Can I retire at age 40 with 685,000?

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 $685,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$56,567$56,063$55,571$55,091$54,623$53,718
2 years$28,003$27,482$26,976$26,486$26,011$25,102
3 years$18,483$17,960$17,455$16,970$16,502$15,618
4 years$13,724$13,202$12,703$12,226$11,770$10,916
5 years$10,870$10,351$9,858$9,391$8,947$8,127
6 years$8,967$8,452$7,967$7,510$7,080$6,293
7 years$7,609$7,098$6,620$6,174$5,758$5,006
8 years$6,591$6,084$5,615$5,179$4,776$4,059
9 years$5,799$5,298$4,836$4,412$4,022$3,340
10 years$5,166$4,670$4,216$3,803$3,427$2,778
11 years$4,649$4,157$3,712$3,310$2,948$2,331
12 years$4,218$3,731$3,294$2,903$2,554$1,970
13 years$3,853$3,372$2,943$2,563$2,227$1,674
14 years$3,541$3,065$2,644$2,275$1,953$1,429
15 years$3,271$2,800$2,387$2,029$1,719$1,225
16 years$3,035$2,569$2,165$1,817$1,519$1,054
17 years$2,827$2,366$1,970$1,632$1,347$909
18 years$2,642$2,186$1,798$1,471$1,198$785
19 years$2,477$2,026$1,646$1,329$1,068$680
20 years$2,328$1,883$1,511$1,204$954$590
21 years$2,194$1,754$1,390$1,093$853$513
22 years$2,072$1,637$1,281$993$765$446
23 years$1,961$1,531$1,182$905$687$388
24 years$1,859$1,434$1,094$825$617$339
25 years$1,766$1,346$1,013$754$555$295
26 years$1,680$1,265$939$689$500$258
27 years$1,600$1,191$872$631$451$225
28 years$1,527$1,122$811$578$407$197
29 years$1,458$1,058$755$530$368$172
30 years$1,394$1,000$703$486$332$151
31 years$1,335$945$655$447$300$132
32 years$1,279$894$611$410$272$115
33 years$1,227$847$571$377$246$101
34 years$1,178$803$533$347$223$88
35 years$1,131$761$499$320$202$77
36 years$1,088$722$467$294$183$68
37 years$1,047$686$437$271$166$59
38 years$1,008$652$409$250$150$52
39 years$971$620$383$231$136$46
40 years$937$590$359$213$123$40
41 years$903$562$337$196$112$35
42 years$872$535$316$181$102$31
43 years$842$510$296$167$92$27
44 years$814$486$278$154$84$24
45 years$787$463$261$143$76$21
46 years$761$442$245$132$69$18
47 years$736$422$230$122$63$16
48 years$713$403$217$112$57$14
49 years$690$384$204$104$52$12
50 years$669$367$191$96$47$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $685,000, adding $3,174 every year, while hoping to spend $38,960 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: 27/48/25 Blend
39$685,000$685,000$685,000$685,000
40$758,144$721,839$711,221$772,606
41$794,022$715,756$693,594$778,322
42$832,253$708,069$674,071$780,860
43$873,037$698,659$652,546$782,775
44$916,591$687,398$628,911$784,040
45$963,155$674,152$603,052$784,629
46$1,012,991$658,779$574,847$784,517
47$1,066,385$641,128$544,174$783,681
48$1,123,652$621,039$510,899$782,102
49$1,185,138$598,343$474,888$779,760
50$1,251,222$572,862$435,997$776,644
51$1,322,320$544,406$394,076$772,742
52$1,398,890$512,775$348,971$768,049
53$1,481,433$477,758$300,518$762,567
54$1,570,502$439,130$248,548$756,304
55$1,666,701$396,655$192,882$749,273
56$1,770,696$350,084$133,335$741,501
57$1,883,220$299,151$69,715$733,021
58$2,005,077$243,577$1,819$723,881
59$2,137,150$183,068$0$714,140
60$2,280,413$117,312$0$722,717
61$2,435,936$45,981$0$732,606
62$2,604,893$0$0$743,495
63$2,788,579$0$0$772,103
64$2,988,418$0$0$829,749
65$3,205,976$0$0$892,609
66$3,442,976$0$0$961,195
67$3,701,315$0$0$1,036,070
68$3,983,080$0$0$1,117,851
69$4,290,568$0$0$1,207,222
70$4,626,308$0$0$1,304,933
71$4,993,084$0$0$1,411,808
72$5,393,960$0$0$1,528,759
73$5,832,310$0$0$1,656,787
74$6,311,849$0$0$1,796,994
75$6,836,668$0$0$1,950,596
76$7,411,269$0$0$2,118,930
77$8,040,614$0$0$2,303,470
78$8,730,164$0$0$2,505,837
79$9,485,934$0$0$2,727,819
80$10,314,550$0$0$2,971,385
81$11,223,308$0$0$3,238,702
82$12,220,244$0$0$3,532,159
83$13,314,210$0$0$3,854,386
84$14,514,957$0$0$4,208,282
85$15,833,226$0$0$4,597,039
86$17,280,847$0$0$5,024,174
87$18,870,853$0$0$5,493,561
88$20,617,602$0$0$6,009,468
89$22,536,909$0$0$6,576,598
90$24,646,200$0$0$7,200,132
91$26,964,669$0$0$7,885,777
92$29,513,467$0$0$8,639,822
93$32,315,891$0$0$9,469,194
94$35,397,612$0$0$10,381,528
95$38,786,912$0$0$11,385,234
96$42,514,951$0$0$12,489,579
97$46,616,061$0$0$13,704,773
98$51,128,069$0$0$15,042,067
99$56,092,652$0$0$16,513,856
100$61,555,732$0$0$18,133,798