Can I retire at age 40 with 705,000?

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 $705,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$58,218$57,700$57,194$56,700$56,218$54,331
2 years$28,821$28,284$27,764$27,260$26,770$24,888
3 years$19,023$18,484$17,965$17,465$16,984$15,166
4 years$14,125$13,588$13,074$12,583$12,113$10,372
5 years$11,187$10,653$10,146$9,665$9,208$7,550
6 years$9,229$8,699$8,199$7,729$7,286$5,711
7 years$7,831$7,305$6,814$6,354$5,926$4,434
8 years$6,783$6,262$5,779$5,331$4,916$3,506
9 years$5,968$5,452$4,977$4,541$4,140$2,810
10 years$5,317$4,806$4,339$3,914$3,527$2,276
11 years$4,784$4,278$3,820$3,406$3,034$1,858
12 years$4,341$3,840$3,390$2,988$2,629$1,527
13 years$3,966$3,470$3,029$2,638$2,292$1,260
14 years$3,645$3,154$2,722$2,342$2,010$1,045
15 years$3,366$2,882$2,457$2,088$1,769$869
16 years$3,123$2,644$2,228$1,870$1,564$725
17 years$2,909$2,435$2,027$1,680$1,387$606
18 years$2,719$2,250$1,851$1,514$1,233$507
19 years$2,549$2,085$1,694$1,368$1,099$426
20 years$2,396$1,938$1,555$1,239$982$357
21 years$2,258$1,805$1,430$1,124$878$300
22 years$2,133$1,685$1,318$1,022$787$253
23 years$2,018$1,576$1,217$931$707$213
24 years$1,914$1,476$1,126$849$635$179
25 years$1,818$1,385$1,042$776$572$151
26 years$1,729$1,302$967$709$515$127
27 years$1,647$1,225$898$649$464$108
28 years$1,571$1,155$835$595$419$91
29 years$1,501$1,089$777$545$378$77
30 years$1,435$1,029$723$501$342$65
31 years$1,374$973$674$460$309$55
32 years$1,316$920$629$422$279$46
33 years$1,263$871$588$388$253$39
34 years$1,212$826$549$357$229$33
35 years$1,164$783$513$329$207$28
36 years$1,120$744$480$303$188$24
37 years$1,077$706$449$279$170$20
38 years$1,037$671$421$257$154$17
39 years$1,000$638$394$237$140$14
40 years$964$607$370$219$127$12
41 years$930$578$347$202$115$10
42 years$898$550$325$186$105$9
43 years$867$524$305$172$95$7
44 years$838$500$286$159$86$6
45 years$810$477$269$147$78$5
46 years$783$455$253$136$71$4
47 years$758$434$237$125$64$4
48 years$734$414$223$116$59$3
49 years$710$396$210$107$53$3
50 years$688$378$197$99$48$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $705,000, adding $5,950 every year, while hoping to spend $23,852 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: 57/26/17 Blend
39$705,000$705,000$705,000$705,000
40$783,047$745,682$734,755$823,864
41$837,540$756,843$733,991$863,415
42$896,791$767,750$732,402$903,390
43$961,262$778,367$729,935$946,412
44$1,031,457$788,655$726,535$992,779
45$1,107,936$798,568$722,143$1,042,817
46$1,191,310$808,063$716,700$1,096,890
47$1,282,255$817,089$710,141$1,155,397
48$1,381,513$825,595$702,398$1,218,779
49$1,489,902$833,524$693,404$1,287,521
50$1,608,323$840,817$683,083$1,362,160
51$1,737,765$847,411$671,360$1,443,287
52$1,879,321$853,237$658,154$1,531,556
53$2,034,191$858,225$643,382$1,627,687
54$2,203,697$862,297$626,954$1,732,475
55$2,389,297$865,373$608,780$1,846,795
56$2,592,595$867,365$588,763$1,971,615
57$2,815,355$868,182$566,803$2,108,001
58$3,059,524$867,725$542,793$2,257,131
59$3,327,244$865,892$516,625$2,420,303
60$3,620,874$862,572$488,183$2,598,948
61$3,943,013$857,649$457,348$2,794,647
62$4,296,525$850,997$423,993$3,009,141
63$4,684,560$842,486$387,987$3,244,352
64$5,110,594$831,977$349,193$3,502,400
65$5,578,453$819,321$307,469$3,785,622
66$6,092,349$804,363$262,663$4,096,599
67$6,656,928$786,935$214,622$4,438,172
68$7,277,303$766,864$163,180$4,813,479
69$7,959,109$743,961$108,168$5,225,978
70$8,708,554$718,032$49,407$5,679,485
71$9,532,478$688,866$0$6,178,205
72$10,438,415$656,245$0$6,729,191
73$11,434,667$619,935$0$7,344,866
74$12,530,380$579,688$0$8,021,937
75$13,735,630$535,245$0$8,766,661
76$15,061,522$486,329$0$9,585,938
77$16,520,288$432,650$0$10,487,372
78$18,125,406$373,898$0$11,479,345
79$19,891,728$309,750$0$12,571,097
80$21,835,617$239,860$0$13,772,812
81$23,975,102$163,866$0$15,095,716
82$26,330,052$81,385$0$16,552,184
83$28,922,355$0$0$18,155,855
84$31,776,132$0$0$19,924,048
85$34,917,961$0$0$21,896,428
86$38,377,127$0$0$24,068,106
87$42,185,900$0$0$26,459,348
88$46,379,840$0$0$29,092,491
89$50,998,126$0$0$31,992,145
90$56,083,936$0$0$35,185,428
91$61,684,844$0$0$38,702,223
92$67,853,275$0$0$42,575,461
93$74,646,999$0$0$46,841,424
94$82,129,673$0$0$51,540,100
95$90,371,442$0$0$56,715,547
96$99,449,605$0$0$62,416,317
97$109,449,340$0$0$68,695,914
98$120,464,507$0$0$75,613,293
99$132,598,538$0$0$83,233,422
100$145,965,411$0$0$91,627,893