Can I retire at age 40 with 703,000?

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 $703,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.5%
1 years$58,053$57,536$57,031$56,539$56,058$55,243
2 years$28,739$28,204$27,685$27,182$26,694$25,875
3 years$18,969$18,432$17,914$17,416$16,936$16,138
4 years$14,085$13,549$13,037$12,547$12,079$11,308
5 years$11,155$10,623$10,117$9,637$9,182$8,441
6 years$9,203$8,674$8,176$7,707$7,266$6,554
7 years$7,809$7,285$6,794$6,336$5,909$5,228
8 years$6,764$6,244$5,762$5,316$4,902$4,252
9 years$5,951$5,437$4,963$4,528$4,128$3,508
10 years$5,302$4,792$4,327$3,903$3,517$2,927
11 years$4,771$4,266$3,809$3,397$3,025$2,464
12 years$4,328$3,829$3,381$2,979$2,621$2,089
13 years$3,954$3,460$3,020$2,630$2,286$1,781
14 years$3,634$3,145$2,714$2,335$2,004$1,526
15 years$3,357$2,873$2,450$2,082$1,764$1,312
16 years$3,115$2,636$2,221$1,864$1,559$1,133
17 years$2,901$2,428$2,021$1,675$1,383$980
18 years$2,711$2,244$1,845$1,510$1,229$850
19 years$2,542$2,079$1,689$1,364$1,096$739
20 years$2,389$1,932$1,550$1,236$979$644
21 years$2,252$1,800$1,426$1,121$876$561
22 years$2,127$1,680$1,314$1,020$785$490
23 years$2,013$1,571$1,214$928$705$429
24 years$1,908$1,472$1,122$847$633$375
25 years$1,812$1,382$1,039$773$570$328
26 years$1,724$1,298$964$707$513$288
27 years$1,643$1,222$895$647$463$252
28 years$1,567$1,151$832$593$418$222
29 years$1,497$1,086$774$544$377$194
30 years$1,431$1,026$721$499$341$171
31 years$1,370$970$673$458$308$150
32 years$1,313$918$627$421$279$132
33 years$1,259$869$586$387$252$116
34 years$1,209$824$547$356$228$102
35 years$1,161$781$512$328$207$90
36 years$1,117$741$479$302$187$79
37 years$1,074$704$448$278$170$69
38 years$1,035$669$420$257$154$61
39 years$997$636$393$237$140$54
40 years$961$605$369$218$127$47
41 years$927$576$346$201$115$42
42 years$895$549$324$186$104$37
43 years$864$523$304$172$95$32
44 years$835$499$286$158$86$28
45 years$807$475$268$146$78$25
46 years$781$454$252$135$71$22
47 years$756$433$237$125$64$19
48 years$732$413$222$115$58$17
49 years$708$395$209$107$53$15
50 years$686$377$196$99$48$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $703,000, adding $5,286 every year, while hoping to spend $40,205 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: 47/29/24 Blend
39$703,000$703,000$703,000$703,000
40$780,159$742,900$732,003$811,256
41$816,957$736,524$713,747$827,233
42$856,161$728,488$693,533$840,174
43$897,974$718,669$671,251$853,415
44$942,619$706,935$646,789$867,001
45$990,338$693,146$620,028$880,989
46$1,041,399$677,157$590,846$895,440
47$1,096,095$658,811$559,112$910,427
48$1,154,747$637,943$524,692$926,033
49$1,217,707$614,378$487,445$942,353
50$1,285,361$587,931$447,224$959,493
51$1,358,136$558,407$403,873$977,577
52$1,436,496$525,599$357,233$996,742
53$1,520,953$489,288$307,135$1,017,147
54$1,612,070$449,243$253,403$1,038,967
55$1,710,464$405,219$195,855$1,062,404
56$1,816,814$356,957$134,299$1,087,683
57$1,931,866$304,185$68,535$1,115,058
58$2,056,440$246,614$0$1,144,814
59$2,191,437$183,939$0$1,177,693
60$2,337,850$115,838$0$1,232,390
61$2,496,767$41,971$0$1,291,797
62$2,669,389$0$0$1,356,424
63$2,857,033$0$0$1,438,973
64$3,061,151$0$0$1,543,409
65$3,283,339$0$0$1,657,164
66$3,525,354$0$0$1,781,145
67$3,789,129$0$0$1,916,354
68$4,076,790$0$0$2,063,891
69$4,390,679$0$0$2,224,966
70$4,733,375$0$0$2,400,913
71$5,107,712$0$0$2,593,201
72$5,516,816$0$0$2,803,445
73$5,964,124$0$0$3,033,425
74$6,453,421$0$0$3,285,099
75$6,988,878$0$0$3,560,626
76$7,575,083$0$0$3,862,380
77$8,217,091$0$0$4,192,979
78$8,920,468$0$0$4,555,302
79$9,691,345$0$0$4,952,523
80$10,536,472$0$0$5,388,138
81$11,463,285$0$0$5,865,994
82$12,479,975$0$0$6,390,332
83$13,595,561$0$0$6,965,822
84$14,819,979$0$0$7,597,608
85$16,164,175$0$0$8,291,356
86$17,640,204$0$0$9,053,308
87$19,261,348$0$0$9,890,340
88$21,042,236$0$0$10,810,028
89$22,998,986$0$0$11,820,717
90$25,149,354$0$0$12,931,600
91$27,512,900$0$0$14,152,806
92$30,111,175$0$0$15,495,493
93$32,967,920$0$0$16,971,957
94$36,109,294$0$0$18,595,742
95$39,564,115$0$0$20,381,770
96$43,364,135$0$0$22,346,486
97$47,544,339$0$0$24,508,004
98$52,143,271$0$0$26,886,286
99$57,203,400$0$0$29,503,324
100$62,771,521$0$0$32,383,351