Can I retire at age 40 with 687,000?

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 $687,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.7%
1 years$56,732$56,226$55,733$55,252$54,782$54,165
2 years$28,085$27,562$27,055$26,564$26,087$25,466
3 years$18,537$18,012$17,506$17,020$16,551$15,944
4 years$13,764$13,241$12,740$12,262$11,804$11,218
5 years$10,901$10,381$9,887$9,418$8,973$8,408
6 years$8,993$8,477$7,990$7,532$7,100$6,558
7 years$7,631$7,119$6,640$6,192$5,774$5,254
8 years$6,610$6,102$5,631$5,195$4,790$4,293
9 years$5,816$5,313$4,850$4,425$4,034$3,559
10 years$5,181$4,683$4,228$3,814$3,437$2,984
11 years$4,662$4,169$3,723$3,319$2,956$2,524
12 years$4,230$3,742$3,304$2,912$2,562$2,151
13 years$3,864$3,382$2,952$2,570$2,234$1,843
14 years$3,552$3,074$2,652$2,282$1,958$1,588
15 years$3,281$2,808$2,394$2,035$1,724$1,373
16 years$3,044$2,576$2,171$1,822$1,524$1,192
17 years$2,835$2,373$1,975$1,637$1,351$1,037
18 years$2,649$2,192$1,803$1,475$1,201$905
19 years$2,484$2,032$1,651$1,333$1,071$791
20 years$2,335$1,888$1,515$1,207$956$693
21 years$2,200$1,759$1,394$1,096$856$608
22 years$2,078$1,642$1,284$996$767$534
23 years$1,967$1,535$1,186$907$689$470
24 years$1,865$1,439$1,097$828$619$414
25 years$1,771$1,350$1,016$756$557$365
26 years$1,685$1,269$942$691$502$322
27 years$1,605$1,194$875$633$452$284
28 years$1,531$1,125$813$580$408$251
29 years$1,462$1,062$757$531$369$222
30 years$1,398$1,003$705$488$333$196
31 years$1,339$948$657$448$301$173
32 years$1,283$897$613$412$272$153
33 years$1,230$849$573$379$246$136
34 years$1,181$805$535$348$223$120
35 years$1,135$763$500$321$202$106
36 years$1,091$725$468$295$183$94
37 years$1,050$688$438$272$166$83
38 years$1,011$654$410$251$150$74
39 years$974$622$384$231$136$66
40 years$939$592$360$213$124$58
41 years$906$563$338$197$112$52
42 years$875$536$317$182$102$46
43 years$845$511$297$168$92$40
44 years$816$487$279$155$84$36
45 years$789$465$262$143$76$32
46 years$763$443$246$132$69$28
47 years$739$423$231$122$63$25
48 years$715$404$217$113$57$22
49 years$692$386$204$104$52$20
50 years$671$368$192$96$47$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $687,000, adding $4,796 every year, while hoping to spend $53,781 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: 51/30/19 Blend
39$687,000$687,000$687,000$687,000
40$762,021$725,610$714,962$796,652
41$782,525$703,942$681,690$799,367
42$803,317$679,410$645,502$796,359
43$824,371$651,817$606,242$791,934
44$845,655$620,954$563,749$785,979
45$867,131$586,600$517,854$778,371
46$888,757$548,523$468,381$768,977
47$910,485$506,474$415,145$757,655
48$932,257$460,194$357,956$744,256
49$954,010$409,407$296,611$728,617
50$975,673$353,821$230,900$710,565
51$997,162$293,129$160,606$689,913
52$1,018,385$227,005$85,498$666,462
53$1,039,237$155,105$5,340$640,000
54$1,059,601$77,067$0$610,296
55$1,079,344$0$0$593,365
56$1,098,319$0$0$577,369
57$1,116,359$0$0$586,251
58$1,133,278$0$0$594,463
59$1,148,870$0$0$601,888
60$1,162,901$0$0$608,395
61$1,175,115$0$0$613,836
62$1,185,222$0$0$618,048
63$1,192,903$0$0$620,851
64$1,197,802$0$0$622,042
65$1,199,521$0$0$621,398
66$1,197,622$0$0$618,668
67$1,191,615$0$0$613,578
68$1,180,958$0$0$605,821
69$1,165,050$0$0$595,056
70$1,143,224$0$0$580,908
71$1,114,741$0$0$562,959
72$1,078,781$0$0$540,747
73$1,034,440$0$0$513,762
74$980,713$0$0$481,436
75$916,490$0$0$443,145
76$840,542$0$0$398,194
77$751,510$0$0$345,819
78$647,891$0$0$285,172
79$528,025$0$0$215,318
80$390,076$0$0$135,222
81$232,013$0$0$43,742
82$51,596$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0