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%15.2%
1 years$56,814$56,308$55,815$55,333$54,862$53,689
2 years$28,126$27,602$27,094$26,602$26,125$24,948
3 years$18,564$18,038$17,532$17,044$16,575$15,432
4 years$13,785$13,260$12,759$12,279$11,821$10,721
5 years$10,917$10,396$9,901$9,432$8,986$7,931
6 years$9,007$8,489$8,002$7,543$7,111$6,102
7 years$7,642$7,129$6,649$6,201$5,783$4,821
8 years$6,619$6,111$5,639$5,202$4,797$3,883
9 years$5,824$5,321$4,857$4,431$4,040$3,171
10 years$5,189$4,690$4,235$3,820$3,442$2,619
11 years$4,669$4,175$3,728$3,324$2,961$2,181
12 years$4,236$3,747$3,309$2,916$2,566$1,829
13 years$3,870$3,387$2,956$2,574$2,237$1,542
14 years$3,557$3,078$2,656$2,285$1,961$1,306
15 years$3,285$2,812$2,398$2,038$1,727$1,110
16 years$3,048$2,580$2,174$1,825$1,526$947
17 years$2,839$2,376$1,978$1,639$1,353$809
18 years$2,653$2,196$1,806$1,477$1,203$693
19 years$2,487$2,035$1,653$1,335$1,072$595
20 years$2,338$1,891$1,517$1,209$958$512
21 years$2,204$1,761$1,396$1,097$857$441
22 years$2,081$1,644$1,286$998$768$380
23 years$1,970$1,538$1,188$909$690$328
24 years$1,868$1,441$1,098$829$620$283
25 years$1,774$1,352$1,017$757$558$244
26 years$1,687$1,271$944$692$502$211
27 years$1,607$1,196$876$633$453$183
28 years$1,533$1,127$814$580$409$158
29 years$1,465$1,063$758$532$369$137
30 years$1,400$1,004$706$488$334$119
31 years$1,341$949$658$449$302$103
32 years$1,285$898$614$412$273$89
33 years$1,232$850$573$379$247$77
34 years$1,183$806$536$349$223$67
35 years$1,136$765$501$321$202$58
36 years$1,093$726$469$296$183$50
37 years$1,051$689$439$272$166$44
38 years$1,012$655$411$251$151$38
39 years$976$623$385$232$137$33
40 years$941$593$361$214$124$29
41 years$907$564$338$197$112$25
42 years$876$537$317$182$102$21
43 years$846$512$298$168$93$19
44 years$817$488$279$155$84$16
45 years$790$465$262$143$76$14
46 years$764$444$246$132$69$12
47 years$740$424$232$122$63$11
48 years$716$404$218$113$57$9
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 $6,755 every year, while hoping to spend $47,727 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: 71/17/12 Blend
39$688,000$688,000$688,000$688,000
40$765,144$728,680$718,016$817,067
41$792,407$713,604$691,288$837,291
42$820,852$696,190$662,066$852,952
43$850,548$676,272$630,214$868,825
44$881,571$653,677$595,593$884,919
45$914,003$628,219$558,057$901,248
46$947,933$599,702$517,453$917,828
47$983,455$567,921$473,621$934,675
48$1,020,673$532,655$426,393$951,813
49$1,059,700$493,674$375,596$969,266
50$1,100,658$450,732$321,047$987,063
51$1,143,680$403,572$262,556$1,005,239
52$1,188,908$351,920$199,925$1,023,832
53$1,236,499$295,487$132,945$1,042,889
54$1,286,624$233,967$61,400$1,062,461
55$1,339,467$167,040$0$1,082,607
56$1,395,232$94,363$0$1,105,311
57$1,454,137$15,579$0$1,137,250
58$1,516,423$0$0$1,170,674
59$1,582,352$0$0$1,218,754
60$1,652,210$0$0$1,272,805
61$1,726,311$0$0$1,330,155
62$1,804,995$0$0$1,391,072
63$1,888,637$0$0$1,455,847
64$1,977,645$0$0$1,524,801
65$2,072,469$0$0$1,598,282
66$2,173,597$0$0$1,676,674
67$2,281,566$0$0$1,760,396
68$2,396,966$0$0$1,849,908
69$2,520,441$0$0$1,945,713
70$2,652,698$0$0$2,048,364
71$2,794,514$0$0$2,158,468
72$2,946,739$0$0$2,276,690
73$3,110,307$0$0$2,403,758
74$3,286,244$0$0$2,540,476
75$3,475,675$0$0$2,687,722
76$3,679,836$0$0$2,846,462
77$3,900,085$0$0$3,017,759
78$4,137,914$0$0$3,202,778
79$4,394,963$0$0$3,402,802
80$4,673,032$0$0$3,619,238
81$4,974,102$0$0$3,853,635
82$5,300,351$0$0$4,107,695
83$5,654,173$0$0$4,383,291
84$6,038,199$0$0$4,682,481
85$6,455,327$0$0$5,007,529
86$6,908,740$0$0$5,360,926
87$7,401,942$0$0$5,745,412
88$7,938,790$0$0$6,164,003
89$8,523,524$0$0$6,620,015
90$9,160,813$0$0$7,117,101
91$9,855,794$0$0$7,659,277
92$10,614,121$0$0$8,250,966
93$11,442,018$0$0$8,897,037
94$12,346,336$0$0$9,602,847
95$13,334,618$0$0$10,374,297
96$14,415,166$0$0$11,217,882
97$15,597,123$0$0$12,140,753
98$16,890,556$0$0$13,150,784
99$18,306,548$0$0$14,256,646
100$19,857,306$0$0$15,467,887