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%17.9%
1 years$57,805$57,290$56,788$56,298$55,819$54,032
2 years$28,617$28,084$27,567$27,066$26,580$24,797
3 years$18,888$18,353$17,838$17,342$16,864$15,139
4 years$14,025$13,491$12,981$12,494$12,027$10,375
5 years$11,108$10,577$10,074$9,596$9,143$7,567
6 years$9,164$8,637$8,141$7,674$7,235$5,737
7 years$7,776$7,254$6,765$6,309$5,884$4,464
8 years$6,735$6,218$5,738$5,293$4,881$3,538
9 years$5,926$5,414$4,942$4,508$4,111$2,843
10 years$5,279$4,772$4,308$3,886$3,502$2,308
11 years$4,750$4,248$3,793$3,382$3,012$1,890
12 years$4,310$3,813$3,366$2,967$2,610$1,556
13 years$3,938$3,446$3,008$2,619$2,276$1,289
14 years$3,619$3,132$2,702$2,325$1,995$1,071
15 years$3,343$2,861$2,440$2,073$1,757$894
16 years$3,101$2,625$2,212$1,857$1,553$748
17 years$2,889$2,418$2,013$1,668$1,377$627
18 years$2,700$2,234$1,837$1,503$1,224$526
19 years$2,531$2,070$1,682$1,358$1,091$443
20 years$2,379$1,924$1,544$1,230$975$373
21 years$2,242$1,792$1,420$1,117$872$314
22 years$2,117$1,673$1,309$1,015$782$265
23 years$2,004$1,565$1,208$925$702$224
24 years$1,900$1,466$1,118$843$631$189
25 years$1,805$1,376$1,035$770$568$160
26 years$1,717$1,293$960$704$511$136
27 years$1,635$1,217$891$645$461$115
28 years$1,560$1,147$829$591$416$97
29 years$1,490$1,082$771$542$376$82
30 years$1,425$1,021$718$497$339$70
31 years$1,364$966$670$456$307$59
32 years$1,307$914$625$419$278$50
33 years$1,254$865$583$386$251$42
34 years$1,203$820$545$355$227$36
35 years$1,156$778$510$327$206$30
36 years$1,112$738$477$301$187$26
37 years$1,070$701$446$277$169$22
38 years$1,030$666$418$256$153$19
39 years$993$634$391$236$139$16
40 years$957$603$367$217$126$13
41 years$923$574$344$201$114$11
42 years$891$547$323$185$104$10
43 years$861$521$303$171$94$8
44 years$832$496$284$158$86$7
45 years$804$473$267$146$78$6
46 years$778$452$251$135$70$5
47 years$753$431$236$124$64$4
48 years$728$411$221$115$58$4
49 years$705$393$208$106$53$3
50 years$683$375$196$98$48$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $700,000, adding $4,014 every year, while hoping to spend $24,274 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: 56/37/7 Blend
39$700,000$700,000$700,000$700,000
40$775,540$738,440$727,590$817,529
41$828,818$748,797$726,137$856,647
42$886,717$758,847$723,822$896,174
43$949,682$768,550$720,590$938,628
44$1,018,204$777,863$716,384$984,292
45$1,092,822$786,740$711,144$1,033,476
46$1,174,130$795,131$704,808$1,086,523
47$1,262,782$802,983$697,309$1,143,810
48$1,359,496$810,239$688,580$1,205,755
49$1,465,064$816,840$678,547$1,272,818
50$1,580,357$822,722$667,135$1,345,506
51$1,706,335$827,817$654,265$1,424,380
52$1,844,053$832,052$639,855$1,510,056
53$1,994,674$835,351$623,818$1,603,216
54$2,159,478$837,630$606,063$1,704,612
55$2,339,875$838,804$586,496$1,815,072
56$2,537,416$838,779$565,018$1,935,513
57$2,753,811$837,457$541,524$2,066,942
58$2,990,942$834,735$515,907$2,210,474
59$3,250,881$830,500$488,054$2,367,337
60$3,535,913$824,637$457,845$2,538,884
61$3,848,552$817,019$425,159$2,726,612
62$4,191,566$807,516$389,864$2,932,169
63$4,568,008$795,986$351,826$3,157,373
64$4,981,238$782,282$310,905$3,404,231
65$5,434,956$766,246$266,953$3,674,955
66$5,933,241$747,712$219,815$3,971,985
67$6,480,585$726,503$169,332$4,298,015
68$7,081,936$702,433$115,336$4,656,013
69$7,742,744$675,303$57,651$5,049,254
70$8,469,017$644,906$0$5,481,351
71$9,267,369$611,019$0$5,956,578
72$10,145,091$573,409$0$6,483,650
73$11,110,212$531,828$0$7,063,118
74$12,171,581$486,014$0$7,700,340
75$13,338,946$435,692$0$8,401,225
76$14,623,046$380,569$0$9,172,286
77$16,035,716$320,336$0$10,020,707
78$17,589,993$254,667$0$10,954,408
79$19,300,244$183,217$0$11,982,119
80$21,182,296$105,622$0$13,113,468
81$23,253,591$21,498$0$14,359,069
82$25,533,345$0$0$15,730,622
83$28,042,732$0$0$17,269,352
84$30,805,083$0$0$18,972,908
85$33,846,108$0$0$20,848,403
86$37,194,132$0$0$22,913,317
87$40,880,370$0$0$25,186,910
88$44,939,216$0$0$27,690,408
89$49,408,570$0$0$30,447,197
90$54,330,192$0$0$33,483,049
91$59,750,101$0$0$36,826,359
92$65,719,006$0$0$40,508,421
93$72,292,782$0$0$44,563,714
94$79,533,001$0$0$49,030,236
95$87,507,514$0$0$53,949,856
96$96,291,084$0$0$59,368,710
97$105,966,100$0$0$65,337,640
98$116,623,346$0$0$71,912,671
99$128,362,866$0$0$79,155,539
100$141,294,901$0$0$87,134,275