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%18.5%
1 years$59,540$59,009$58,492$57,987$57,494$55,520
2 years$29,475$28,926$28,394$27,878$27,378$25,410
3 years$19,455$18,903$18,373$17,862$17,370$15,468
4 years$14,446$13,896$13,371$12,868$12,388$10,569
5 years$11,441$10,895$10,376$9,884$9,417$7,684
6 years$9,439$8,896$8,386$7,904$7,452$5,806
7 years$8,009$7,471$6,968$6,499$6,060$4,503
8 years$6,937$6,404$5,910$5,452$5,027$3,556
9 years$6,104$5,576$5,090$4,644$4,234$2,847
10 years$5,438$4,915$4,438$4,003$3,607$2,303
11 years$4,893$4,375$3,907$3,484$3,103$1,878
12 years$4,439$3,927$3,467$3,056$2,689$1,541
13 years$4,056$3,549$3,098$2,698$2,345$1,270
14 years$3,727$3,226$2,783$2,395$2,055$1,052
15 years$3,443$2,947$2,513$2,136$1,810$874
16 years$3,194$2,704$2,278$1,912$1,599$728
17 years$2,975$2,490$2,073$1,718$1,418$607
18 years$2,781$2,301$1,893$1,548$1,261$508
19 years$2,607$2,133$1,733$1,399$1,124$425
20 years$2,450$1,982$1,590$1,267$1,004$357
21 years$2,309$1,846$1,463$1,150$898$299
22 years$2,181$1,723$1,348$1,046$805$251
23 years$2,064$1,611$1,245$952$723$211
24 years$1,957$1,510$1,151$869$650$178
25 years$1,859$1,417$1,066$793$585$150
26 years$1,768$1,332$989$725$527$126
27 years$1,685$1,253$918$664$475$106
28 years$1,607$1,181$854$608$428$89
29 years$1,535$1,114$794$558$387$75
30 years$1,468$1,052$740$512$350$63
31 years$1,405$995$690$470$316$54
32 years$1,346$941$644$432$286$45
33 years$1,291$891$601$397$259$38
34 years$1,240$845$561$366$234$32
35 years$1,191$801$525$337$212$27
36 years$1,145$760$491$310$192$23
37 years$1,102$722$460$286$174$19
38 years$1,061$686$430$263$158$16
39 years$1,022$653$403$243$143$14
40 years$986$621$378$224$130$12
41 years$951$591$354$207$118$10
42 years$918$563$332$191$107$8
43 years$887$536$312$176$97$7
44 years$857$511$293$162$88$6
45 years$828$488$275$150$80$5
46 years$801$465$258$139$73$4
47 years$775$444$243$128$66$4
48 years$750$424$228$118$60$3
49 years$727$405$214$109$54$3
50 years$704$387$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 $721,000, adding $5,476 every year, while hoping to spend $32,962 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: 50/20/30 Blend
39$721,000$721,000$721,000$721,000
40$800,190$761,977$750,802$833,154
41$846,739$764,243$740,883$859,087
42$896,930$765,515$729,526$883,566
43$951,101$765,710$716,650$909,544
44$1,009,622$764,738$702,166$937,178
45$1,072,900$762,507$685,985$966,645
46$1,141,382$758,916$668,012$998,141
47$1,215,559$753,858$648,146$1,031,883
48$1,295,971$747,222$626,284$1,068,114
49$1,383,212$738,889$602,317$1,107,102
50$1,477,937$728,731$576,131$1,149,145
51$1,580,862$716,615$547,608$1,194,575
52$1,692,780$702,399$516,622$1,243,759
53$1,814,559$685,932$483,045$1,297,104
54$1,947,157$667,056$446,740$1,355,062
55$2,091,627$645,601$407,565$1,418,135
56$2,249,127$621,390$365,373$1,486,877
57$2,420,933$594,233$320,008$1,561,904
58$2,608,449$563,931$271,309$1,643,897
59$2,813,220$530,272$219,106$1,733,611
60$3,036,946$493,034$163,224$1,831,883
61$3,281,501$451,979$103,479$1,939,636
62$3,548,947$406,858$39,678$2,057,897
63$3,841,553$357,408$0$2,187,797
64$4,161,819$303,349$0$2,339,685
65$4,512,498$244,386$0$2,519,999
66$4,896,620$180,209$0$2,717,630
67$5,317,524$110,488$0$2,934,347
68$5,778,887$34,876$0$3,172,102
69$6,284,755$0$0$3,433,049
70$6,839,590$0$0$3,729,906
71$7,448,302$0$0$4,064,087
72$8,116,302$0$0$4,430,897
73$8,849,548$0$0$4,833,618
74$9,654,605$0$0$5,275,866
75$10,538,703$0$0$5,761,624
76$11,509,808$0$0$6,295,279
77$12,576,695$0$0$6,881,665
78$13,749,030$0$0$7,526,107
79$15,037,463$0$0$8,234,471
80$16,453,726$0$0$9,013,220
81$18,010,746$0$0$9,869,475
82$19,722,761$0$0$10,811,080
83$21,605,462$0$0$11,846,679
84$23,676,134$0$0$12,985,795
85$25,953,822$0$0$14,238,919
86$28,459,511$0$0$15,617,611
87$31,216,319$0$0$17,134,610
88$34,249,721$0$0$18,803,949
89$37,587,784$0$0$20,641,090
90$41,261,434$0$0$22,663,073
91$45,304,746$0$0$24,888,671
92$49,755,268$0$0$27,338,570
93$54,654,370$0$0$30,035,563
94$60,047,639$0$0$33,004,766
95$65,985,305$0$0$36,273,853
96$72,522,716$0$0$39,873,319
97$79,720,861$0$0$43,836,766
98$87,646,942$0$0$48,201,220
99$96,375,013$0$0$53,007,481
100$105,986,671$0$0$58,300,507