Can I retire at age 40 with 707,000?

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 $707,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$58,383$57,863$57,356$56,861$56,377$54,616
2 years$28,903$28,364$27,843$27,337$26,846$25,088
3 years$19,077$18,536$18,016$17,515$17,032$15,332
4 years$14,165$13,626$13,111$12,619$12,148$10,518
5 years$11,219$10,683$10,175$9,692$9,234$7,679
6 years$9,255$8,724$8,223$7,751$7,307$5,828
7 years$7,853$7,326$6,833$6,373$5,942$4,540
8 years$6,802$6,280$5,795$5,346$4,930$3,603
9 years$5,985$5,468$4,991$4,553$4,152$2,899
10 years$5,332$4,819$4,351$3,925$3,537$2,357
11 years$4,798$4,291$3,831$3,416$3,042$1,931
12 years$4,353$3,851$3,400$2,996$2,636$1,593
13 years$3,977$3,480$3,038$2,645$2,299$1,321
14 years$3,655$3,163$2,729$2,348$2,015$1,100
15 years$3,376$2,890$2,464$2,094$1,774$918
16 years$3,132$2,651$2,234$1,875$1,568$769
17 years$2,917$2,442$2,033$1,685$1,390$646
18 years$2,727$2,256$1,856$1,518$1,236$543
19 years$2,556$2,091$1,699$1,372$1,102$458
20 years$2,403$1,943$1,559$1,243$984$386
21 years$2,264$1,810$1,434$1,128$881$326
22 years$2,139$1,690$1,322$1,025$790$276
23 years$2,024$1,580$1,220$934$709$233
24 years$1,919$1,481$1,129$852$637$197
25 years$1,823$1,389$1,045$778$573$167
26 years$1,734$1,306$970$711$516$142
27 years$1,652$1,229$900$651$466$120
28 years$1,576$1,158$837$596$420$102
29 years$1,505$1,092$779$547$379$86
30 years$1,439$1,032$725$502$343$73
31 years$1,378$975$676$461$310$62
32 years$1,320$923$631$424$280$53
33 years$1,266$874$589$390$254$45
34 years$1,215$828$551$358$230$38
35 years$1,168$786$515$330$208$32
36 years$1,123$746$481$304$188$27
37 years$1,080$708$451$280$171$23
38 years$1,040$673$422$258$155$20
39 years$1,003$640$395$238$140$17
40 years$967$609$371$219$127$14
41 years$932$580$348$203$116$12
42 years$900$552$326$187$105$10
43 years$869$526$306$173$95$9
44 years$840$501$287$159$86$7
45 years$812$478$270$147$78$6
46 years$785$456$253$136$71$5
47 years$760$435$238$126$65$5
48 years$736$415$224$116$59$4
49 years$713$397$210$107$53$3
50 years$690$379$198$99$48$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $707,000, adding $2,253 every year, while hoping to spend $52,477 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: 33/46/21 Blend
39$707,000$707,000$707,000$707,000
40$781,438$743,967$733,008$802,113
41$805,310$724,586$701,729$798,331
42$829,857$702,497$667,643$789,313
43$855,094$677,511$630,601$778,509
44$881,035$649,430$590,447$765,796
45$907,690$618,042$547,017$751,040
46$935,074$583,125$500,141$734,101
47$963,197$544,444$449,641$714,833
48$992,069$501,748$395,331$693,077
49$1,021,702$454,775$337,016$668,669
50$1,052,103$403,247$274,493$641,433
51$1,083,280$346,868$207,551$611,184
52$1,115,238$285,328$135,968$577,726
53$1,147,983$218,300$59,513$540,853
54$1,181,515$145,435$0$500,345
55$1,215,836$66,367$0$460,919
56$1,250,942$0$0$431,935
57$1,286,828$0$0$409,609
58$1,323,486$0$0$421,102
59$1,360,904$0$0$432,813
60$1,399,064$0$0$444,735
61$1,437,945$0$0$456,857
62$1,477,523$0$0$469,168
63$1,517,764$0$0$481,656
64$1,558,629$0$0$494,303
65$1,600,074$0$0$507,090
66$1,642,044$0$0$519,997
67$1,684,475$0$0$532,998
68$1,727,296$0$0$546,063
69$1,770,420$0$0$559,160
70$1,813,752$0$0$572,251
71$1,857,181$0$0$585,293
72$1,900,579$0$0$598,237
73$1,943,804$0$0$611,030
74$1,986,694$0$0$623,607
75$2,029,063$0$0$635,901
76$2,070,705$0$0$647,832
77$2,111,388$0$0$659,312
78$2,150,848$0$0$670,244
79$2,188,792$0$0$680,517
80$2,224,891$0$0$690,008
81$2,258,777$0$0$698,580
82$2,290,038$0$0$706,078
83$2,318,215$0$0$712,333
84$2,342,796$0$0$717,155
85$2,363,210$0$0$720,332
86$2,378,821$0$0$721,628
87$2,388,924$0$0$720,783
88$2,392,732$0$0$717,507
89$2,389,373$0$0$711,478
90$2,377,878$0$0$702,338
91$2,357,171$0$0$689,692
92$2,326,060$0$0$673,101
93$2,283,221$0$0$652,080
94$2,227,190$0$0$626,089
95$2,156,343$0$0$594,534
96$2,068,882$0$0$556,754
97$1,962,817$0$0$512,020
98$1,835,945$0$0$459,526
99$1,685,828$0$0$398,378
100$1,509,772$0$0$327,591