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%12.3%
1 years$55,658$55,163$54,679$54,207$53,746$53,229
2 years$27,554$27,040$26,543$26,061$25,593$25,072
3 years$18,187$17,671$17,175$16,697$16,237$15,729
4 years$13,504$12,990$12,499$12,030$11,581$11,088
5 years$10,695$10,184$9,700$9,240$8,803$8,329
6 years$8,823$8,316$7,839$7,389$6,966$6,510
7 years$7,487$6,984$6,514$6,075$5,665$5,227
8 years$6,485$5,987$5,525$5,096$4,700$4,281
9 years$5,706$5,212$4,758$4,341$3,958$3,557
10 years$5,083$4,595$4,148$3,742$3,372$2,989
11 years$4,574$4,090$3,652$3,257$2,900$2,535
12 years$4,150$3,671$3,241$2,856$2,513$2,166
13 years$3,791$3,318$2,896$2,522$2,192$1,861
14 years$3,484$3,016$2,602$2,239$1,921$1,607
15 years$3,218$2,755$2,349$1,996$1,692$1,394
16 years$2,986$2,528$2,130$1,788$1,495$1,213
17 years$2,781$2,328$1,938$1,606$1,326$1,058
18 years$2,599$2,151$1,769$1,447$1,179$926
19 years$2,437$1,993$1,620$1,308$1,051$812
20 years$2,291$1,852$1,486$1,185$938$713
21 years$2,159$1,725$1,367$1,075$840$628
22 years$2,039$1,611$1,260$977$753$553
23 years$1,930$1,506$1,163$890$676$488
24 years$1,830$1,411$1,076$812$607$431
25 years$1,738$1,325$997$741$546$381
26 years$1,653$1,245$924$678$492$337
27 years$1,575$1,172$858$621$444$299
28 years$1,502$1,104$798$569$400$265
29 years$1,435$1,041$743$521$362$235
30 years$1,372$984$692$479$327$208
31 years$1,313$930$645$439$295$185
32 years$1,258$880$602$404$267$164
33 years$1,207$833$562$371$242$146
34 years$1,159$790$525$342$219$129
35 years$1,113$749$491$315$198$115
36 years$1,070$711$459$290$180$102
37 years$1,030$675$430$267$163$91
38 years$992$642$402$246$148$81
39 years$956$610$377$227$134$72
40 years$921$581$353$209$121$64
41 years$889$553$331$193$110$57
42 years$858$526$311$178$100$51
43 years$829$501$292$164$91$45
44 years$801$478$274$152$82$40
45 years$774$456$257$140$75$36
46 years$749$435$241$130$68$32
47 years$725$415$227$120$62$28
48 years$701$396$213$111$56$25
49 years$679$378$200$102$51$22
50 years$658$361$188$94$46$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $674,000, adding $2,917 every year, while hoping to spend $27,229 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: 54/31/15 Blend
39$674,000$674,000$674,000$674,000
40$745,757$710,035$699,588$782,908
41$792,853$715,855$694,053$814,377
42$843,840$721,048$687,419$845,447
43$899,086$725,554$679,623$878,650
44$958,996$729,310$670,593$914,197
45$1,024,016$732,248$660,260$952,317
46$1,094,634$734,297$648,548$993,269
47$1,171,390$735,381$635,378$1,037,336
48$1,254,876$735,418$620,667$1,084,831
49$1,345,743$734,324$604,329$1,136,102
50$1,444,710$732,006$586,275$1,191,530
51$1,552,564$728,369$566,409$1,251,540
52$1,670,175$723,308$544,633$1,316,601
53$1,798,499$716,716$520,844$1,387,229
54$1,938,588$708,477$494,935$1,463,997
55$2,091,600$698,469$466,791$1,547,536
56$2,258,811$686,561$436,296$1,638,546
57$2,441,623$672,617$403,326$1,737,798
58$2,641,584$656,490$367,752$1,846,145
59$2,860,395$638,027$329,441$1,964,528
60$3,099,929$617,065$288,252$2,093,988
61$3,362,251$593,430$244,037$2,235,674
62$3,649,633$566,940$196,644$2,390,855
63$3,964,577$537,402$145,914$2,560,934
64$4,309,840$504,611$91,678$2,747,458
65$4,688,457$468,350$33,763$2,952,136
66$5,103,773$428,392$0$3,176,856
67$5,559,469$384,495$0$3,428,189
68$6,059,602$336,402$0$3,710,006
69$6,608,640$283,845$0$4,019,468
70$7,211,505$226,537$0$4,359,412
71$7,873,619$164,178$0$4,732,965
72$8,600,955$96,449$0$5,143,579
73$9,400,092$23,015$0$5,595,060
74$10,278,280$0$0$6,091,604
75$11,243,502$0$0$6,657,109
76$12,304,558$0$0$7,287,462
77$13,471,139$0$0$7,980,577
78$14,753,925$0$0$8,742,808
79$16,164,679$0$0$9,581,156
80$17,716,365$0$0$10,503,332
81$19,423,264$0$0$11,517,835
82$21,301,111$0$0$12,634,027
83$23,367,244$0$0$13,862,223
84$25,640,765$0$0$15,213,790
85$28,142,722$0$0$16,701,253
86$30,896,307$0$0$18,338,410
87$33,927,073$0$0$20,140,466
88$37,263,176$0$0$22,124,175
89$40,935,641$0$0$24,307,998
90$44,978,653$0$0$26,712,276
91$49,429,882$0$0$29,359,425
92$54,330,833$0$0$32,274,140
93$59,727,243$0$0$35,483,639
94$65,669,509$0$0$39,017,909
95$72,213,164$0$0$42,909,994
96$79,419,400$0$0$47,196,309
97$87,355,648$0$0$51,916,977
98$96,096,211$0$0$57,116,213
99$105,722,965$0$0$62,842,737
100$116,326,133$0$0$69,150,237