Can I retire at age 40 with 720,000?

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 $720,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.7%
1 years$59,457$58,927$58,411$57,906$57,414$55,399
2 years$29,434$28,886$28,355$27,840$27,340$25,331
3 years$19,428$18,877$18,347$17,837$17,346$15,406
4 years$14,426$13,877$13,352$12,851$12,371$10,515
5 years$11,425$10,880$10,362$9,870$9,404$7,637
6 years$9,425$8,884$8,374$7,894$7,441$5,765
7 years$7,998$7,461$6,959$6,490$6,052$4,465
8 years$6,927$6,395$5,902$5,444$5,020$3,522
9 years$6,095$5,568$5,083$4,637$4,228$2,817
10 years$5,430$4,908$4,431$3,997$3,602$2,275
11 years$4,886$4,369$3,901$3,479$3,098$1,853
12 years$4,433$3,922$3,462$3,051$2,685$1,518
13 years$4,050$3,544$3,093$2,694$2,341$1,250
14 years$3,722$3,221$2,779$2,391$2,052$1,034
15 years$3,438$2,943$2,509$2,133$1,807$857
16 years$3,190$2,700$2,275$1,910$1,597$713
17 years$2,971$2,487$2,070$1,716$1,416$594
18 years$2,777$2,298$1,890$1,546$1,259$496
19 years$2,603$2,130$1,730$1,397$1,122$415
20 years$2,447$1,979$1,588$1,265$1,002$347
21 years$2,306$1,843$1,461$1,148$897$291
22 years$2,178$1,721$1,346$1,044$804$244
23 years$2,061$1,609$1,243$951$722$205
24 years$1,954$1,508$1,149$867$649$172
25 years$1,856$1,415$1,065$792$584$145
26 years$1,766$1,330$987$724$526$122
27 years$1,682$1,252$917$663$474$102
28 years$1,605$1,179$852$607$428$86
29 years$1,533$1,113$793$557$386$72
30 years$1,466$1,051$739$511$349$61
31 years$1,403$993$689$469$316$51
32 years$1,344$940$643$431$285$43
33 years$1,289$890$600$397$258$36
34 years$1,238$844$561$365$234$31
35 years$1,189$800$524$336$212$26
36 years$1,144$759$490$309$192$22
37 years$1,100$721$459$285$174$18
38 years$1,060$685$430$263$158$15
39 years$1,021$652$403$242$143$13
40 years$984$620$377$224$130$11
41 years$950$590$354$206$118$9
42 years$917$562$332$190$107$8
43 years$885$536$312$176$97$7
44 years$855$511$292$162$88$5
45 years$827$487$275$150$80$5
46 years$800$464$258$138$73$4
47 years$774$443$242$128$66$3
48 years$749$423$228$118$60$3
49 years$726$404$214$109$54$2
50 years$703$386$201$101$49$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $720,000, adding $5,245 every year, while hoping to spend $47,539 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: 51/29/20 Blend
39$720,000$720,000$720,000$720,000
40$798,850$760,690$749,530$834,913
41$829,752$747,383$724,058$847,050
42$862,212$731,830$696,140$854,908
43$896,340$713,872$665,643$862,441
44$932,253$693,339$632,428$869,637
45$970,081$670,050$596,353$876,483
46$1,009,964$643,817$557,265$882,970
47$1,052,054$614,438$515,007$889,089
48$1,096,518$581,700$469,415$894,835
49$1,143,538$545,378$420,315$900,208
50$1,193,312$505,235$367,529$905,208
51$1,246,057$461,018$310,868$909,842
52$1,302,008$412,462$250,136$914,122
53$1,361,426$359,286$185,128$918,065
54$1,424,593$301,192$115,631$921,697
55$1,491,818$237,867$41,422$925,050
56$1,563,441$168,980$0$928,165
57$1,639,832$94,180$0$939,155
58$1,721,398$13,098$0$959,981
59$1,808,584$0$0$981,924
60$1,901,878$0$0$1,028,958
61$2,001,817$0$0$1,083,868
62$2,108,987$0$0$1,142,802
63$2,224,031$0$0$1,206,121
64$2,347,659$0$0$1,274,221
65$2,480,644$0$0$1,347,537
66$2,623,840$0$0$1,426,548
67$2,778,183$0$0$1,511,776
68$2,944,700$0$0$1,603,799
69$3,124,520$0$0$1,703,249
70$3,318,885$0$0$1,810,823
71$3,529,159$0$0$1,927,286
72$3,756,841$0$0$2,053,478
73$4,003,579$0$0$2,190,325
74$4,271,186$0$0$2,338,843
75$4,561,655$0$0$2,500,150
76$4,877,179$0$0$2,675,478
77$5,220,168$0$0$2,866,178
78$5,593,276$0$0$3,073,741
79$5,999,421$0$0$3,299,805
80$6,441,816$0$0$3,546,171
81$6,923,994$0$0$3,814,826
82$7,449,845$0$0$4,107,952
83$8,023,651$0$0$4,427,954
84$8,650,123$0$0$4,777,477
85$9,334,450$0$0$5,159,434
86$10,082,341$0$0$5,577,032
87$10,900,084$0$0$6,033,802
88$11,794,602$0$0$6,533,633
89$12,773,515$0$0$7,080,804
90$13,845,217$0$0$7,680,030
91$15,018,950$0$0$8,336,501
92$16,304,892$0$0$9,055,936
93$17,714,251$0$0$9,844,631
94$19,259,372$0$0$10,709,519
95$20,953,851$0$0$11,658,239
96$22,812,662$0$0$12,699,203
97$24,852,300$0$0$13,841,679
98$27,090,933$0$0$15,095,872
99$29,548,572$0$0$16,473,026
100$32,247,264$0$0$17,985,528