Can I retire at age 40 with 700,000?

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 $700,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$57,805$57,290$56,788$56,298$55,819$55,030
2 years$28,617$28,084$27,567$27,066$26,580$25,787
3 years$18,888$18,353$17,838$17,342$16,864$16,091
4 years$14,025$13,491$12,981$12,494$12,027$11,281
5 years$11,108$10,577$10,074$9,596$9,143$8,425
6 years$9,164$8,637$8,141$7,674$7,235$6,546
7 years$7,776$7,254$6,765$6,309$5,884$5,224
8 years$6,735$6,218$5,738$5,293$4,881$4,251
9 years$5,926$5,414$4,942$4,508$4,111$3,510
10 years$5,279$4,772$4,308$3,886$3,502$2,930
11 years$4,750$4,248$3,793$3,382$3,012$2,468
12 years$4,310$3,813$3,366$2,967$2,610$2,094
13 years$3,938$3,446$3,008$2,619$2,276$1,786
14 years$3,619$3,132$2,702$2,325$1,995$1,531
15 years$3,343$2,861$2,440$2,073$1,757$1,318
16 years$3,101$2,625$2,212$1,857$1,553$1,138
17 years$2,889$2,418$2,013$1,668$1,377$986
18 years$2,700$2,234$1,837$1,503$1,224$856
19 years$2,531$2,070$1,682$1,358$1,091$744
20 years$2,379$1,924$1,544$1,230$975$649
21 years$2,242$1,792$1,420$1,117$872$566
22 years$2,117$1,673$1,309$1,015$782$495
23 years$2,004$1,565$1,208$925$702$433
24 years$1,900$1,466$1,118$843$631$379
25 years$1,805$1,376$1,035$770$568$332
26 years$1,717$1,293$960$704$511$291
27 years$1,635$1,217$891$645$461$256
28 years$1,560$1,147$829$591$416$225
29 years$1,490$1,082$771$542$376$197
30 years$1,425$1,021$718$497$339$174
31 years$1,364$966$670$456$307$153
32 years$1,307$914$625$419$278$134
33 years$1,254$865$583$386$251$118
34 years$1,203$820$545$355$227$104
35 years$1,156$778$510$327$206$92
36 years$1,112$738$477$301$187$81
37 years$1,070$701$446$277$169$71
38 years$1,030$666$418$256$153$63
39 years$993$634$391$236$139$55
40 years$957$603$367$217$126$49
41 years$923$574$344$201$114$43
42 years$891$547$323$185$104$38
43 years$861$521$303$171$94$33
44 years$832$496$284$158$86$29
45 years$804$473$267$146$78$26
46 years$778$452$251$135$70$23
47 years$753$431$236$124$64$20
48 years$728$411$221$115$58$18
49 years$705$393$208$106$53$16
50 years$683$375$196$98$48$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $700,000, adding $4,324 every year, while hoping to spend $37,556 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: 65/11/24 Blend
39$700,000$700,000$700,000$700,000
40$775,860$738,760$727,910$821,189
41$815,039$735,000$712,336$848,498
42$856,955$729,797$694,981$873,717
43$901,848$723,041$675,747$900,427
44$949,980$714,614$654,529$928,776
45$1,001,641$704,393$631,218$958,930
46$1,057,147$692,246$605,702$991,071
47$1,116,844$678,035$577,861$1,025,404
48$1,181,114$661,610$547,571$1,062,153
49$1,250,375$642,817$514,703$1,101,568
50$1,325,088$621,490$479,120$1,143,927
51$1,405,758$597,454$440,682$1,189,536
52$1,492,940$570,523$399,239$1,238,734
53$1,587,244$540,503$354,637$1,291,898
54$1,689,340$507,185$306,715$1,349,444
55$1,799,967$470,351$255,304$1,411,834
56$1,919,935$429,770$200,228$1,479,578
57$2,050,134$385,195$141,302$1,553,240
58$2,191,547$336,368$78,335$1,633,447
59$2,345,251$283,017$11,125$1,720,888
60$2,512,434$224,851$0$1,816,330
61$2,694,400$161,567$0$1,936,136
62$2,892,586$92,841$0$2,069,772
63$3,108,572$18,333$0$2,215,480
64$3,344,099$0$0$2,374,462
65$3,601,081$0$0$2,555,591
66$3,881,626$0$0$2,755,793
67$4,188,052$0$0$2,974,511
68$4,522,916$0$0$3,213,574
69$4,889,027$0$0$3,474,994
70$5,289,482$0$0$3,760,989
71$5,727,689$0$0$4,073,999
72$6,207,402$0$0$4,416,712
73$6,732,753$0$0$4,792,087
74$7,308,295$0$0$5,203,384
75$7,939,039$0$0$5,654,192
76$8,630,505$0$0$6,148,465
77$9,388,774$0$0$6,690,556
78$10,220,543$0$0$7,285,261
79$11,133,186$0$0$7,937,862
80$12,134,829$0$0$8,654,179
81$13,234,420$0$0$9,440,619
82$14,441,817$0$0$10,304,243
83$15,767,880$0$0$11,252,828
84$17,224,570$0$0$12,294,941
85$18,825,067$0$0$13,440,022
86$20,583,887$0$0$14,698,467
87$22,517,024$0$0$16,081,731
88$24,642,100$0$0$17,602,436
89$26,978,525$0$0$19,274,483
90$29,547,689$0$0$21,113,193
91$32,373,154$0$0$23,135,441
92$35,480,882$0$0$25,359,823
93$38,899,476$0$0$27,806,826
94$42,660,453$0$0$30,499,022
95$46,798,536$0$0$33,461,283
96$51,351,985$0$0$36,721,013
97$56,362,956$0$0$40,308,405
98$61,877,898$0$0$44,256,730
99$67,947,990$0$0$48,602,645
100$74,629,626$0$0$53,386,543