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%11.2%
1 years$58,136$57,618$57,113$56,619$56,138$55,854
2 years$28,780$28,244$27,725$27,221$26,732$26,446
3 years$18,996$18,458$17,940$17,441$16,960$16,680
4 years$14,105$13,568$13,055$12,565$12,096$11,825
5 years$11,171$10,638$10,132$9,651$9,195$8,933
6 years$9,216$8,687$8,188$7,718$7,276$7,023
7 years$7,820$7,295$6,804$6,345$5,917$5,674
8 years$6,773$6,253$5,770$5,323$4,909$4,676
9 years$5,960$5,444$4,970$4,534$4,134$3,910
10 years$5,309$4,799$4,333$3,908$3,522$3,308
11 years$4,777$4,272$3,815$3,401$3,029$2,825
12 years$4,335$3,835$3,385$2,984$2,625$2,430
13 years$3,960$3,465$3,025$2,634$2,289$2,103
14 years$3,639$3,150$2,718$2,338$2,007$1,829
15 years$3,362$2,877$2,454$2,085$1,767$1,598
16 years$3,119$2,640$2,225$1,867$1,562$1,401
17 years$2,905$2,431$2,024$1,678$1,385$1,232
18 years$2,715$2,247$1,848$1,512$1,231$1,086
19 years$2,545$2,082$1,692$1,366$1,097$960
20 years$2,393$1,935$1,553$1,237$980$850
21 years$2,255$1,802$1,428$1,123$877$754
22 years$2,130$1,682$1,316$1,021$786$670
23 years$2,015$1,573$1,215$930$706$596
24 years$1,911$1,474$1,124$848$634$531
25 years$1,815$1,384$1,041$774$571$474
26 years$1,727$1,300$965$708$514$423
27 years$1,645$1,224$897$648$464$377
28 years$1,569$1,153$833$594$418$337
29 years$1,499$1,088$776$545$378$302
30 years$1,433$1,027$722$500$341$270
31 years$1,372$971$673$459$309$242
32 years$1,314$919$628$422$279$217
33 years$1,261$870$587$388$253$194
34 years$1,210$825$548$357$229$174
35 years$1,163$782$513$329$207$156
36 years$1,118$743$479$303$188$140
37 years$1,076$705$449$279$170$126
38 years$1,036$670$420$257$154$113
39 years$998$637$394$237$140$101
40 years$962$606$369$219$127$91
41 years$929$577$346$202$115$82
42 years$896$550$325$186$104$73
43 years$866$524$305$172$95$66
44 years$836$499$286$159$86$59
45 years$809$476$268$146$78$53
46 years$782$454$252$135$71$48
47 years$757$433$237$125$64$43
48 years$733$414$223$116$58$39
49 years$709$395$209$107$53$35
50 years$687$377$197$99$48$31

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $704,000, adding $3,185 every year, while hoping to spend $33,189 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: 68/11/21 Blend
39$704,000$704,000$704,000$704,000
40$779,093$741,781$730,869$827,771
41$823,248$742,816$720,041$861,785
42$870,794$742,789$707,737$894,831
43$922,043$741,613$693,873$930,184
44$977,335$739,196$678,362$968,069
45$1,037,046$735,439$661,110$1,008,737
46$1,101,588$730,239$642,021$1,052,462
47$1,171,415$723,486$620,994$1,099,551
48$1,247,025$715,062$597,922$1,150,340
49$1,328,964$704,843$572,695$1,205,201
50$1,417,836$692,697$545,198$1,264,545
51$1,514,302$678,486$515,309$1,328,826
52$1,619,091$662,062$482,902$1,398,546
53$1,733,003$643,269$447,844$1,474,258
54$1,856,921$621,940$409,999$1,556,574
55$1,991,814$597,902$369,220$1,646,170
56$2,138,748$570,969$325,359$1,743,790
57$2,298,899$540,945$278,257$1,850,258
58$2,473,558$507,622$227,750$1,966,483
59$2,664,148$470,783$173,666$2,093,468
60$2,872,233$430,194$115,826$2,232,321
61$3,099,539$385,611$54,044$2,384,266
62$3,347,961$336,775$0$2,550,650
63$3,619,588$283,412$0$2,735,629
64$3,916,721$225,234$0$2,951,277
65$4,241,892$161,936$0$3,187,336
66$4,597,888$93,194$0$3,445,857
67$4,987,781$18,668$0$3,729,100
68$5,414,951$0$0$4,039,559
69$5,883,123$0$0$4,387,485
70$6,396,397$0$0$4,771,447
71$6,959,291$0$0$5,192,572
72$7,576,780$0$0$5,654,587
73$8,254,343$0$0$6,161,596
74$8,998,017$0$0$6,718,124
75$9,814,450$0$0$7,329,150
76$10,710,966$0$0$8,000,163
77$11,695,634$0$0$8,737,208
78$12,777,340$0$0$9,546,944
79$13,965,875$0$0$10,436,707
80$15,272,027$0$0$11,414,579
81$16,707,678$0$0$12,489,463
82$18,285,919$0$0$13,671,170
83$20,021,173$0$0$14,970,506
84$21,929,331$0$0$16,399,378
85$24,027,901$0$0$17,970,904
86$26,336,170$0$0$19,699,537
87$28,875,392$0$0$21,601,202
88$31,668,981$0$0$23,693,446
89$34,742,738$0$0$25,995,599
90$38,125,090$0$0$28,528,962
91$41,847,357$0$0$31,317,005
92$45,944,050$0$0$34,385,589
93$50,453,197$0$0$37,763,207
94$55,416,696$0$0$41,481,257
95$60,880,716$0$0$45,574,332
96$66,896,130$0$0$50,080,554
97$73,518,991$0$0$55,041,927
98$80,811,067$0$0$60,504,733
99$88,840,418$0$0$66,519,975
100$97,682,043$0$0$73,143,850