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%13.9%
1 years$55,989$55,490$55,003$54,528$54,065$53,191
2 years$27,717$27,201$26,701$26,216$25,745$24,867
3 years$18,295$17,776$17,277$16,797$16,334$15,479
4 years$13,584$13,067$12,573$12,101$11,649$10,824
5 years$10,759$10,245$9,757$9,295$8,856$8,063
6 years$8,876$8,366$7,885$7,433$7,007$6,247
7 years$7,531$7,026$6,553$6,111$5,699$4,972
8 years$6,523$6,022$5,557$5,126$4,728$4,034
9 years$5,740$5,243$4,787$4,367$3,981$3,321
10 years$5,113$4,622$4,173$3,764$3,392$2,764
11 years$4,601$4,115$3,674$3,276$2,917$2,321
12 years$4,174$3,693$3,260$2,873$2,528$1,962
13 years$3,814$3,337$2,913$2,537$2,205$1,669
14 years$3,505$3,034$2,617$2,252$1,933$1,426
15 years$3,238$2,771$2,363$2,008$1,702$1,223
16 years$3,004$2,543$2,142$1,798$1,504$1,053
17 years$2,798$2,342$1,950$1,616$1,333$908
18 years$2,615$2,164$1,780$1,456$1,186$786
19 years$2,451$2,005$1,629$1,316$1,057$681
20 years$2,304$1,863$1,495$1,192$944$591
21 years$2,172$1,736$1,375$1,081$845$514
22 years$2,051$1,620$1,268$983$757$448
23 years$1,941$1,515$1,170$895$680$390
24 years$1,840$1,420$1,082$817$611$340
25 years$1,748$1,332$1,003$746$550$297
26 years$1,663$1,252$930$682$495$260
27 years$1,584$1,179$863$624$446$227
28 years$1,511$1,111$803$572$403$198
29 years$1,443$1,048$747$524$364$174
30 years$1,380$989$696$481$329$152
31 years$1,321$935$649$442$297$133
32 years$1,266$885$605$406$269$117
33 years$1,214$838$565$374$243$102
34 years$1,166$794$528$344$220$90
35 years$1,120$753$494$316$199$79
36 years$1,077$715$462$291$181$69
37 years$1,036$679$432$269$164$60
38 years$998$645$405$248$149$53
39 years$961$614$379$228$135$46
40 years$927$584$355$210$122$41
41 years$894$556$333$194$111$36
42 years$863$529$313$179$101$31
43 years$834$504$293$165$91$28
44 years$806$481$275$153$83$24
45 years$779$458$259$141$75$21
46 years$753$437$243$130$68$19
47 years$729$417$228$120$62$16
48 years$706$398$214$111$56$14
49 years$683$381$202$103$51$13
50 years$662$363$189$95$46$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $678,000, adding $4,660 every year, while hoping to spend $48,988 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: 72/6/22 Blend
39$678,000$678,000$678,000$678,000
40$751,963$716,029$705,520$801,716
41$776,540$698,991$677,032$818,435
42$801,983$679,477$645,948$830,463
43$828,326$657,313$612,129$842,423
44$855,610$632,316$575,430$854,300
45$883,876$604,293$535,699$866,080
46$913,165$573,037$492,779$877,749
47$943,524$538,333$446,504$889,292
48$975,003$499,950$396,701$900,695
49$1,007,653$457,647$343,190$911,942
50$1,041,528$411,166$285,782$923,018
51$1,076,688$360,238$224,280$933,908
52$1,113,196$304,575$158,479$944,598
53$1,151,118$243,875$88,164$955,072
54$1,190,526$177,819$13,111$965,317
55$1,231,497$106,069$0$975,320
56$1,274,111$28,269$0$1,000,790
57$1,318,459$0$0$1,030,300
58$1,364,632$0$0$1,064,513
59$1,412,734$0$0$1,102,104
60$1,462,873$0$0$1,141,293
61$1,515,166$0$0$1,182,173
62$1,569,740$0$0$1,224,844
63$1,626,732$0$0$1,269,413
64$1,686,288$0$0$1,315,996
65$1,748,568$0$0$1,364,720
66$1,813,745$0$0$1,415,720
67$1,882,005$0$0$1,469,143
68$1,953,549$0$0$1,525,150
69$2,028,598$0$0$1,583,914
70$2,107,390$0$0$1,645,622
71$2,190,182$0$0$1,710,479
72$2,277,256$0$0$1,778,707
73$2,368,917$0$0$1,850,548
74$2,465,499$0$0$1,926,264
75$2,567,362$0$0$2,006,143
76$2,674,903$0$0$2,090,496
77$2,788,551$0$0$2,179,665
78$2,908,777$0$0$2,274,021
79$3,036,093$0$0$2,373,971
80$3,171,061$0$0$2,479,957
81$3,314,291$0$0$2,592,465
82$3,466,454$0$0$2,712,025
83$3,628,282$0$0$2,839,216
84$3,800,577$0$0$2,974,674
85$3,984,215$0$0$3,119,093
86$4,180,157$0$0$3,273,234
87$4,389,457$0$0$3,437,931
88$4,613,267$0$0$3,614,099
89$4,852,852$0$0$3,802,738
90$5,109,600$0$0$4,004,950
91$5,385,031$0$0$4,221,938
92$5,680,816$0$0$4,455,026
93$5,998,785$0$0$4,705,666
94$6,340,951$0$0$4,975,453
95$6,709,522$0$0$5,266,137
96$7,106,923$0$0$5,579,641
97$7,535,820$0$0$5,918,078
98$7,999,140$0$0$6,283,768
99$8,500,101$0$0$6,679,264
100$9,042,239$0$0$7,107,369