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%14.3%
1 years$58,301$57,782$57,275$56,780$56,297$55,297
2 years$28,862$28,324$27,803$27,298$26,808$25,803
3 years$19,050$18,510$17,991$17,490$17,008$16,031
4 years$14,145$13,607$13,093$12,601$12,130$11,187
5 years$11,203$10,668$10,160$9,679$9,221$8,316
6 years$9,242$8,711$8,211$7,740$7,297$6,430
7 years$7,842$7,316$6,823$6,364$5,934$5,106
8 years$6,793$6,271$5,787$5,338$4,923$4,133
9 years$5,977$5,460$4,984$4,547$4,146$3,394
10 years$5,324$4,813$4,345$3,920$3,532$2,818
11 years$4,791$4,284$3,826$3,411$3,038$2,360
12 years$4,347$3,845$3,395$2,992$2,633$1,991
13 years$3,971$3,475$3,033$2,642$2,296$1,688
14 years$3,650$3,159$2,725$2,345$2,012$1,439
15 years$3,371$2,886$2,461$2,091$1,772$1,231
16 years$3,128$2,648$2,231$1,872$1,566$1,056
17 years$2,913$2,438$2,030$1,682$1,389$909
18 years$2,723$2,253$1,853$1,516$1,235$784
19 years$2,553$2,088$1,697$1,370$1,100$677
20 years$2,399$1,940$1,557$1,241$983$586
21 years$2,261$1,807$1,432$1,126$880$508
22 years$2,136$1,687$1,320$1,024$788$441
23 years$2,021$1,578$1,219$932$708$383
24 years$1,916$1,478$1,127$850$636$333
25 years$1,820$1,387$1,044$777$572$290
26 years$1,731$1,304$968$710$516$253
27 years$1,650$1,227$899$650$465$220
28 years$1,574$1,156$836$596$419$192
29 years$1,503$1,091$778$546$379$167
30 years$1,437$1,030$724$501$342$146
31 years$1,376$974$675$460$309$128
32 years$1,318$922$630$423$280$111
33 years$1,264$873$588$389$253$97
34 years$1,214$827$550$358$229$85
35 years$1,166$785$514$330$208$74
36 years$1,121$745$481$303$188$65
37 years$1,079$707$450$280$171$57
38 years$1,039$672$421$258$155$50
39 years$1,001$639$395$238$140$43
40 years$965$608$370$219$127$38
41 years$931$579$347$202$115$33
42 years$899$551$326$187$105$29
43 years$868$525$305$172$95$25
44 years$839$501$287$159$86$22
45 years$811$477$269$147$78$19
46 years$784$455$253$136$71$17
47 years$759$435$238$125$65$15
48 years$735$415$223$116$59$13
49 years$712$396$210$107$53$11
50 years$689$378$197$99$48$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $706,000, adding $5,210 every year, while hoping to spend $37,553 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: 58/30/12 Blend
39$706,000$706,000$706,000$706,000
40$783,386$745,968$735,025$826,205
41$823,335$742,564$719,692$852,296
42$866,101$737,735$702,587$876,087
43$911,930$731,371$683,611$901,124
44$961,095$723,357$662,660$927,532
45$1,013,893$713,567$639,625$955,449
46$1,070,652$701,874$614,395$985,029
47$1,131,730$688,138$586,849$1,016,443
48$1,197,523$672,212$556,864$1,049,882
49$1,268,462$653,943$524,311$1,085,559
50$1,345,024$633,165$489,055$1,123,709
51$1,427,732$609,705$450,953$1,164,594
52$1,517,160$583,380$409,859$1,208,505
53$1,613,938$553,994$365,618$1,255,766
54$1,718,763$521,342$318,068$1,306,735
55$1,832,395$485,207$267,043$1,361,811
56$1,955,676$445,358$212,364$1,421,436
57$2,089,526$401,552$153,850$1,486,102
58$2,234,962$353,533$91,309$1,556,352
59$2,393,100$301,028$24,540$1,632,789
60$2,565,169$243,751$0$1,716,084
61$2,752,520$181,398$0$1,812,959
62$2,956,640$113,650$0$1,921,996
63$3,179,167$40,168$0$2,040,990
64$3,421,901$0$0$2,170,979
65$3,686,826$0$0$2,326,121
66$3,976,123$0$0$2,510,073
67$4,292,196$0$0$2,711,108
68$4,637,689$0$0$2,930,916
69$5,015,515$0$0$3,171,358
70$5,428,879$0$0$3,434,481
71$5,881,313$0$0$3,722,543
72$6,376,704$0$0$4,038,025
73$6,919,333$0$0$4,383,664
74$7,513,914$0$0$4,762,471
75$8,165,640$0$0$5,177,765
76$8,880,230$0$0$5,633,198
77$9,663,980$0$0$6,132,796
78$10,523,830$0$0$6,680,990
79$11,467,419$0$0$7,282,663
80$12,503,164$0$0$7,943,194
81$13,640,336$0$0$8,668,507
82$14,889,148$0$0$9,465,128
83$16,260,851$0$0$10,340,245
84$17,767,836$0$0$11,301,779
85$19,423,758$0$0$12,358,455
86$21,243,657$0$0$13,519,884
87$23,244,105$0$0$14,796,656
88$25,443,356$0$0$16,200,438
89$27,861,524$0$0$17,744,084
90$30,520,769$0$0$19,441,754
91$33,445,503$0$0$21,309,051
92$36,662,626$0$0$23,363,166
93$40,201,774$0$0$25,623,039
94$44,095,602$0$0$28,109,540
95$48,380,087$0$0$30,845,661
96$53,094,872$0$0$33,856,739
97$58,283,635$0$0$37,170,689
98$63,994,505$0$0$40,818,269
99$70,280,510$0$0$44,833,372
100$77,200,083$0$0$49,253,342