Can I retire at age 40 with 724,000?

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 $724,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.9%
1 years$59,787$59,255$58,735$58,228$57,733$56,800
2 years$29,598$29,046$28,512$27,994$27,492$26,554
3 years$19,536$18,982$18,449$17,936$17,442$16,529
4 years$14,506$13,954$13,426$12,922$12,440$11,559
5 years$11,489$10,940$10,419$9,925$9,456$8,610
6 years$9,478$8,933$8,420$7,937$7,483$6,671
7 years$8,042$7,502$6,997$6,526$6,085$5,310
8 years$6,966$6,431$5,934$5,474$5,048$4,308
9 years$6,129$5,599$5,111$4,663$4,251$3,546
10 years$5,460$4,935$4,456$4,019$3,622$2,952
11 years$4,913$4,394$3,923$3,498$3,115$2,478
12 years$4,458$3,944$3,482$3,068$2,700$2,096
13 years$4,073$3,564$3,111$2,709$2,354$1,782
14 years$3,743$3,239$2,795$2,405$2,064$1,523
15 years$3,457$2,959$2,523$2,145$1,817$1,306
16 years$3,208$2,715$2,288$1,920$1,606$1,124
17 years$2,988$2,500$2,082$1,725$1,424$970
18 years$2,792$2,311$1,900$1,555$1,266$839
19 years$2,618$2,141$1,740$1,405$1,128$727
20 years$2,461$1,990$1,597$1,272$1,008$631
21 years$2,319$1,853$1,469$1,155$902$549
22 years$2,190$1,730$1,354$1,050$809$478
23 years$2,073$1,618$1,250$956$726$417
24 years$1,965$1,516$1,156$872$652$363
25 years$1,867$1,423$1,071$796$587$317
26 years$1,776$1,337$993$728$529$277
27 years$1,692$1,258$922$667$477$242
28 years$1,614$1,186$857$611$430$212
29 years$1,541$1,119$798$560$388$185
30 years$1,474$1,057$743$514$351$162
31 years$1,411$999$693$472$317$142
32 years$1,352$945$646$434$287$125
33 years$1,297$895$603$399$260$109
34 years$1,245$848$564$367$235$96
35 years$1,196$805$527$338$213$84
36 years$1,150$764$493$311$193$74
37 years$1,106$725$462$287$175$64
38 years$1,065$689$432$264$159$57
39 years$1,027$655$405$244$144$50
40 years$990$624$380$225$130$44
41 years$955$594$356$207$118$38
42 years$922$565$334$191$107$34
43 years$890$539$313$177$97$29
44 years$860$513$294$163$88$26
45 years$832$490$276$151$80$23
46 years$804$467$259$139$73$20
47 years$778$446$244$129$66$17
48 years$753$425$229$119$60$15
49 years$730$406$215$110$55$13
50 years$707$388$202$101$50$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $724,000, adding $3,933 every year, while hoping to spend $37,675 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: 66/6/28 Blend
39$724,000$724,000$724,000$724,000
40$801,905$763,533$752,311$848,679
41$843,613$760,860$737,427$878,055
42$888,313$756,794$720,783$905,594
43$936,270$751,225$702,278$934,872
44$987,775$744,041$681,809$966,064
45$1,043,148$735,118$659,270$999,364
46$1,102,739$724,329$634,545$1,034,986
47$1,166,934$711,537$607,518$1,073,167
48$1,236,156$696,597$578,065$1,114,171
49$1,310,869$679,356$546,055$1,158,289
50$1,391,585$659,652$511,356$1,205,843
51$1,478,865$637,313$473,824$1,257,189
52$1,573,326$612,158$433,314$1,312,723
53$1,675,645$583,994$389,670$1,372,881
54$1,786,569$552,617$342,732$1,438,147
55$1,906,918$517,814$292,332$1,509,054
56$2,037,593$479,356$238,295$1,586,194
57$2,179,586$437,003$180,436$1,670,219
58$2,333,988$390,501$118,565$1,761,853
59$2,502,000$339,581$52,482$1,861,894
60$2,684,942$283,959$0$1,971,224
61$2,884,269$223,335$0$2,096,209
62$3,101,578$157,393$0$2,249,620
63$3,338,632$85,797$0$2,417,020
64$3,597,366$8,196$0$2,599,794
65$3,879,915$0$0$2,799,471
66$4,188,626$0$0$3,022,737
67$4,526,083$0$0$3,267,429
68$4,895,133$0$0$3,535,075
69$5,298,908$0$0$3,827,953
70$5,740,860$0$0$4,148,573
71$6,224,787$0$0$4,499,696
72$6,754,872$0$0$4,884,365
73$7,335,724$0$0$5,305,930
74$7,972,416$0$0$5,768,080
75$8,670,537$0$0$6,274,879
76$9,436,242$0$0$6,830,803
77$10,276,309$0$0$7,440,781
78$11,198,207$0$0$8,110,245
79$12,210,161$0$0$8,845,174
80$13,321,231$0$0$9,652,158
81$14,541,397$0$0$10,538,456
82$15,881,654$0$0$11,512,061
83$17,354,114$0$0$12,581,783
84$18,972,120$0$0$13,757,324
85$20,750,371$0$0$15,049,375
86$22,705,061$0$0$16,469,712
87$24,854,031$0$0$18,031,311
88$27,216,937$0$0$19,748,466
89$29,815,435$0$0$21,636,926
90$32,673,385$0$0$23,714,045
91$35,817,074$0$0$25,998,939
92$39,275,466$0$0$28,512,673
93$43,080,473$0$0$31,278,456
94$47,267,256$0$0$34,321,860
95$51,874,557$0$0$37,671,061
96$56,945,064$0$0$41,357,104
97$62,525,809$0$0$45,414,196
98$68,668,620$0$0$49,880,030
99$75,430,601$0$0$54,796,137
100$82,874,674$0$0$60,208,280