889$553$331$193$110$18
42 years$858$526$311$178$100$15
43 years$829$501$292$164$91$13
44 years$801$478$274$152$82$11
45 years$774$456$257$140$75$10
46 years$749$435$241$130$68$8
47 years$725$415$227$120$62$7
48 years$701$396$213$111$56$6
49 years$679$378$200$102$51$5
50 years$658$361$188$94$46$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $674,000, adding $5,165 every year, while hoping to spend $32,250 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: 35/45/20 Blend
39$674,000$674,000$674,000$674,000
40$748,076$712,354$701,907$769,540
41$790,066$712,945$691,107$786,337
42$835,258$712,485$678,864$801,090
43$883,944$710,887$665,097$816,340
44$936,447$708,061$649,718$832,152
45$993,119$703,910$632,637$848,597
46$1,054,347$698,332$613,761$865,756
47$1,120,559$691,219$592,991$883,724
48$1,192,223$682,455$570,222$902,606
49$1,269,853$671,918$545,348$922,519
50$1,354,016$659,480$518,255$943,599
51$1,445,334$645,004$488,826$965,996
52$1,544,494$628,345$456,937$989,881
53$1,652,247$609,349$422,459$1,015,446
54$1,769,423$587,853$385,258$1,042,905
55$1,896,933$563,687$345,193$1,072,501
56$2,035,781$536,668$302,118$1,104,504
57$2,187,070$506,605$255,878$1,139,218
58$2,352,015$473,292$206,314$1,176,982
59$2,531,954$436,516$153,258$1,218,175
60$2,728,357$396,049$96,536$1,263,223
61$2,942,844$351,651$35,966$1,312,598
62$3,177,200$303,067$0$1,366,830
63$3,433,386$250,030$0$1,432,627
64$3,713,566$192,255$0$1,513,115
65$4,020,117$129,444$0$1,601,388
66$4,355,662$61,279$0$1,698,307
67$4,723,085$0$0$1,804,827
68$5,125,565$0$0$1,928,232
69$5,566,600$0$0$2,096,805
70$6,050,045$0$0$2,281,687
71$6,580,144$0$0$2,484,514
72$7,161,573$0$0$2,707,088
73$7,799,481$0$0$2,951,392
74$8,499,539$0$0$3,219,613
75$9,267,995$0$0$3,514,159
76$10,111,731$0$0$3,837,682
77$11,038,328$0$0$4,193,104
78$12,056,136$0$0$4,583,645
79$13,174,356$0$0$5,012,851
80$14,403,121$0$0$5,484,628
81$15,753,598$0$0$6,003,281
82$17,238,086$0$0$6,573,552
83$18,870,137$0$0$7,200,666
84$20,664,681$0$0$7,890,379
85$22,638,166$0$0$8,649,033
86$24,808,717$0$0$9,483,615
87$27,196,299$0$0$10,401,825
88$29,822,913$0$0$11,412,145
89$32,712,798$0$0$12,523,921
90$35,892,662$0$0$13,747,452
91$39,391,932$0$0$15,094,086
92$43,243,031$0$0$16,576,324
93$47,481,686$0$0$18,207,944
94$52,147,261$0$0$20,004,125
95$57,283,132$0$0$21,981,595
96$62,937,092$0$0$24,158,783
97$69,161,805$0$0$26,556,000
98$76,015,301$0$0$29,195,622
99$83,561,521$0$0$32,102,310
100$91,870,925$0$0$35,303,234