Can I retire at age 40 with 688,000?

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 $688,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.1%
1 years$56,814$56,308$55,815$55,333$54,862$53,710
2 years$28,126$27,602$27,094$26,602$26,125$24,970
3 years$18,564$18,038$17,532$17,044$16,575$15,453
4 years$13,785$13,260$12,759$12,279$11,821$10,741
5 years$10,917$10,396$9,901$9,432$8,986$7,950
6 years$9,007$8,489$8,002$7,543$7,111$6,120
7 years$7,642$7,129$6,649$6,201$5,783$4,838
8 years$6,619$6,111$5,639$5,202$4,797$3,898
9 years$5,824$5,321$4,857$4,431$4,040$3,186
10 years$5,189$4,690$4,235$3,820$3,442$2,632
11 years$4,669$4,175$3,728$3,324$2,961$2,194
12 years$4,236$3,747$3,309$2,916$2,566$1,841
13 years$3,870$3,387$2,956$2,574$2,237$1,553
14 years$3,557$3,078$2,656$2,285$1,961$1,316
15 years$3,285$2,812$2,398$2,038$1,727$1,120
16 years$3,048$2,580$2,174$1,825$1,526$955
17 years$2,839$2,376$1,978$1,639$1,353$817
18 years$2,653$2,196$1,806$1,477$1,203$701
19 years$2,487$2,035$1,653$1,335$1,072$602
20 years$2,338$1,891$1,517$1,209$958$518
21 years$2,204$1,761$1,396$1,097$857$446
22 years$2,081$1,644$1,286$998$768$385
23 years$1,970$1,538$1,188$909$690$332
24 years$1,868$1,441$1,098$829$620$287
25 years$1,774$1,352$1,017$757$558$248
26 years$1,687$1,271$944$692$502$215
27 years$1,607$1,196$876$633$453$186
28 years$1,533$1,127$814$580$409$161
29 years$1,465$1,063$758$532$369$140
30 years$1,400$1,004$706$488$334$121
31 years$1,341$949$658$449$302$105
32 years$1,285$898$614$412$273$91
33 years$1,232$850$573$379$247$79
34 years$1,183$806$536$349$223$69
35 years$1,136$765$501$321$202$60
36 years$1,093$726$469$296$183$52
37 years$1,051$689$439$272$166$45
38 years$1,012$655$411$251$151$39
39 years$976$623$385$232$137$34
40 years$941$593$361$214$124$29
41 years$907$564$338$197$112$25
42 years$876$537$317$182$102$22
43 years$846$512$298$168$93$19
44 years$817$488$279$155$84$17
45 years$790$465$262$143$76$15
46 years$764$444$246$132$69$13
47 years$740$424$232$122$63$11
48 years$716$404$218$113$57$10
49 years$693$386$204$104$52$8
50 years$672$369$192$96$47$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $688,000, adding $3,180 every year, while hoping to spend $48,209 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: 78/11/11 Blend
39$688,000$688,000$688,000$688,000
40$761,456$724,992$714,328$819,092
41$787,831$709,223$686,964$841,669
42$815,280$691,065$657,068$859,912
43$843,862$670,351$624,503$878,536
44$873,640$646,902$589,128$897,557
45$904,682$620,532$550,795$916,996
46$937,062$591,040$509,349$936,875
47$970,858$558,216$464,627$957,220
48$1,006,154$521,837$416,461$978,059
49$1,043,043$481,669$364,674$999,423
50$1,081,624$437,461$309,081$1,021,348
51$1,122,004$388,951$249,490$1,043,874
52$1,164,300$335,861$185,699$1,067,047
53$1,208,637$277,897$117,499$1,090,917
54$1,255,153$214,748$44,670$1,115,541
55$1,303,995$146,087$0$1,140,984
56$1,355,324$71,568$0$1,171,195
57$1,409,316$0$0$1,208,223
58$1,466,162$0$0$1,248,049
59$1,526,068$0$0$1,299,158
60$1,589,261$0$0$1,353,079
61$1,655,987$0$0$1,410,025
62$1,726,515$0$0$1,470,226
63$1,801,137$0$0$1,533,933
64$1,880,174$0$0$1,601,421
65$1,963,976$0$0$1,672,991
66$2,052,924$0$0$1,748,969
67$2,147,436$0$0$1,829,716
68$2,247,970$0$0$1,915,622
69$2,355,025$0$0$2,007,118
70$2,469,150$0$0$2,104,674
71$2,590,943$0$0$2,208,805
72$2,721,062$0$0$2,320,075
73$2,860,228$0$0$2,439,103
74$3,009,229$0$0$2,566,566
75$3,168,932$0$0$2,703,209
76$3,340,287$0$0$2,849,848
77$3,524,336$0$0$3,007,377
78$3,722,224$0$0$3,176,780
79$3,935,205$0$0$3,359,136
80$4,164,660$0$0$3,555,628
81$4,412,103$0$0$3,767,560
82$4,679,199$0$0$3,996,361
83$4,967,777$0$0$4,243,601
84$5,279,845$0$0$4,511,007
85$5,617,613$0$0$4,800,478
86$5,983,508$0$0$5,114,099
87$6,380,201$0$0$5,454,164
88$6,810,628$0$0$5,823,197
89$7,278,017$0$0$6,223,971
90$7,785,920$0$0$6,659,539
91$8,338,244$0$0$7,133,257
92$8,939,287$0$0$7,648,820
93$9,593,778$0$0$8,210,291
94$10,306,922$0$0$8,822,142
95$11,084,446$0$0$9,489,297
96$11,932,654$0$0$10,217,171
97$12,858,482$0$0$11,011,726
98$13,869,569$0$0$11,879,528
99$14,974,322$0$0$12,827,800
100$16,181,997$0$0$13,864,497