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%12.8%
1 years$59,705$59,173$58,654$58,148$57,653$56,980
2 years$29,557$29,006$28,473$27,956$27,454$26,776
3 years$19,509$18,956$18,424$17,911$17,418$16,757
4 years$14,486$13,935$13,408$12,904$12,423$11,783
5 years$11,473$10,925$10,405$9,912$9,443$8,828
6 years$9,465$8,921$8,409$7,926$7,472$6,881
7 years$8,031$7,492$6,988$6,517$6,077$5,510
8 years$6,956$6,422$5,926$5,467$5,041$4,499
9 years$6,121$5,591$5,104$4,656$4,246$3,728
10 years$5,453$4,929$4,450$4,014$3,617$3,124
11 years$4,906$4,388$3,918$3,493$3,111$2,641
12 years$4,452$3,938$3,477$3,064$2,696$2,249
13 years$4,067$3,559$3,106$2,705$2,351$1,926
14 years$3,738$3,235$2,791$2,401$2,061$1,658
15 years$3,452$2,955$2,520$2,142$1,815$1,433
16 years$3,203$2,711$2,285$1,918$1,604$1,243
17 years$2,983$2,497$2,079$1,723$1,422$1,081
18 years$2,788$2,307$1,898$1,553$1,264$942
19 years$2,614$2,138$1,737$1,403$1,127$823
20 years$2,457$1,987$1,594$1,271$1,007$721
21 years$2,316$1,851$1,467$1,153$901$632
22 years$2,187$1,728$1,352$1,049$807$555
23 years$2,070$1,616$1,248$955$725$487
24 years$1,963$1,514$1,154$871$651$429
25 years$1,864$1,421$1,069$795$586$378
26 years$1,773$1,335$992$727$528$333
27 years$1,689$1,257$921$666$476$294
28 years$1,611$1,184$856$610$430$259
29 years$1,539$1,117$796$559$388$229
30 years$1,472$1,055$742$513$350$202
31 years$1,409$997$692$471$317$179
32 years$1,350$944$645$433$287$158
33 years$1,295$894$603$398$259$140
34 years$1,243$847$563$367$235$124
35 years$1,194$803$526$337$213$109
36 years$1,148$763$492$311$193$97
37 years$1,105$724$461$286$175$86
38 years$1,064$688$432$264$158$76
39 years$1,025$655$404$243$144$67
40 years$988$623$379$224$130$59
41 years$954$593$355$207$118$53
42 years$920$565$333$191$107$47
43 years$889$538$313$176$97$41
44 years$859$513$294$163$88$37
45 years$830$489$276$150$80$32
46 years$803$466$259$139$73$29
47 years$777$445$243$128$66$25
48 years$752$425$229$119$60$23
49 years$729$406$215$110$55$20
50 years$706$388$202$101$50$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $723,000, adding $4,648 every year, while hoping to spend $23,976 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: 58/27/15 Blend
39$723,000$723,000$723,000$723,000
40$801,540$763,221$752,015$844,690
41$857,787$775,109$751,697$886,304
42$918,968$786,775$750,565$928,599
43$985,560$798,185$748,566$974,148
44$1,058,089$809,298$745,646$1,023,267
45$1,137,134$820,074$741,745$1,076,305
46$1,223,333$830,468$736,804$1,133,648
47$1,317,385$840,433$730,759$1,195,721
48$1,420,063$849,919$723,544$1,262,991
49$1,532,215$858,871$715,089$1,335,976
50$1,654,777$867,232$705,320$1,415,246
51$1,788,778$874,940$694,162$1,501,430
52$1,935,351$881,930$681,535$1,595,221
53$2,095,745$888,132$667,354$1,697,384
54$2,271,333$893,472$651,532$1,808,762
55$2,463,628$897,872$633,978$1,930,288
56$2,674,296$901,246$614,594$2,062,985
57$2,905,174$903,506$593,283$2,207,988
58$3,158,281$904,558$569,937$2,366,545
59$3,435,843$904,299$544,447$2,540,032
60$3,740,313$902,623$516,700$2,729,970
61$4,074,389$899,416$486,574$2,938,032
62$4,441,048$894,558$453,945$3,166,067
63$4,843,564$887,921$418,682$3,416,112
64$5,285,547$879,369$380,647$3,690,414
65$5,770,973$868,758$339,699$3,991,452
66$6,304,220$855,935$295,687$4,321,959
67$6,890,114$840,739$248,455$4,684,948
68$7,533,969$822,999$197,842$5,083,743
69$8,241,641$802,532$143,677$5,522,008
70$9,019,580$779,149$85,782$6,003,786
71$9,874,894$752,644$23,972$6,533,532
72$10,815,413$722,802$0$7,116,161
73$11,849,762$689,397$0$7,763,811
74$12,987,447$652,187$0$8,480,266
75$14,238,940$610,918$0$9,268,308
76$15,615,779$565,319$0$10,135,235
77$17,130,676$515,107$0$11,089,090
78$18,797,638$459,981$0$12,138,741
79$20,632,099$399,621$0$13,293,963
80$22,651,063$333,693$0$14,565,529
81$24,873,269$261,841$0$15,965,314
82$27,319,360$183,690$0$17,506,408
83$30,012,087$98,843$0$19,203,238
84$32,976,517$6,882$0$21,071,707
85$36,240,268$0$0$23,129,344
86$39,833,777$0$0$25,422,991
87$43,790,580$0$0$27,950,850
88$48,147,629$0$0$30,734,494
89$52,945,646$0$0$33,799,949
90$58,229,499$0$0$37,175,892
91$64,048,633$0$0$40,893,924
92$70,457,529$0$0$44,988,867
93$77,516,225$0$0$49,499,093
94$85,290,877$0$0$54,466,885
95$93,854,385$0$0$59,938,836
96$103,287,082$0$0$65,966,291
97$113,677,489$0$0$72,605,828
98$125,123,155$0$0$79,919,793
99$137,731,572$0$0$87,976,890
100$151,621,191$0$0$96,852,827