Can I retire at age 40 with 701,000?

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 $701,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.3%
1 years$57,888$57,372$56,869$56,378$55,899$54,681
2 years$28,657$28,124$27,606$27,105$26,618$25,397
3 years$18,915$18,379$17,863$17,366$16,888$15,702
4 years$14,045$13,511$13,000$12,511$12,045$10,903
5 years$11,124$10,592$10,088$9,610$9,156$8,062
6 years$9,177$8,650$8,153$7,685$7,245$6,199
7 years$7,787$7,264$6,775$6,318$5,892$4,895
8 years$6,745$6,226$5,746$5,300$4,888$3,940
9 years$5,934$5,421$4,949$4,515$4,116$3,216
10 years$5,287$4,779$4,315$3,892$3,507$2,654
11 years$4,757$4,254$3,798$3,387$3,016$2,209
12 years$4,316$3,818$3,371$2,971$2,614$1,851
13 years$3,943$3,451$3,012$2,623$2,279$1,559
14 years$3,624$3,136$2,706$2,328$1,998$1,320
15 years$3,347$2,865$2,443$2,076$1,759$1,121
16 years$3,106$2,629$2,215$1,859$1,555$955
17 years$2,893$2,421$2,016$1,670$1,379$816
18 years$2,703$2,237$1,840$1,505$1,226$699
19 years$2,534$2,073$1,685$1,360$1,093$600
20 years$2,382$1,927$1,546$1,232$976$515
21 years$2,245$1,795$1,422$1,118$873$443
22 years$2,121$1,675$1,311$1,017$783$382
23 years$2,007$1,567$1,210$926$703$329
24 years$1,903$1,468$1,119$844$632$284
25 years$1,807$1,378$1,037$771$568$245
26 years$1,719$1,295$961$705$512$212
27 years$1,638$1,219$893$645$462$183
28 years$1,562$1,148$830$591$417$158
29 years$1,492$1,083$772$542$376$137
30 years$1,427$1,023$719$498$340$119
31 years$1,366$967$671$457$307$103
32 years$1,309$915$626$420$278$89
33 years$1,255$867$584$386$252$77
34 years$1,205$821$546$355$228$67
35 years$1,158$779$510$327$206$58
36 years$1,113$739$477$301$187$50
37 years$1,071$702$447$278$169$43
38 years$1,032$667$418$256$154$38
39 years$994$635$392$236$139$33
40 years$958$604$367$218$126$28
41 years$925$575$345$201$115$24
42 years$892$547$323$185$104$21
43 years$862$522$303$171$94$18
44 years$833$497$285$158$86$16
45 years$805$474$267$146$78$14
46 years$779$452$251$135$71$12
47 years$754$432$236$124$64$10
48 years$729$412$222$115$58$9
49 years$706$393$208$106$53$8
50 years$684$376$196$98$48$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $701,000, adding $4,190 every year, while hoping to spend $29,717 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: 42/34/24 Blend
39$701,000$701,000$701,000$701,000
40$776,824$739,671$728,805$803,837
41$824,441$744,296$721,602$828,167
42$875,920$748,152$713,161$851,342
43$931,622$751,170$703,410$875,850
44$991,945$753,275$692,272$901,830
45$1,057,329$754,391$679,668$929,438
46$1,128,254$754,434$665,515$958,845
47$1,205,250$753,315$649,724$990,245
48$1,288,901$750,943$632,205$1,023,852
49$1,379,846$747,216$612,861$1,059,901
50$1,478,791$742,031$591,593$1,098,658
51$1,586,512$735,275$568,296$1,140,417
52$1,703,863$726,829$542,860$1,185,501
53$1,831,782$716,569$515,171$1,234,275
54$1,971,304$704,361$485,109$1,287,138
55$2,123,566$690,064$452,550$1,344,537
56$2,289,822$673,529$417,362$1,406,965
57$2,471,450$654,598$379,410$1,474,972
58$2,669,968$633,104$338,550$1,549,163
59$2,887,048$608,869$294,634$1,630,214
60$3,124,529$581,705$247,507$1,718,869
61$3,384,437$551,416$197,005$1,815,957
62$3,669,005$517,790$142,959$1,922,393
63$3,980,687$480,606$85,193$2,039,190
64$4,322,191$439,629$23,521$2,167,473
65$4,696,496$394,612$0$2,308,484
66$5,106,884$345,293$0$2,474,430
67$5,556,968$291,394$0$2,663,133
68$6,050,730$232,624$0$2,870,302
69$6,592,554$168,673$0$3,097,856
70$7,187,272$99,214$0$3,347,914
71$7,840,202$23,904$0$3,622,814
72$8,557,205$0$0$3,925,139
73$9,344,738$0$0$4,279,298
74$10,209,913$0$0$4,678,292
75$11,160,563$0$0$5,116,802
76$12,205,321$0$0$5,598,822
77$13,353,695$0$0$6,128,752
78$14,616,162$0$0$6,711,438
79$16,004,262$0$0$7,352,220
80$17,530,712$0$0$8,056,984
81$19,209,521$0$0$8,832,211
82$21,056,125$0$0$9,685,043
83$23,087,531$0$0$10,623,351
84$25,322,476$0$0$11,655,805
85$27,781,606$0$0$12,791,958
86$30,487,669$0$0$14,042,338
87$33,465,728$0$0$15,418,543
88$36,743,402$0$0$16,933,353
89$40,351,120$0$0$18,600,851
90$44,322,411$0$0$20,436,553
91$48,694,222$0$0$22,457,557
92$53,507,262$0$0$24,682,702
93$58,806,388$0$0$27,132,747
94$64,641,028$0$0$29,830,568
95$71,065,649$0$0$32,801,371
96$78,140,264$0$0$36,072,930
97$85,931,006$0$0$39,675,852
98$94,510,748$0$0$43,643,861
99$103,959,789$0$0$48,014,122
100$114,366,614$0$0$52,827,584