Can I retire at age 40 with 694,000?

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 $694,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.2%
1 years$57,310$56,799$56,301$55,815$55,341$54,604
2 years$28,371$27,843$27,331$26,834$26,353$25,612
3 years$18,726$18,196$17,685$17,193$16,719$15,997
4 years$13,905$13,376$12,870$12,387$11,924$11,226
5 years$11,013$10,487$9,988$9,514$9,065$8,393
6 years$9,085$8,563$8,072$7,608$7,173$6,528
7 years$7,709$7,191$6,707$6,255$5,833$5,216
8 years$6,677$6,164$5,688$5,247$4,839$4,249
9 years$5,875$5,367$4,899$4,470$4,075$3,512
10 years$5,234$4,731$4,271$3,853$3,472$2,936
11 years$4,710$4,212$3,761$3,353$2,986$2,476
12 years$4,273$3,780$3,337$2,941$2,588$2,103
13 years$3,904$3,416$2,982$2,597$2,257$1,797
14 years$3,588$3,105$2,679$2,305$1,978$1,542
15 years$3,314$2,837$2,419$2,056$1,742$1,329
16 years$3,075$2,603$2,193$1,841$1,539$1,150
17 years$2,864$2,397$1,996$1,654$1,365$997
18 years$2,676$2,215$1,822$1,490$1,214$867
19 years$2,509$2,053$1,668$1,347$1,082$755
20 years$2,359$1,907$1,531$1,220$966$659
21 years$2,223$1,777$1,408$1,107$865$576
22 years$2,099$1,658$1,297$1,006$775$504
23 years$1,987$1,551$1,198$917$696$442
24 years$1,884$1,453$1,108$836$625$387
25 years$1,789$1,364$1,026$763$563$340
26 years$1,702$1,282$952$698$507$299
27 years$1,621$1,206$884$639$457$263
28 years$1,547$1,137$822$585$412$231
29 years$1,477$1,072$765$537$372$203
30 years$1,413$1,013$712$493$336$179
31 years$1,352$957$664$453$304$158
32 years$1,296$906$619$416$275$139
33 years$1,243$858$578$382$249$123
34 years$1,193$813$540$352$225$108
35 years$1,146$771$505$324$204$95
36 years$1,102$732$473$298$185$84
37 years$1,061$695$442$275$168$74
38 years$1,021$661$414$253$152$65
39 years$984$628$388$234$138$58
40 years$949$598$364$215$125$51
41 years$915$569$341$199$113$45
42 years$884$542$320$183$103$40
43 years$853$516$300$169$93$35
44 years$825$492$282$156$85$31
45 years$797$469$265$144$77$27
46 years$771$448$249$133$70$24
47 years$746$427$234$123$63$21
48 years$722$408$219$114$58$19
49 years$699$389$206$105$52$17
50 years$678$372$194$97$48$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $694,000, adding $6,314 every year, while hoping to spend $42,718 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: 56/14/30 Blend
39$694,000$694,000$694,000$694,000
40$771,301$734,519$723,762$807,777
41$804,522$725,059$702,556$824,161
42$839,700$713,703$679,209$837,069
43$876,989$700,315$653,602$850,285
44$916,558$684,746$625,614$863,853
45$958,593$666,844$595,117$877,825
46$1,003,293$646,444$561,978$892,260
47$1,050,882$623,372$526,057$907,225
48$1,101,599$597,445$487,208$922,799
49$1,155,712$568,469$445,278$939,069
50$1,213,508$536,238$400,109$956,134
51$1,275,308$500,535$351,534$974,108
52$1,341,458$461,130$299,379$993,118
53$1,412,342$417,781$243,464$1,013,308
54$1,488,379$370,230$183,598$1,034,841
55$1,570,029$318,207$119,584$1,057,899
56$1,657,797$261,424$51,215$1,082,690
57$1,752,238$199,579$0$1,109,442
58$1,853,960$132,352$0$1,145,378
59$1,963,631$59,406$0$1,201,773
60$2,081,988$0$0$1,262,617
61$2,209,835$0$0$1,331,374
62$2,348,061$0$0$1,415,657
63$2,497,640$0$0$1,506,914
64$2,659,644$0$0$1,605,805
65$2,835,249$0$0$1,713,056
66$3,025,753$0$0$1,829,466
67$3,232,580$0$0$1,955,912
68$3,457,296$0$0$2,093,361
69$3,701,625$0$0$2,242,875
70$3,967,464$0$0$2,405,624
71$4,256,899$0$0$2,582,892
72$4,572,227$0$0$2,776,097
73$4,915,973$0$0$2,986,796
74$5,290,919$0$0$3,216,704
75$5,700,124$0$0$3,467,707
76$6,146,960$0$0$3,741,885
77$6,635,133$0$0$4,041,523
78$7,168,727$0$0$4,369,140
79$7,752,237$0$0$4,727,509
80$8,390,613$0$0$5,119,682
81$9,089,304$0$0$5,549,021
82$9,854,311$0$0$6,019,227
83$10,692,243$0$0$6,534,376
84$11,610,376$0$0$7,098,958
85$12,616,727$0$0$7,717,917
86$13,720,121$0$0$8,396,698
87$14,930,280$0$0$9,141,298
88$16,257,913$0$0$9,958,324
89$17,714,814$0$0$10,855,052
90$19,313,975$0$0$11,839,497
91$21,069,706$0$0$12,920,488
92$22,997,771$0$0$14,107,751
93$25,115,536$0$0$15,412,000
94$27,442,131$0$0$16,845,038
95$29,998,630$0$0$18,419,868
96$32,808,250$0$0$20,150,815
97$35,896,569$0$0$22,053,660
98$39,291,765$0$0$24,145,791
99$43,024,884$0$0$26,446,362
100$47,130,131$0$0$28,976,480