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%11.1%
1 years$56,814$56,308$55,815$55,333$54,862$54,608
2 years$28,126$27,602$27,094$26,602$26,125$25,868
3 years$18,564$18,038$17,532$17,044$16,575$16,324
4 years$13,785$13,260$12,759$12,279$11,821$11,578
5 years$10,917$10,396$9,901$9,432$8,986$8,751
6 years$9,007$8,489$8,002$7,543$7,111$6,884
7 years$7,642$7,129$6,649$6,201$5,783$5,565
8 years$6,619$6,111$5,639$5,202$4,797$4,588
9 years$5,824$5,321$4,857$4,431$4,040$3,839
10 years$5,189$4,690$4,235$3,820$3,442$3,250
11 years$4,669$4,175$3,728$3,324$2,961$2,777
12 years$4,236$3,747$3,309$2,916$2,566$2,390
13 years$3,870$3,387$2,956$2,574$2,237$2,069
14 years$3,557$3,078$2,656$2,285$1,961$1,801
15 years$3,285$2,812$2,398$2,038$1,727$1,575
16 years$3,048$2,580$2,174$1,825$1,526$1,381
17 years$2,839$2,376$1,978$1,639$1,353$1,216
18 years$2,653$2,196$1,806$1,477$1,203$1,073
19 years$2,487$2,035$1,653$1,335$1,072$949
20 years$2,338$1,891$1,517$1,209$958$841
21 years$2,204$1,761$1,396$1,097$857$746
22 years$2,081$1,644$1,286$998$768$664
23 years$1,970$1,538$1,188$909$690$591
24 years$1,868$1,441$1,098$829$620$527
25 years$1,774$1,352$1,017$757$558$470
26 years$1,687$1,271$944$692$502$420
27 years$1,607$1,196$876$633$453$375
28 years$1,533$1,127$814$580$409$336
29 years$1,465$1,063$758$532$369$301
30 years$1,400$1,004$706$488$334$269
31 years$1,341$949$658$449$302$241
32 years$1,285$898$614$412$273$216
33 years$1,232$850$573$379$247$194
34 years$1,183$806$536$349$223$174
35 years$1,136$765$501$321$202$156
36 years$1,093$726$469$296$183$140
37 years$1,051$689$439$272$166$126
38 years$1,012$655$411$251$151$113
39 years$976$623$385$232$137$102
40 years$941$593$361$214$124$91
41 years$907$564$338$197$112$82
42 years$876$537$317$182$102$74
43 years$846$512$298$168$93$66
44 years$817$488$279$155$84$60
45 years$790$465$262$143$76$54
46 years$764$444$246$132$69$48
47 years$740$424$232$122$63$43
48 years$716$404$218$113$57$39
49 years$693$386$204$104$52$35
50 years$672$369$192$96$47$32

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $688,000, adding $3,510 every year, while hoping to spend $33,420 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: 88/7/5 Blend
39$688,000$688,000$688,000$688,000
40$761,797$725,333$714,669$828,608
41$803,941$725,315$703,051$872,593
42$849,264$724,177$689,925$915,890
43$898,055$721,828$675,203$962,382
44$950,631$718,171$658,797$1,012,365
45$1,007,340$713,106$640,611$1,066,164
46$1,068,566$706,525$620,548$1,124,138
47$1,134,728$698,314$598,506$1,186,682
48$1,206,290$688,351$574,375$1,254,230
49$1,283,760$676,508$548,045$1,327,258
50$1,367,696$662,649$519,397$1,406,294
51$1,458,712$646,631$488,308$1,491,916
52$1,557,485$628,300$454,651$1,584,762
53$1,664,757$607,496$418,290$1,685,533
54$1,781,346$584,047$379,087$1,795,003
55$1,908,151$557,772$336,893$1,914,022
56$2,046,161$528,481$291,557$2,043,529
57$2,196,464$495,971$242,919$2,184,555
58$2,360,258$460,029$190,812$2,338,239
59$2,538,861$420,428$135,061$2,505,833
60$2,733,725$376,928$75,486$2,688,717
61$2,946,445$329,278$11,895$2,888,411
62$3,178,781$277,210$0$3,106,591
63$3,432,666$220,443$0$3,348,087
64$3,710,231$158,678$0$3,612,819
65$4,013,822$91,601$0$3,902,403
66$4,346,021$18,879$0$4,219,319
67$4,709,673$0$0$4,566,298
68$5,107,908$0$0$4,950,961
69$5,544,176$0$0$5,373,958
70$6,022,274$0$0$5,837,517
71$6,546,384$0$0$6,345,695
72$7,121,113$0$0$6,902,959
73$7,751,536$0$0$7,514,228
74$8,443,239$0$0$8,184,923
75$9,202,379$0$0$8,921,013
76$10,035,737$0$0$9,729,072
77$10,950,780$0$0$10,616,344
78$11,955,737$0$0$11,590,808
79$13,059,670$0$0$12,661,252
80$14,272,565$0$0$13,837,358
81$15,605,421$0$0$15,129,795
82$17,070,355$0$0$16,550,313
83$18,680,718$0$0$18,111,857
84$20,451,217$0$0$19,828,692
85$22,398,056$0$0$21,716,530
86$24,539,089$0$0$23,792,686
87$26,893,985$0$0$26,076,233
88$29,484,415$0$0$28,588,187
89$32,334,258$0$0$31,351,705
90$35,469,821$0$0$34,392,298
91$38,920,091$0$0$37,738,078
92$42,717,008$0$0$41,420,016
93$46,895,764$0$0$45,472,241
94$51,495,133$0$0$49,932,356
95$56,557,842$0$0$54,841,794
96$62,130,969$0$0$60,246,208
97$68,266,388$0$0$66,195,906
98$75,021,259$0$0$72,746,317
99$82,458,565$0$0$79,958,520
100$90,647,708$0$0$87,899,819