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%17.3%
1 years$58,301$57,782$57,275$56,780$56,297$54,627
2 years$28,862$28,324$27,803$27,298$26,808$25,139
3 years$19,050$18,510$17,991$17,490$17,008$15,392
4 years$14,145$13,607$13,093$12,601$12,130$10,581
5 years$11,203$10,668$10,160$9,679$9,221$7,742
6 years$9,242$8,711$8,211$7,740$7,297$5,889
7 years$7,842$7,316$6,823$6,364$5,934$4,598
8 years$6,793$6,271$5,787$5,338$4,923$3,657
9 years$5,977$5,460$4,984$4,547$4,146$2,949
10 years$5,324$4,813$4,345$3,920$3,532$2,404
11 years$4,791$4,284$3,826$3,411$3,038$1,975
12 years$4,347$3,845$3,395$2,992$2,633$1,633
13 years$3,971$3,475$3,033$2,642$2,296$1,358
14 years$3,650$3,159$2,725$2,345$2,012$1,134
15 years$3,371$2,886$2,461$2,091$1,772$950
16 years$3,128$2,648$2,231$1,872$1,566$798
17 years$2,913$2,438$2,030$1,682$1,389$672
18 years$2,723$2,253$1,853$1,516$1,235$567
19 years$2,553$2,088$1,697$1,370$1,100$479
20 years$2,399$1,940$1,557$1,241$983$405
21 years$2,261$1,807$1,432$1,126$880$343
22 years$2,136$1,687$1,320$1,024$788$291
23 years$2,021$1,578$1,219$932$708$247
24 years$1,916$1,478$1,127$850$636$210
25 years$1,820$1,387$1,044$777$572$178
26 years$1,731$1,304$968$710$516$152
27 years$1,650$1,227$899$650$465$129
28 years$1,574$1,156$836$596$419$110
29 years$1,503$1,091$778$546$379$93
30 years$1,437$1,030$724$501$342$79
31 years$1,376$974$675$460$309$68
32 years$1,318$922$630$423$280$58
33 years$1,264$873$588$389$253$49
34 years$1,214$827$550$358$229$42
35 years$1,166$785$514$330$208$36
36 years$1,121$745$481$303$188$30
37 years$1,079$707$450$280$171$26
38 years$1,039$672$421$258$155$22
39 years$1,001$639$395$238$140$19
40 years$965$608$370$219$127$16
41 years$931$579$347$202$115$14
42 years$899$551$326$187$105$12
43 years$868$525$305$172$95$10
44 years$839$501$287$159$86$8
45 years$811$477$269$147$78$7
46 years$784$455$253$136$71$6
47 years$759$435$238$125$65$5
48 years$735$415$223$116$59$4
49 years$712$396$210$107$53$4
50 years$689$378$197$99$48$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $706,000, adding $6,804 every year, while hoping to spend $55,112 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: 59/31/10 Blend
39$706,000$706,000$706,000$706,000
40$785,030$747,612$736,669$829,109
41$806,465$725,607$702,709$837,548
42$828,238$700,675$665,764$839,925
43$850,327$672,617$625,676$841,169
44$872,704$641,219$582,279$841,178
45$895,336$606,255$535,402$839,837
46$918,186$567,487$484,863$837,028
47$941,209$524,662$430,474$832,620
48$964,356$477,514$372,039$826,473
49$987,568$425,760$309,350$818,437
50$1,010,781$369,104$242,195$808,352
51$1,033,920$307,229$170,347$796,042
52$1,056,901$239,804$93,575$781,321
53$1,079,627$166,476$11,632$763,988
54$1,101,991$86,876$0$743,825
55$1,123,872$611$0$728,689
56$1,145,134$0$0$712,088
57$1,165,623$0$0$724,172
58$1,185,168$0$0$735,818
59$1,203,577$0$0$746,693
60$1,220,636$0$0$756,655
61$1,236,105$0$0$765,548
62$1,249,717$0$0$773,197
63$1,261,175$0$0$779,407
64$1,270,147$0$0$783,962
65$1,276,265$0$0$786,621
66$1,279,119$0$0$787,116
67$1,278,252$0$0$785,150
68$1,273,161$0$0$780,392
69$1,263,282$0$0$772,477
70$1,247,995$0$0$760,997
71$1,226,607$0$0$745,503
72$1,198,354$0$0$725,495
73$1,162,389$0$0$700,421
74$1,117,771$0$0$669,669
75$1,063,463$0$0$632,560
76$998,313$0$0$588,346
77$921,049$0$0$536,197
78$830,262$0$0$475,196
79$724,396$0$0$404,328
80$601,729$0$0$322,473
81$460,358$0$0$228,391
82$298,182$0$0$120,713
83$112,875$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0