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%14.9%
1 years$58,383$57,863$57,356$56,861$56,377$55,239
2 years$28,903$28,364$27,843$27,337$26,846$25,704
3 years$19,077$18,536$18,016$17,515$17,032$15,923
4 years$14,165$13,626$13,111$12,619$12,148$11,079
5 years$11,219$10,683$10,175$9,692$9,234$8,209
6 years$9,255$8,724$8,223$7,751$7,307$6,326
7 years$7,853$7,326$6,833$6,373$5,942$5,007
8 years$6,802$6,280$5,795$5,346$4,930$4,039
9 years$5,985$5,468$4,991$4,553$4,152$3,305
10 years$5,332$4,819$4,351$3,925$3,537$2,734
11 years$4,798$4,291$3,831$3,416$3,042$2,281
12 years$4,353$3,851$3,400$2,996$2,636$1,916
13 years$3,977$3,480$3,038$2,645$2,299$1,619
14 years$3,655$3,163$2,729$2,348$2,015$1,374
15 years$3,376$2,890$2,464$2,094$1,774$1,171
16 years$3,132$2,651$2,234$1,875$1,568$1,000
17 years$2,917$2,442$2,033$1,685$1,390$857
18 years$2,727$2,256$1,856$1,518$1,236$736
19 years$2,556$2,091$1,699$1,372$1,102$633
20 years$2,403$1,943$1,559$1,243$984$546
21 years$2,264$1,810$1,434$1,128$881$471
22 years$2,139$1,690$1,322$1,025$790$407
23 years$2,024$1,580$1,220$934$709$352
24 years$1,919$1,481$1,129$852$637$304
25 years$1,823$1,389$1,045$778$573$264
26 years$1,734$1,306$970$711$516$229
27 years$1,652$1,229$900$651$466$198
28 years$1,576$1,158$837$596$420$172
29 years$1,505$1,092$779$547$379$149
30 years$1,439$1,032$725$502$343$130
31 years$1,378$975$676$461$310$113
32 years$1,320$923$631$424$280$98
33 years$1,266$874$589$390$254$85
34 years$1,215$828$551$358$230$74
35 years$1,168$786$515$330$208$64
36 years$1,123$746$481$304$188$56
37 years$1,080$708$451$280$171$49
38 years$1,040$673$422$258$155$42
39 years$1,003$640$395$238$140$37
40 years$967$609$371$219$127$32
41 years$932$580$348$203$116$28
42 years$900$552$326$187$105$24
43 years$869$526$306$173$95$21
44 years$840$501$287$159$86$18
45 years$812$478$270$147$78$16
46 years$785$456$253$136$71$14
47 years$760$435$238$126$65$12
48 years$736$415$224$116$59$10
49 years$713$397$210$107$53$9
50 years$690$379$198$99$48$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $707,000, adding $4,899 every year, while hoping to spend $47,635 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: 66/11/23 Blend
39$707,000$707,000$707,000$707,000
40$784,167$746,696$735,738$830,984
41$813,469$732,601$709,702$848,963
42$844,163$716,219$681,197$862,749
43$876,341$697,387$650,090$876,718
44$910,103$675,934$616,243$890,889
45$945,556$651,677$579,510$905,285
46$982,817$624,424$539,739$919,933
47$1,022,016$593,972$496,771$934,865
48$1,063,289$560,104$450,440$950,118
49$1,106,789$522,593$400,574$965,733
50$1,152,679$481,198$346,991$981,762
51$1,201,140$435,665$289,503$998,258
52$1,252,366$385,723$227,912$1,015,288
53$1,306,573$331,088$162,011$1,032,925
54$1,363,991$271,459$91,587$1,051,252
55$1,424,878$206,520$16,415$1,070,366
56$1,489,510$135,934$0$1,090,374
57$1,558,192$59,347$0$1,127,058
58$1,631,257$0$0$1,170,215
59$1,709,071$0$0$1,218,889
60$1,792,031$0$0$1,278,467
61$1,880,575$0$0$1,342,082
62$1,975,182$0$0$1,410,082
63$2,076,377$0$0$1,482,848
64$2,184,735$0$0$1,560,797
65$2,300,887$0$0$1,644,389
66$2,425,526$0$0$1,734,125
67$2,559,412$0$0$1,830,557
68$2,703,378$0$0$1,934,292
69$2,858,340$0$0$2,045,993
70$3,025,304$0$0$2,166,392
71$3,205,374$0$0$2,296,290
72$3,399,762$0$0$2,436,569
73$3,609,803$0$0$2,588,197
74$3,836,961$0$0$2,752,239
75$4,082,845$0$0$2,929,864
76$4,349,228$0$0$3,122,360
77$4,638,054$0$0$3,331,140
78$4,951,464$0$0$3,557,760
79$5,291,813$0$0$3,803,931
80$5,661,689$0$0$4,071,535
81$6,063,941$0$0$4,362,641
82$6,501,703$0$0$4,679,529
83$6,978,422$0$0$5,024,704
84$7,497,894$0$0$5,400,924
85$8,064,293$0$0$5,811,226
86$8,682,216$0$0$6,258,949
87$9,356,721$0$0$6,747,773
88$10,093,376$0$0$7,281,744
89$10,898,312$0$0$7,865,319
90$11,778,276$0$0$8,503,406
91$12,740,700$0$0$9,201,406
92$13,793,764$0$0$9,965,268
93$14,946,475$0$0$10,801,541
94$16,208,755$0$0$11,717,438
95$17,591,525$0$0$12,720,902
96$19,106,817$0$0$13,820,680
97$20,767,879$0$0$15,026,407
98$22,589,302$0$0$16,348,692
99$24,587,158$0$0$17,799,223
100$26,779,148$0$0$19,390,870