Can I retire at age 40 with 689,000?

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 $689,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$56,897$56,390$55,896$55,413$54,942$53,226
2 years$28,167$27,642$27,134$26,641$26,163$24,449
3 years$18,591$18,065$17,557$17,069$16,599$14,941
4 years$13,805$13,279$12,777$12,297$11,838$10,250
5 years$10,933$10,411$9,916$9,446$8,999$7,484
6 years$9,020$8,501$8,013$7,554$7,121$5,680
7 years$7,653$7,140$6,659$6,210$5,791$4,425
8 years$6,629$6,120$5,647$5,210$4,804$3,511
9 years$5,833$5,328$4,864$4,437$4,046$2,825
10 years$5,196$4,697$4,241$3,825$3,447$2,297
11 years$4,676$4,181$3,733$3,329$2,965$1,882
12 years$4,242$3,753$3,313$2,920$2,569$1,552
13 years$3,876$3,392$2,960$2,578$2,240$1,287
14 years$3,562$3,083$2,660$2,288$1,964$1,072
15 years$3,290$2,816$2,401$2,041$1,729$895
16 years$3,053$2,584$2,177$1,827$1,528$750
17 years$2,843$2,380$1,981$1,642$1,355$629
18 years$2,657$2,199$1,809$1,480$1,205$530
19 years$2,491$2,038$1,656$1,337$1,074$446
20 years$2,342$1,894$1,519$1,211$959$376
21 years$2,207$1,764$1,398$1,099$858$318
22 years$2,084$1,647$1,288$999$769$269
23 years$1,973$1,540$1,189$910$691$227
24 years$1,870$1,443$1,100$830$621$192
25 years$1,776$1,354$1,019$758$559$163
26 years$1,690$1,273$945$693$503$138
27 years$1,610$1,198$877$634$454$117
28 years$1,536$1,129$816$581$409$99
29 years$1,467$1,065$759$533$370$84
30 years$1,403$1,005$707$489$334$71
31 years$1,343$950$659$449$302$61
32 years$1,286$899$615$413$273$51
33 years$1,234$852$574$380$247$44
34 years$1,185$807$537$349$224$37
35 years$1,138$766$502$322$203$32
36 years$1,094$727$469$296$184$27
37 years$1,053$690$439$273$166$23
38 years$1,014$656$411$252$151$19
39 years$977$624$385$232$137$16
40 years$942$593$361$214$124$14
41 years$909$565$339$197$113$12
42 years$877$538$318$182$102$10
43 years$847$513$298$168$93$9
44 years$819$489$280$155$84$7
45 years$791$466$263$143$76$6
46 years$765$444$247$132$69$5
47 years$741$424$232$122$63$4
48 years$717$405$218$113$57$4
49 years$694$387$205$104$52$3
50 years$673$369$193$97$47$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $689,000, adding $2,230 every year, while hoping to spend $32,463 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: 81/6/13 Blend
39$689,000$689,000$689,000$689,000
40$761,578$725,061$714,382$821,209
41$804,719$726,049$703,773$861,667
42$851,172$725,997$691,721$901,607
43$901,241$724,820$678,143$944,502
44$955,259$722,428$662,953$990,632
45$1,013,593$718,724$646,059$1,040,307
46$1,076,645$713,608$627,368$1,093,866
47$1,144,858$706,970$606,780$1,151,685
48$1,218,718$698,696$584,192$1,214,176
49$1,298,761$688,665$559,495$1,281,795
50$1,385,573$676,748$532,577$1,355,044
51$1,479,801$662,809$503,318$1,434,476
52$1,582,157$646,703$471,596$1,520,698
53$1,693,424$628,278$437,280$1,614,384
54$1,814,460$607,371$400,237$1,716,273
55$1,946,215$583,811$360,324$1,827,181
56$2,089,728$557,418$317,395$1,948,006
57$2,246,147$527,998$271,294$2,079,739
58$2,416,734$495,350$221,863$2,223,473
59$2,602,878$459,259$168,932$2,380,411
60$2,806,107$419,498$112,326$2,551,880
61$3,028,104$375,827$51,863$2,739,343
62$3,270,721$327,993$0$2,944,412
63$3,535,998$275,729$0$3,170,620
64$3,826,181$218,751$0$3,425,962
65$4,143,743$156,761$0$3,705,423
66$4,491,405$89,442$0$4,011,415
67$4,872,167$16,463$0$4,346,592
68$5,289,329$0$0$4,713,879
69$5,746,528$0$0$5,120,627
70$6,247,768$0$0$5,567,766
71$6,797,461$0$0$6,058,145
72$7,400,463$0$0$6,596,101
73$8,062,126$0$0$7,186,409
74$8,788,344$0$0$7,834,330
75$9,585,608$0$0$8,545,659
76$10,461,069$0$0$9,326,778
77$11,422,606$0$0$10,184,719
78$12,478,897$0$0$11,127,228
79$13,639,502$0$0$12,162,839
80$14,914,953$0$0$13,300,953
81$16,316,852$0$0$14,551,925
82$17,857,984$0$0$15,927,166
83$19,552,431$0$0$17,439,246
84$21,415,709$0$0$19,102,016
85$23,464,912$0$0$20,930,732
86$25,718,875$0$0$22,942,207
87$28,198,350$0$0$25,154,964
88$30,926,200$0$0$27,589,411
89$33,927,616$0$0$30,268,034
90$37,230,356$0$0$33,215,607
91$40,865,002$0$0$36,459,431
92$44,865,252$0$0$40,029,583
93$49,268,236$0$0$43,959,207
94$54,114,866$0$0$48,284,820
95$59,450,223$0$0$53,046,662
96$65,323,979$0$0$58,289,070
97$71,790,868$0$0$64,060,901
98$78,911,200$0$0$70,415,989
99$86,751,433$0$0$77,413,653
100$95,384,795$0$0$85,119,258