Can I retire at age 40 with 721,000?

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 $721,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.8%
1 years$59,540$59,009$58,492$57,987$57,494$55,234
2 years$29,475$28,926$28,394$27,878$27,378$25,129
3 years$19,455$18,903$18,373$17,862$17,370$15,203
4 years$14,446$13,896$13,371$12,868$12,388$10,319
5 years$11,441$10,895$10,376$9,884$9,417$7,452
6 years$9,439$8,896$8,386$7,904$7,452$5,590
7 years$8,009$7,471$6,968$6,499$6,060$4,303
8 years$6,937$6,404$5,910$5,452$5,027$3,372
9 years$6,104$5,576$5,090$4,644$4,234$2,679
10 years$5,438$4,915$4,438$4,003$3,607$2,149
11 years$4,893$4,375$3,907$3,484$3,103$1,737
12 years$4,439$3,927$3,467$3,056$2,689$1,413
13 years$4,056$3,549$3,098$2,698$2,345$1,155
14 years$3,727$3,226$2,783$2,395$2,055$947
15 years$3,443$2,947$2,513$2,136$1,810$780
16 years$3,194$2,704$2,278$1,912$1,599$643
17 years$2,975$2,490$2,073$1,718$1,418$532
18 years$2,781$2,301$1,893$1,548$1,261$440
19 years$2,607$2,133$1,733$1,399$1,124$365
20 years$2,450$1,982$1,590$1,267$1,004$303
21 years$2,309$1,846$1,463$1,150$898$252
22 years$2,181$1,723$1,348$1,046$805$209
23 years$2,064$1,611$1,245$952$723$174
24 years$1,957$1,510$1,151$869$650$145
25 years$1,859$1,417$1,066$793$585$121
26 years$1,768$1,332$989$725$527$101
27 years$1,685$1,253$918$664$475$84
28 years$1,607$1,181$854$608$428$70
29 years$1,535$1,114$794$558$387$58
30 years$1,468$1,052$740$512$350$49
31 years$1,405$995$690$470$316$41
32 years$1,346$941$644$432$286$34
33 years$1,291$891$601$397$259$28
34 years$1,240$845$561$366$234$24
35 years$1,191$801$525$337$212$20
36 years$1,145$760$491$310$192$16
37 years$1,102$722$460$286$174$14
38 years$1,061$686$430$263$158$11
39 years$1,022$653$403$243$143$10
40 years$986$621$378$224$130$8
41 years$951$591$354$207$118$7
42 years$918$563$332$191$107$6
43 years$887$536$312$176$97$5
44 years$857$511$293$162$88$4
45 years$828$488$275$150$80$3
46 years$801$465$258$139$73$3
47 years$775$444$243$128$66$2
48 years$750$424$228$118$60$2
49 years$727$405$214$109$54$2
50 years$704$387$201$101$49$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $721,000, adding $5,597 every year, while hoping to spend $27,253 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: 66/28/6 Blend
39$721,000$721,000$721,000$721,000
40$800,315$762,102$750,927$852,016
41$852,950$770,448$747,086$895,399
42$910,041$778,290$742,203$938,998
43$972,013$785,574$736,214$985,918
44$1,039,334$792,242$729,053$1,036,477
45$1,112,519$798,235$720,649$1,091,028
46$1,192,135$803,488$710,930$1,149,961
47$1,278,805$807,931$699,819$1,213,702
48$1,373,215$811,492$687,235$1,282,726
49$1,476,120$814,092$673,095$1,357,552
50$1,588,351$815,650$657,310$1,438,756
51$1,710,823$816,076$639,789$1,526,970
52$1,844,540$815,277$620,436$1,622,895
53$1,990,612$813,155$599,149$1,727,299
54$2,150,258$809,603$575,824$1,841,033
55$2,324,821$804,510$550,351$1,965,035
56$2,515,780$797,758$522,615$2,100,336
57$2,724,762$789,220$492,494$2,248,078
58$2,953,559$778,764$459,865$2,409,518
59$3,204,147$766,248$424,595$2,586,040
60$3,478,698$751,522$386,547$2,779,174
61$3,779,606$734,428$345,578$2,990,607
62$4,109,509$714,798$301,538$3,222,196
63$4,471,310$692,455$254,270$3,475,993
64$4,868,208$667,209$203,612$3,754,258
65$5,303,725$638,862$149,393$4,059,485
66$5,781,743$607,204$91,435$4,394,424
67$6,306,534$572,011$29,552$4,762,106
68$6,882,809$533,047$0$5,165,875
69$7,515,753$490,065$0$5,611,753
70$8,211,081$442,799$0$6,103,642
71$8,975,088$390,972$0$6,644,144
72$9,814,706$334,289$0$7,238,215
73$10,737,577$272,441$0$7,891,322
74$11,752,117$205,097$0$8,609,489
75$12,867,598$131,911$0$9,399,358
76$14,094,236$52,518$0$10,268,252
77$15,443,286$0$0$11,224,244
78$16,927,150$0$0$12,286,545
79$18,559,491$0$0$13,472,995
80$20,355,362$0$0$14,778,358
81$22,331,350$0$0$16,214,699
82$24,505,731$0$0$17,795,309
83$26,898,641$0$0$19,534,832
84$29,532,268$0$0$21,449,405
85$32,431,058$0$0$23,556,808
86$35,621,950$0$0$25,876,632
87$39,134,625$0$0$28,430,466
88$43,001,789$0$0$31,242,094
89$47,259,479$0$0$34,337,727
90$51,947,407$0$0$37,746,247
91$57,109,328$0$0$41,499,477
92$62,793,458$0$0$45,632,484
93$69,052,928$0$0$50,183,910
94$75,946,281$0$0$55,196,335
95$83,538,030$0$0$60,716,677
96$91,899,262$0$0$66,796,639
97$101,108,311$0$0$73,493,193
98$111,251,496$0$0$80,869,120
99$122,423,935$0$0$88,993,599
100$134,730,443$0$0$97,942,864