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%19.4%
1 years$56,897$56,390$55,896$55,413$54,942$52,866
2 years$28,167$27,642$27,134$26,641$26,163$24,096
3 years$18,591$18,065$17,557$17,069$16,599$14,605
4 years$13,805$13,279$12,777$12,297$11,838$9,934
5 years$10,933$10,411$9,916$9,446$8,999$7,189
6 years$9,020$8,501$8,013$7,554$7,121$5,405
7 years$7,653$7,140$6,659$6,210$5,791$4,170
8 years$6,629$6,120$5,647$5,210$4,804$3,276
9 years$5,833$5,328$4,864$4,437$4,046$2,608
10 years$5,196$4,697$4,241$3,825$3,447$2,098
11 years$4,676$4,181$3,733$3,329$2,965$1,700
12 years$4,242$3,753$3,313$2,920$2,569$1,387
13 years$3,876$3,392$2,960$2,578$2,240$1,136
14 years$3,562$3,083$2,660$2,288$1,964$935
15 years$3,290$2,816$2,401$2,041$1,729$772
16 years$3,053$2,584$2,177$1,827$1,528$638
17 years$2,843$2,380$1,981$1,642$1,355$529
18 years$2,657$2,199$1,809$1,480$1,205$440
19 years$2,491$2,038$1,656$1,337$1,074$366
20 years$2,342$1,894$1,519$1,211$959$305
21 years$2,207$1,764$1,398$1,099$858$254
22 years$2,084$1,647$1,288$999$769$212
23 years$1,973$1,540$1,189$910$691$177
24 years$1,870$1,443$1,100$830$621$148
25 years$1,776$1,354$1,019$758$559$123
26 years$1,690$1,273$945$693$503$103
27 years$1,610$1,198$877$634$454$86
28 years$1,536$1,129$816$581$409$72
29 years$1,467$1,065$759$533$370$60
30 years$1,403$1,005$707$489$334$50
31 years$1,343$950$659$449$302$42
32 years$1,286$899$615$413$273$35
33 years$1,234$852$574$380$247$30
34 years$1,185$807$537$349$224$25
35 years$1,138$766$502$322$203$21
36 years$1,094$727$469$296$184$17
37 years$1,053$690$439$273$166$15
38 years$1,014$656$411$252$151$12
39 years$977$624$385$232$137$10
40 years$942$593$361$214$124$9
41 years$909$565$339$197$113$7
42 years$877$538$318$182$102$6
43 years$847$513$298$168$93$5
44 years$819$489$280$155$84$4
45 years$791$466$263$143$76$4
46 years$765$444$247$132$69$3
47 years$741$424$232$122$63$2
48 years$717$405$218$113$57$2
49 years$694$387$205$104$52$2
50 years$673$369$193$97$47$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $689,000, adding $6,628 every year, while hoping to spend $26,008 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: 79/15/6 Blend
39$689,000$689,000$689,000$689,000
40$766,115$729,598$718,918$825,732
41$816,586$737,676$715,330$873,823
42$871,334$745,278$710,749$922,476
43$930,767$752,353$705,116$975,062
44$995,335$758,848$698,367$1,031,960
45$1,065,531$764,704$690,435$1,093,588
46$1,141,902$769,861$681,251$1,160,405
47$1,225,044$774,252$670,741$1,232,918
48$1,315,616$777,809$658,828$1,311,684
49$1,414,344$780,456$645,434$1,397,317
50$1,522,025$782,116$630,474$1,490,496
51$1,639,537$782,706$613,861$1,591,966
52$1,767,847$782,135$595,502$1,702,549
53$1,908,018$780,311$575,302$1,823,150
54$2,061,222$777,132$553,161$1,954,767
55$2,228,748$772,493$528,973$2,098,499
56$2,412,017$766,281$502,630$2,255,559
57$2,612,590$758,377$474,016$2,427,281
58$2,832,191$748,654$443,012$2,615,137
59$3,072,714$736,977$409,492$2,820,749
60$3,336,247$723,205$373,326$3,045,903
61$3,625,089$707,187$334,377$3,292,568
62$3,941,771$688,763$292,503$3,562,916
63$4,289,084$667,764$247,554$3,859,338
64$4,670,098$644,012$199,374$4,184,472
65$5,088,197$617,317$147,802$4,541,221
66$5,547,106$587,480$92,667$4,932,790
67$6,050,932$554,287$33,792$5,362,707
68$6,604,196$517,516$0$5,834,863
69$7,211,878$476,929$0$6,355,403
70$7,879,467$432,275$0$6,929,625
71$8,613,007$383,292$0$7,560,583
72$9,419,159$329,697$0$8,254,031
73$10,305,258$271,197$0$9,016,309
74$11,279,387$207,479$0$9,854,406
75$12,350,452$138,213$0$10,776,022
76$13,528,263$63,050$0$11,789,644
77$14,823,630$0$0$12,904,625
78$16,248,462$0$0$14,134,304
79$17,815,881$0$0$15,498,512
80$19,540,344$0$0$16,999,428
81$21,437,781$0$0$18,650,920
82$23,525,742$0$0$20,468,268
83$25,823,566$0$0$22,468,305
84$28,352,562$0$0$24,669,583
85$31,136,208$0$0$27,092,541
86$34,200,373$0$0$29,759,701
87$37,573,564$0$0$32,695,878
88$41,287,190$0$0$35,928,417
89$45,375,862$0$0$39,487,448
90$49,877,715$0$0$43,406,171
91$54,834,773$0$0$47,721,171
92$60,293,341$0$0$52,472,760
93$66,304,444$0$0$57,705,357
94$72,924,307$0$0$63,467,911
95$80,214,885$0$0$69,814,359
96$88,244,449$0$0$76,804,135
97$97,088,230$0$0$84,502,732
98$106,829,126$0$0$92,982,321
99$117,558,488$0$0$102,322,428
100$129,376,977$0$0$112,610,686