Can I retire at age 40 with 706,000?

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 $706,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$58,301$57,782$57,275$56,780$56,297$55,365
2 years$28,862$28,324$27,803$27,298$26,808$25,871
3 years$19,050$18,510$17,991$17,490$17,008$16,096
4 years$14,145$13,607$13,093$12,601$12,130$11,250
5 years$11,203$10,668$10,160$9,679$9,221$8,376
6 years$9,242$8,711$8,211$7,740$7,297$6,486
7 years$7,842$7,316$6,823$6,364$5,934$5,160
8 years$6,793$6,271$5,787$5,338$4,923$4,184
9 years$5,977$5,460$4,984$4,547$4,146$3,442
10 years$5,324$4,813$4,345$3,920$3,532$2,863
11 years$4,791$4,284$3,826$3,411$3,038$2,403
12 years$4,347$3,845$3,395$2,992$2,633$2,030
13 years$3,971$3,475$3,033$2,642$2,296$1,725
14 years$3,650$3,159$2,725$2,345$2,012$1,473
15 years$3,371$2,886$2,461$2,091$1,772$1,263
16 years$3,128$2,648$2,231$1,872$1,566$1,086
17 years$2,913$2,438$2,030$1,682$1,389$937
18 years$2,723$2,253$1,853$1,516$1,235$809
19 years$2,553$2,088$1,697$1,370$1,100$701
20 years$2,399$1,940$1,557$1,241$983$608
21 years$2,261$1,807$1,432$1,126$880$528
22 years$2,136$1,687$1,320$1,024$788$460
23 years$2,021$1,578$1,219$932$708$400
24 years$1,916$1,478$1,127$850$636$349
25 years$1,820$1,387$1,044$777$572$304
26 years$1,731$1,304$968$710$516$266
27 years$1,650$1,227$899$650$465$232
28 years$1,574$1,156$836$596$419$203
29 years$1,503$1,091$778$546$379$177
30 years$1,437$1,030$724$501$342$155
31 years$1,376$974$675$460$309$136
32 years$1,318$922$630$423$280$119
33 years$1,264$873$588$389$253$104
34 years$1,214$827$550$358$229$91
35 years$1,166$785$514$330$208$80
36 years$1,121$745$481$303$188$70
37 years$1,079$707$450$280$171$61
38 years$1,039$672$421$258$155$54
39 years$1,001$639$395$238$140$47
40 years$965$608$370$219$127$41
41 years$931$579$347$202$115$36
42 years$899$551$326$187$105$32
43 years$868$525$305$172$95$28
44 years$839$501$287$159$86$24
45 years$811$477$269$147$78$21
46 years$784$455$253$136$71$19
47 years$759$435$238$125$65$16
48 years$735$415$223$116$59$14
49 years$712$396$210$107$53$13
50 years$689$378$197$99$48$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $706,000, adding $5,332 every year, while hoping to spend $38,666 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: 74/14/12 Blend
39$706,000$706,000$706,000$706,000
40$783,512$746,094$735,151$839,208
41$822,290$741,512$718,638$872,138
42$863,727$735,410$700,276$902,868
43$908,054$727,672$679,963$935,475
44$955,524$718,176$657,590$970,136
45$1,006,413$706,793$633,045$1,007,042
46$1,061,026$693,384$606,210$1,046,407
47$1,119,697$677,806$576,964$1,088,467
48$1,182,790$659,903$545,177$1,133,482
49$1,250,709$639,512$510,715$1,181,739
50$1,323,895$616,462$473,437$1,233,556
51$1,402,833$590,569$433,198$1,289,283
52$1,488,055$561,640$389,843$1,349,307
53$1,580,147$529,471$343,213$1,414,056
54$1,679,752$493,845$293,141$1,484,003
55$1,787,577$454,534$239,452$1,559,668
56$1,904,401$411,297$181,964$1,641,628
57$2,031,076$363,877$120,486$1,730,519
58$2,168,544$312,005$54,821$1,827,044
59$2,317,838$255,396$0$1,931,977
60$2,480,095$193,748$0$2,048,129
61$2,656,566$126,743$0$2,182,109
62$2,848,628$54,046$0$2,327,965
63$3,057,794$0$0$2,486,877
64$3,285,732$0$0$2,663,957
65$3,534,274$0$0$2,866,150
66$3,805,440$0$0$3,086,777
67$4,101,451$0$0$3,327,649
68$4,424,752$0$0$3,590,759
69$4,778,036$0$0$3,878,302
70$5,164,267$0$0$4,192,696
71$5,586,707$0$0$4,536,600
72$6,048,951$0$0$4,912,944
73$6,554,954$0$0$5,324,954
74$7,109,074$0$0$5,776,182
75$7,716,107$0$0$6,270,540
76$8,381,338$0$0$6,812,336
77$9,110,585$0$0$7,406,315
78$9,910,257$0$0$8,057,701
79$10,787,413$0$0$8,772,251
80$11,749,829$0$0$9,556,305
81$12,806,066$0$0$10,416,844
82$13,965,559$0$0$11,361,560
83$15,238,699$0$0$12,398,927
84$16,636,931$0$0$13,538,278
85$18,172,865$0$0$14,789,894
86$19,860,392$0$0$16,165,103
87$21,714,815$0$0$17,676,382
88$23,752,991$0$0$19,337,478
89$25,993,494$0$0$21,163,536
90$28,456,787$0$0$23,171,242
91$31,165,411$0$0$25,378,979
92$34,144,205$0$0$27,806,998
93$37,420,534$0$0$30,477,616
94$41,024,548$0$0$33,415,417
95$44,989,465$0$0$36,647,491
96$49,351,886$0$0$40,203,682
97$54,152,140$0$0$44,116,876
98$59,434,660$0$0$48,423,308
99$65,248,406$0$0$53,162,900
100$71,647,323$0$0$58,379,644