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%11.8%
1 years$56,732$56,226$55,733$55,252$54,782$54,369
2 years$28,085$27,562$27,055$26,564$26,087$25,670
3 years$18,537$18,012$17,506$17,020$16,551$16,143
4 years$13,764$13,241$12,740$12,262$11,804$11,409
5 years$10,901$10,381$9,887$9,418$8,973$8,592
6 years$8,993$8,477$7,990$7,532$7,100$6,734
7 years$7,631$7,119$6,640$6,192$5,774$5,422
8 years$6,610$6,102$5,631$5,195$4,790$4,453
9 years$5,816$5,313$4,850$4,425$4,034$3,711
10 years$5,181$4,683$4,228$3,814$3,437$3,128
11 years$4,662$4,169$3,723$3,319$2,956$2,661
12 years$4,230$3,742$3,304$2,912$2,562$2,280
13 years$3,864$3,382$2,952$2,570$2,234$1,966
14 years$3,552$3,074$2,652$2,282$1,958$1,703
15 years$3,281$2,808$2,394$2,035$1,724$1,482
16 years$3,044$2,576$2,171$1,822$1,524$1,294
17 years$2,835$2,373$1,975$1,637$1,351$1,133
18 years$2,649$2,192$1,803$1,475$1,201$995
19 years$2,484$2,032$1,651$1,333$1,071$876
20 years$2,335$1,888$1,515$1,207$956$772
21 years$2,200$1,759$1,394$1,096$856$682
22 years$2,078$1,642$1,284$996$767$603
23 years$1,967$1,535$1,186$907$689$534
24 years$1,865$1,439$1,097$828$619$474
25 years$1,771$1,350$1,016$756$557$420
26 years$1,685$1,269$942$691$502$374
27 years$1,605$1,194$875$633$452$332
28 years$1,531$1,125$813$580$408$295
29 years$1,462$1,062$757$531$369$263
30 years$1,398$1,003$705$488$333$234
31 years$1,339$948$657$448$301$209
32 years$1,283$897$613$412$272$186
33 years$1,230$849$573$379$246$166
34 years$1,181$805$535$348$223$148
35 years$1,135$763$500$321$202$132
36 years$1,091$725$468$295$183$118
37 years$1,050$688$438$272$166$105
38 years$1,011$654$410$251$150$94
39 years$974$622$384$231$136$84
40 years$939$592$360$213$124$75
41 years$906$563$338$197$112$67
42 years$875$536$317$182$102$60
43 years$845$511$297$168$92$53
44 years$816$487$279$155$84$48
45 years$789$465$262$143$76$43
46 years$763$443$246$132$69$38
47 years$739$423$231$122$63$34
48 years$715$404$217$113$57$30
49 years$692$386$204$104$52$27
50 years$671$368$192$96$47$24

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $687,000, adding $4,255 every year, while hoping to spend $51,174 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: 37/39/24 Blend
39$687,000$687,000$687,000$687,000
40$761,463$725,052$714,404$784,021
41$784,684$706,131$683,887$781,997
42$808,557$684,567$650,634$774,772
43$833,097$660,178$614,497$765,952
44$858,315$632,769$575,325$755,423
45$884,223$602,134$532,958$743,067
46$910,832$568,057$487,230$728,759
47$938,152$530,307$437,967$712,365
48$966,193$488,641$384,988$693,746
49$994,963$442,803$328,104$672,752
50$1,024,469$392,520$267,115$649,227
51$1,054,717$337,507$201,816$623,004
52$1,085,713$277,459$131,991$593,908
53$1,117,457$212,056$57,415$561,753
54$1,149,951$140,959$0$526,343
55$1,183,192$63,813$0$493,147
56$1,217,176$0$0$472,327
57$1,251,895$0$0$457,480
58$1,287,339$0$0$470,264
59$1,323,492$0$0$483,284
60$1,360,335$0$0$496,531
61$1,397,845$0$0$509,994
62$1,435,991$0$0$523,659
63$1,474,738$0$0$537,509
64$1,514,045$0$0$551,526
65$1,553,860$0$0$565,688
66$1,594,126$0$0$579,968
67$1,634,776$0$0$594,336
68$1,675,730$0$0$608,760
69$1,716,898$0$0$623,199
70$1,758,179$0$0$637,610
71$1,799,454$0$0$651,943
72$1,840,591$0$0$666,140
73$1,881,437$0$0$680,138
74$1,921,823$0$0$693,864
75$1,961,555$0$0$707,238
76$2,000,416$0$0$720,167
77$2,038,164$0$0$732,551
78$2,074,523$0$0$744,273
79$2,109,187$0$0$755,207
80$2,141,813$0$0$765,209
81$2,172,019$0$0$774,120
82$2,199,375$0$0$781,762
83$2,223,404$0$0$787,937
84$2,243,575$0$0$792,425
85$2,259,295$0$0$794,980
86$2,269,905$0$0$795,330
87$2,274,672$0$0$793,172
88$2,272,783$0$0$788,171
89$2,263,332$0$0$779,954
90$2,245,318$0$0$768,107
91$2,217,626$0$0$752,173
92$2,179,023$0$0$731,644
93$2,128,142$0$0$705,958
94$2,063,467$0$0$674,491
95$1,983,320$0$0$636,556
96$1,885,844$0$0$591,389
97$1,768,982$0$0$538,147
98$1,630,459$0$0$475,897
99$1,467,761$0$0$403,608
100$1,278,103$0$0$320,139