Can I retire at age 40 with 678,000?

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 $678,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$55,989$55,490$55,003$54,528$54,065$52,736
2 years$27,717$27,201$26,701$26,216$25,745$24,415
3 years$18,295$17,776$17,277$16,797$16,334$15,043
4 years$13,584$13,067$12,573$12,101$11,649$10,409
5 years$10,759$10,245$9,757$9,295$8,856$7,668
6 years$8,876$8,366$7,885$7,433$7,007$5,874
7 years$7,531$7,026$6,553$6,111$5,699$4,620
8 years$6,523$6,022$5,557$5,126$4,728$3,703
9 years$5,740$5,243$4,787$4,367$3,981$3,010
10 years$5,113$4,622$4,173$3,764$3,392$2,473
11 years$4,601$4,115$3,674$3,276$2,917$2,049
12 years$4,174$3,693$3,260$2,873$2,528$1,709
13 years$3,814$3,337$2,913$2,537$2,205$1,434
14 years$3,505$3,034$2,617$2,252$1,933$1,208
15 years$3,238$2,771$2,363$2,008$1,702$1,021
16 years$3,004$2,543$2,142$1,798$1,504$866
17 years$2,798$2,342$1,950$1,616$1,333$736
18 years$2,615$2,164$1,780$1,456$1,186$627
19 years$2,451$2,005$1,629$1,316$1,057$535
20 years$2,304$1,863$1,495$1,192$944$457
21 years$2,172$1,736$1,375$1,081$845$391
22 years$2,051$1,620$1,268$983$757$335
23 years$1,941$1,515$1,170$895$680$287
24 years$1,840$1,420$1,082$817$611$246
25 years$1,748$1,332$1,003$746$550$212
26 years$1,663$1,252$930$682$495$182
27 years$1,584$1,179$863$624$446$156
28 years$1,511$1,111$803$572$403$134
29 years$1,443$1,048$747$524$364$116
30 years$1,380$989$696$481$329$99
31 years$1,321$935$649$442$297$86
32 years$1,266$885$605$406$269$74
33 years$1,214$838$565$374$243$63
34 years$1,166$794$528$344$220$55
35 years$1,120$753$494$316$199$47
36 years$1,077$715$462$291$181$41
37 years$1,036$679$432$269$164$35
38 years$998$645$405$248$149$30
39 years$961$614$379$228$135$26
40 years$927$584$355$210$122$22
41 years$894$556$333$194$111$19
42 years$863$529$313$179$101$17
43 years$834$504$293$165$91$14
44 years$806$481$275$153$83$12
45 years$779$458$259$141$75$11
46 years$753$437$243$130$68$9
47 years$729$417$228$120$62$8
48 years$706$398$214$111$56$7
49 years$683$381$202$103$51$6
50 years$662$363$189$95$46$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $678,000, adding $4,898 every year, while hoping to spend $49,453 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: 62/19/19 Blend
39$678,000$678,000$678,000$678,000
40$752,208$716,274$705,765$794,888
41$776,316$698,754$676,791$806,729
42$801,225$678,718$645,188$813,680
43$826,965$655,990$610,817$820,122
44$853,568$630,386$573,531$826,012
45$881,064$601,707$533,177$831,303
46$909,489$569,747$489,595$835,944
47$938,878$534,286$442,617$839,883
48$969,268$495,090$392,070$843,067
49$1,000,698$451,915$337,769$845,436
50$1,033,210$404,499$279,525$846,929
51$1,066,847$352,570$217,139$847,484
52$1,101,655$295,835$150,403$847,032
53$1,137,682$233,989$79,099$845,503
54$1,174,979$166,708$3,003$842,823
55$1,213,600$93,650$0$838,915
56$1,253,602$14,453$0$849,551
57$1,295,044$0$0$860,472
58$1,337,992$0$0$885,931
59$1,382,511$0$0$915,459
60$1,428,676$0$0$946,083
61$1,476,561$0$0$977,854
62$1,526,248$0$0$1,010,826
63$1,577,824$0$0$1,045,058
64$1,631,383$0$0$1,080,612
65$1,687,021$0$0$1,117,555
66$1,744,846$0$0$1,155,958
67$1,804,970$0$0$1,195,897
68$1,867,514$0$0$1,237,454
69$1,932,608$0$0$1,280,716
70$2,000,393$0$0$1,325,778
71$2,071,017$0$0$1,372,740
72$2,144,642$0$0$1,421,713
73$2,221,441$0$0$1,472,812
74$2,301,603$0$0$1,526,166
75$2,385,329$0$0$1,581,910
76$2,472,837$0$0$1,640,192
77$2,564,364$0$0$1,701,172
78$2,660,164$0$0$1,765,023
79$2,760,514$0$0$1,831,932
80$2,865,714$0$0$1,902,103
81$2,976,089$0$0$1,975,755
82$3,091,991$0$0$2,053,129
83$3,213,803$0$0$2,134,484
84$3,341,944$0$0$2,220,103
85$3,476,864$0$0$2,310,294
86$3,619,060$0$0$2,405,392
87$3,769,067$0$0$2,505,763
88$3,927,471$0$0$2,611,805
89$4,094,913$0$0$2,723,953
90$4,272,090$0$0$2,842,681
91$4,459,763$0$0$2,968,506
92$4,658,763$0$0$3,101,996
93$4,870,001$0$0$3,243,769
94$5,094,471$0$0$3,394,502
95$5,333,260$0$0$3,554,936
96$5,587,559$0$0$3,725,881
97$5,858,671$0$0$3,908,225
98$6,148,024$0$0$4,102,940
99$6,457,181$0$0$4,311,094
100$6,787,858$0$0$4,533,853