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%15.7%
1 years$58,136$57,618$57,113$56,619$56,138$54,825
2 years$28,780$28,244$27,725$27,221$26,732$25,417
3 years$18,996$18,458$17,940$17,441$16,960$15,684
4 years$14,105$13,568$13,055$12,565$12,096$10,868
5 years$11,171$10,638$10,132$9,651$9,195$8,020
6 years$9,216$8,687$8,188$7,718$7,276$6,153
7 years$7,820$7,295$6,804$6,345$5,917$4,848
8 years$6,773$6,253$5,770$5,323$4,909$3,893
9 years$5,960$5,444$4,970$4,534$4,134$3,170
10 years$5,309$4,799$4,333$3,908$3,522$2,609
11 years$4,777$4,272$3,815$3,401$3,029$2,166
12 years$4,335$3,835$3,385$2,984$2,625$1,810
13 years$3,960$3,465$3,025$2,634$2,289$1,521
14 years$3,639$3,150$2,718$2,338$2,007$1,284
15 years$3,362$2,877$2,454$2,085$1,767$1,088
16 years$3,119$2,640$2,225$1,867$1,562$924
17 years$2,905$2,431$2,024$1,678$1,385$787
18 years$2,715$2,247$1,848$1,512$1,231$672
19 years$2,545$2,082$1,692$1,366$1,097$575
20 years$2,393$1,935$1,553$1,237$980$492
21 years$2,255$1,802$1,428$1,123$877$422
22 years$2,130$1,682$1,316$1,021$786$363
23 years$2,015$1,573$1,215$930$706$312
24 years$1,911$1,474$1,124$848$634$268
25 years$1,815$1,384$1,041$774$571$231
26 years$1,727$1,300$965$708$514$199
27 years$1,645$1,224$897$648$464$171
28 years$1,569$1,153$833$594$418$148
29 years$1,499$1,088$776$545$378$127
30 years$1,433$1,027$722$500$341$110
31 years$1,372$971$673$459$309$95
32 years$1,314$919$628$422$279$82
33 years$1,261$870$587$388$253$71
34 years$1,210$825$548$357$229$61
35 years$1,163$782$513$329$207$53
36 years$1,118$743$479$303$188$45
37 years$1,076$705$449$279$170$39
38 years$1,036$670$420$257$154$34
39 years$998$637$394$237$140$29
40 years$962$606$369$219$127$25
41 years$929$577$346$202$115$22
42 years$896$550$325$186$104$19
43 years$866$524$305$172$95$16
44 years$836$499$286$159$86$14
45 years$809$476$268$146$78$12
46 years$782$454$252$135$71$11
47 years$757$433$237$125$64$9
48 years$733$414$223$116$58$8
49 years$709$395$209$107$53$7
50 years$687$377$197$99$48$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $704,000, adding $6,564 every year, while hoping to spend $41,650 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: 59/36/5 Blend
39$704,000$704,000$704,000$704,000
40$782,579$745,267$734,355$827,669
41$818,087$737,470$714,640$850,853
42$855,820$727,894$692,870$870,757
43$895,963$716,410$668,930$891,397
44$938,715$702,878$642,702$912,846
45$984,295$687,150$614,065$935,184
46$1,032,944$669,072$582,887$958,503
47$1,084,926$648,478$549,035$982,903
48$1,140,528$625,193$512,367$1,008,500
49$1,200,067$599,033$472,737$1,035,422
50$1,263,890$569,802$429,990$1,063,813
51$1,332,378$537,293$383,966$1,093,834
52$1,405,948$501,288$334,496$1,125,666
53$1,485,059$461,555$281,405$1,159,510
54$1,570,214$417,850$224,511$1,195,592
55$1,661,965$369,914$163,622$1,234,164
56$1,760,920$317,474$98,538$1,275,507
57$1,867,745$260,242$29,050$1,319,936
58$1,983,174$197,913$0$1,367,800
59$2,108,012$130,164$0$1,421,897
60$2,243,144$56,657$0$1,482,065
61$2,389,542$0$0$1,547,251
62$2,548,278$0$0$1,627,105
63$2,720,527$0$0$1,738,162
64$2,907,584$0$0$1,858,816
65$3,110,872$0$0$1,989,993
66$3,331,956$0$0$2,132,710
67$3,572,561$0$0$2,288,086
68$3,834,580$0$0$2,457,352
69$4,120,100$0$0$2,641,863
70$4,431,417$0$0$2,843,112
71$4,771,057$0$0$3,062,738
72$5,141,800$0$0$3,302,550
73$5,546,709$0$0$3,564,536
74$5,989,152$0$0$3,850,886
75$6,472,839$0$0$4,164,011
76$7,001,856$0$0$4,506,566
77$7,580,699$0$0$4,881,472
78$8,214,321$0$0$5,291,949
79$8,908,174$0$0$5,741,540
80$9,668,265$0$0$6,234,149
81$10,501,205$0$0$6,774,073
82$11,414,279$0$0$7,366,047
83$12,415,508$0$0$8,015,284
84$13,513,726$0$0$8,727,528
85$14,718,666$0$0$9,509,103
86$16,041,046$0$0$10,366,976
87$17,492,673$0$0$11,308,823
88$19,086,551$0$0$12,343,097
89$20,837,009$0$0$13,479,112
90$22,759,827$0$0$14,727,126
91$24,872,393$0$0$16,098,442
92$27,193,859$0$0$17,605,510
93$29,745,325$0$0$19,262,048
94$32,550,038$0$0$21,083,167
95$35,633,609$0$0$23,085,516
96$39,024,253$0$0$25,287,438
97$42,753,057$0$0$27,709,144
98$46,854,272$0$0$30,372,899
99$51,365,634$0$0$33,303,235
100$56,328,719$0$0$36,527,183