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%12.3%
1 years$58,053$57,536$57,031$56,539$56,058$55,519
2 years$28,739$28,204$27,685$27,182$26,694$26,151
3 years$18,969$18,432$17,914$17,416$16,936$16,406
4 years$14,085$13,549$13,037$12,547$12,079$11,566
5 years$11,155$10,623$10,117$9,637$9,182$8,687
6 years$9,203$8,674$8,176$7,707$7,266$6,790
7 years$7,809$7,285$6,794$6,336$5,909$5,452
8 years$6,764$6,244$5,762$5,316$4,902$4,465
9 years$5,951$5,437$4,963$4,528$4,128$3,710
10 years$5,302$4,792$4,327$3,903$3,517$3,118
11 years$4,771$4,266$3,809$3,397$3,025$2,644
12 years$4,328$3,829$3,381$2,979$2,621$2,259
13 years$3,954$3,460$3,020$2,630$2,286$1,941
14 years$3,634$3,145$2,714$2,335$2,004$1,676
15 years$3,357$2,873$2,450$2,082$1,764$1,454
16 years$3,115$2,636$2,221$1,864$1,559$1,265
17 years$2,901$2,428$2,021$1,675$1,383$1,104
18 years$2,711$2,244$1,845$1,510$1,229$966
19 years$2,542$2,079$1,689$1,364$1,096$847
20 years$2,389$1,932$1,550$1,236$979$744
21 years$2,252$1,800$1,426$1,121$876$655
22 years$2,127$1,680$1,314$1,020$785$577
23 years$2,013$1,571$1,214$928$705$509
24 years$1,908$1,472$1,122$847$633$450
25 years$1,812$1,382$1,039$773$570$398
26 years$1,724$1,298$964$707$513$352
27 years$1,643$1,222$895$647$463$312
28 years$1,567$1,151$832$593$418$276
29 years$1,497$1,086$774$544$377$245
30 years$1,431$1,026$721$499$341$217
31 years$1,370$970$673$458$308$193
32 years$1,313$918$627$421$279$171
33 years$1,259$869$586$387$252$152
34 years$1,209$824$547$356$228$135
35 years$1,161$781$512$328$207$120
36 years$1,117$741$479$302$187$107
37 years$1,074$704$448$278$170$95
38 years$1,035$669$420$257$154$84
39 years$997$636$393$237$140$75
40 years$961$605$369$218$127$67
41 years$927$576$346$201$115$59
42 years$895$549$324$186$104$53
43 years$864$523$304$172$95$47
44 years$835$499$286$158$86$42
45 years$807$475$268$146$78$37
46 years$781$454$252$135$71$33
47 years$756$433$237$125$64$29
48 years$732$413$222$115$58$26
49 years$708$395$209$107$53$23
50 years$686$377$196$99$48$21

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $703,000, adding $6,477 every year, while hoping to spend $57,770 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: 74/13/13 Blend
39$703,000$703,000$703,000$703,000
40$781,387$744,128$733,232$836,620
41$799,622$719,123$696,328$848,996
42$817,780$690,957$656,252$854,746
43$835,793$659,414$612,836$859,473
44$853,584$624,265$565,906$863,059
45$871,064$585,269$515,278$865,377
46$888,135$542,170$460,763$866,286
47$904,687$494,698$402,160$865,631
48$920,595$442,567$339,262$863,244
49$935,719$385,477$271,851$858,943
50$949,905$323,108$199,701$852,526
51$962,978$255,123$122,573$843,774
52$974,744$181,167$40,222$832,447
53$984,987$100,863$0$818,283
54$993,466$13,815$0$807,606
55$999,912$0$0$799,876
56$1,004,026$0$0$800,703
57$1,005,477$0$0$801,317
58$1,003,896$0$0$799,441
59$998,872$0$0$794,739
60$989,953$0$0$786,841
61$976,634$0$0$775,336
62$958,356$0$0$759,766
63$934,500$0$0$739,626
64$904,379$0$0$714,357
65$867,236$0$0$683,338
66$822,227$0$0$645,883
67$768,424$0$0$601,231
68$704,796$0$0$548,544
69$630,205$0$0$486,891
70$543,391$0$0$415,245
71$442,963$0$0$332,470
72$327,382$0$0$237,310
73$194,948$0$0$128,378
74$43,782$0$0$4,141
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0