Can I retire at age 40 with 704,000?

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 $704,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17%
1 years$58,136$57,618$57,113$56,619$56,138$54,538
2 years$28,780$28,244$27,725$27,221$26,732$25,133
3 years$18,996$18,458$17,940$17,441$16,960$15,411
4 years$14,105$13,568$13,055$12,565$12,096$10,609
5 years$11,171$10,638$10,132$9,651$9,195$7,775
6 years$9,216$8,687$8,188$7,718$7,276$5,924
7 years$7,820$7,295$6,804$6,345$5,917$4,633
8 years$6,773$6,253$5,770$5,323$4,909$3,692
9 years$5,960$5,444$4,970$4,534$4,134$2,983
10 years$5,309$4,799$4,333$3,908$3,522$2,435
11 years$4,777$4,272$3,815$3,401$3,029$2,005
12 years$4,335$3,835$3,385$2,984$2,625$1,662
13 years$3,960$3,465$3,025$2,634$2,289$1,384
14 years$3,639$3,150$2,718$2,338$2,007$1,158
15 years$3,362$2,877$2,454$2,085$1,767$972
16 years$3,119$2,640$2,225$1,867$1,562$818
17 years$2,905$2,431$2,024$1,678$1,385$691
18 years$2,715$2,247$1,848$1,512$1,231$584
19 years$2,545$2,082$1,692$1,366$1,097$495
20 years$2,393$1,935$1,553$1,237$980$419
21 years$2,255$1,802$1,428$1,123$877$356
22 years$2,130$1,682$1,316$1,021$786$303
23 years$2,015$1,573$1,215$930$706$257
24 years$1,911$1,474$1,124$848$634$219
25 years$1,815$1,384$1,041$774$571$187
26 years$1,727$1,300$965$708$514$159
27 years$1,645$1,224$897$648$464$136
28 years$1,569$1,153$833$594$418$116
29 years$1,499$1,088$776$545$378$99
30 years$1,433$1,027$722$500$341$84
31 years$1,372$971$673$459$309$72
32 years$1,314$919$628$422$279$61
33 years$1,261$870$587$388$253$52
34 years$1,210$825$548$357$229$45
35 years$1,163$782$513$329$207$38
36 years$1,118$743$479$303$188$33
37 years$1,076$705$449$279$170$28
38 years$1,036$670$420$257$154$24
39 years$998$637$394$237$140$20
40 years$962$606$369$219$127$17
41 years$929$577$346$202$115$15
42 years$896$550$325$186$104$13
43 years$866$524$305$172$95$11
44 years$836$499$286$159$86$9
45 years$809$476$268$146$78$8
46 years$782$454$252$135$71$7
47 years$757$433$237$125$64$6
48 years$733$414$223$116$58$5
49 years$709$395$209$107$53$4
50 years$687$377$197$99$48$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $704,000, adding $5,486 every year, while hoping to spend $26,058 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: 49/45/6 Blend
39$704,000$704,000$704,000$704,000
40$781,467$744,155$733,243$818,304
41$833,451$752,893$730,081$852,775
42$889,864$761,186$725,940$886,960
43$951,130$768,984$720,759$923,469
44$1,017,717$776,235$714,475$962,526
45$1,090,136$782,883$707,023$1,004,378
46$1,168,954$788,869$698,332$1,049,298
47$1,254,791$794,127$688,330$1,097,586
48$1,348,332$798,591$676,941$1,149,575
49$1,450,329$802,189$664,086$1,205,633
50$1,561,610$804,844$649,680$1,266,165
51$1,683,087$806,474$633,637$1,331,621
52$1,815,764$806,994$615,866$1,402,495
53$1,960,746$806,310$596,271$1,479,335
54$2,119,249$804,326$574,753$1,562,746
55$2,292,611$800,937$551,207$1,653,396
56$2,482,309$796,035$525,524$1,752,022
57$2,689,965$789,501$497,589$1,859,439
58$2,917,368$781,212$467,285$1,976,546
59$3,166,486$771,038$434,485$2,104,338
60$3,439,487$758,839$399,060$2,243,911
61$3,738,761$744,468$360,875$2,396,477
62$4,066,936$727,769$319,786$2,563,375
63$4,426,911$708,576$275,645$2,746,081
64$4,821,874$686,716$228,298$2,946,226
65$5,255,342$662,001$177,583$3,165,610
66$5,731,185$634,237$123,330$3,406,222
67$6,253,667$603,217$65,363$3,670,255
68$6,827,487$568,720$3,499$3,960,130
69$7,457,819$530,515$0$4,278,522
70$8,150,363$488,357$0$4,632,382
71$8,911,400$441,986$0$5,021,463
72$9,747,848$391,129$0$5,449,148
73$10,667,330$335,495$0$5,919,415
74$11,678,242$274,780$0$6,436,655
75$12,789,837$208,658$0$7,005,711
76$14,012,309$136,790$0$7,631,926
77$15,356,886$58,815$0$8,321,193
78$16,835,942$0$0$9,080,015
79$18,463,112$0$0$9,928,265
80$20,253,414$0$0$10,893,686
81$22,223,400$0$0$11,956,093
82$24,391,304$0$0$13,125,329
83$26,777,220$0$0$14,412,243
84$29,403,287$0$0$15,828,788
85$32,293,898$0$0$17,388,136
86$35,475,933$0$0$19,104,799
87$38,979,010$0$0$20,994,768
88$42,835,763$0$0$23,075,664
89$47,082,153$0$0$25,366,904
90$51,757,804$0$0$27,889,882
91$56,906,381$0$0$30,668,174
92$62,575,994$0$0$33,727,757
93$68,819,661$0$0$37,097,259
94$75,695,800$0$0$40,808,221
95$83,268,787$0$0$44,895,403
96$91,609,556$0$0$49,397,108
97$100,796,276$0$0$54,355,541
98$110,915,081$0$0$59,817,211
99$122,060,889$0$0$65,833,371
100$134,338,291$0$0$72,460,495