Can I retire at age 40 with 723,000?

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 $723,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$59,705$59,173$58,654$58,148$57,653$57,194
2 years$29,557$29,006$28,473$27,956$27,454$26,991
3 years$19,509$18,956$18,424$17,911$17,418$16,966
4 years$14,486$13,935$13,408$12,904$12,423$11,984
5 years$11,473$10,925$10,405$9,912$9,443$9,021
6 years$9,465$8,921$8,409$7,926$7,472$7,066
7 years$8,031$7,492$6,988$6,517$6,077$5,686
8 years$6,956$6,422$5,926$5,467$5,041$4,667
9 years$6,121$5,591$5,104$4,656$4,246$3,887
10 years$5,453$4,929$4,450$4,014$3,617$3,275
11 years$4,906$4,388$3,918$3,493$3,111$2,784
12 years$4,452$3,938$3,477$3,064$2,696$2,384
13 years$4,067$3,559$3,106$2,705$2,351$2,054
14 years$3,738$3,235$2,791$2,401$2,061$1,779
15 years$3,452$2,955$2,520$2,142$1,815$1,547
16 years$3,203$2,711$2,285$1,918$1,604$1,350
17 years$2,983$2,497$2,079$1,723$1,422$1,181
18 years$2,788$2,307$1,898$1,553$1,264$1,036
19 years$2,614$2,138$1,737$1,403$1,127$911
20 years$2,457$1,987$1,594$1,271$1,007$803
21 years$2,316$1,851$1,467$1,153$901$709
22 years$2,187$1,728$1,352$1,049$807$626
23 years$2,070$1,616$1,248$955$725$554
24 years$1,963$1,514$1,154$871$651$491
25 years$1,864$1,421$1,069$795$586$436
26 years$1,773$1,335$992$727$528$387
27 years$1,689$1,257$921$666$476$343
28 years$1,611$1,184$856$610$430$305
29 years$1,539$1,117$796$559$388$272
30 years$1,472$1,055$742$513$350$242
31 years$1,409$997$692$471$317$215
32 years$1,350$944$645$433$287$192
33 years$1,295$894$603$398$259$171
34 years$1,243$847$563$367$235$152
35 years$1,194$803$526$337$213$136
36 years$1,148$763$492$311$193$121
37 years$1,105$724$461$286$175$108
38 years$1,064$688$432$264$158$96
39 years$1,025$655$404$243$144$86
40 years$988$623$379$224$130$77
41 years$954$593$355$207$118$68
42 years$920$565$333$191$107$61
43 years$889$538$313$176$97$55
44 years$859$513$294$163$88$49
45 years$830$489$276$150$80$43
46 years$803$466$259$139$73$39
47 years$777$445$243$128$66$35
48 years$752$425$229$119$60$31
49 years$729$406$215$110$55$28
50 years$706$388$202$101$50$25

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $723,000, adding $6,258 every year, while hoping to spend $55,277 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: 49/23/28 Blend
39$723,000$723,000$723,000$723,000
40$803,201$764,882$753,676$835,898
41$826,313$743,547$720,109$838,128
42$849,930$719,314$683,566$834,590
43$874,045$691,982$643,888$829,670
44$898,649$661,340$600,909$823,264
45$923,728$627,164$554,457$815,262
46$949,269$589,215$504,351$805,546
47$975,251$547,243$450,404$793,991
48$1,001,652$500,983$392,418$780,463
49$1,028,444$450,155$330,187$764,821
50$1,055,594$394,461$263,497$746,914
51$1,083,065$333,590$192,124$726,580
52$1,110,811$267,209$115,834$703,648
53$1,138,781$194,970$34,382$677,936
54$1,166,916$116,503$0$649,248
55$1,195,149$31,419$0$633,076
56$1,223,401$0$0$625,482
57$1,251,585$0$0$631,392
58$1,279,601$0$0$645,120
59$1,307,335$0$0$658,652
60$1,334,661$0$0$671,918
61$1,361,434$0$0$684,838
62$1,387,493$0$0$697,325
63$1,412,656$0$0$709,278
64$1,436,721$0$0$720,586
65$1,459,460$0$0$731,126
66$1,480,618$0$0$740,757
67$1,499,912$0$0$749,324
68$1,517,024$0$0$756,656
69$1,531,601$0$0$762,558
70$1,543,251$0$0$766,817
71$1,551,534$0$0$769,195
72$1,555,965$0$0$769,427
73$1,556,002$0$0$767,218
74$1,551,044$0$0$762,242
75$1,540,426$0$0$754,136
76$1,523,406$0$0$742,500
77$1,499,165$0$0$726,887
78$1,466,793$0$0$706,803
79$1,425,283$0$0$681,704
80$1,373,518$0$0$650,982
81$1,310,263$0$0$613,969
82$1,234,151$0$0$569,923
83$1,143,667$0$0$518,024
84$1,037,139$0$0$457,366
85$912,714$0$0$386,945
86$768,347$0$0$305,654
87$601,774$0$0$212,266
88$410,495$0$0$105,430
89$191,746$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0