Can I retire at age 40 with 725,000?

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 $725,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.7%
1 years$59,870$59,337$58,816$58,308$57,813$55,563
2 years$29,639$29,087$28,552$28,033$27,530$25,290
3 years$19,563$19,008$18,475$17,961$17,466$15,307
4 years$14,526$13,973$13,445$12,940$12,457$10,395
5 years$11,504$10,955$10,434$9,939$9,470$7,511
6 years$9,491$8,946$8,432$7,948$7,493$5,638
7 years$8,053$7,513$7,007$6,535$6,094$4,342
8 years$6,975$6,440$5,943$5,482$5,055$3,405
9 years$6,138$5,607$5,118$4,669$4,257$2,706
10 years$5,468$4,942$4,462$4,025$3,627$2,172
11 years$4,920$4,400$3,929$3,503$3,120$1,757
12 years$4,464$3,949$3,486$3,073$2,704$1,430
13 years$4,078$3,569$3,115$2,713$2,358$1,170
14 years$3,748$3,244$2,799$2,408$2,067$960
15 years$3,462$2,963$2,527$2,147$1,820$791
16 years$3,212$2,719$2,291$1,923$1,608$653
17 years$2,992$2,504$2,085$1,728$1,426$540
18 years$2,796$2,314$1,903$1,557$1,268$448
19 years$2,621$2,144$1,742$1,407$1,130$371
20 years$2,464$1,993$1,599$1,274$1,009$309
21 years$2,322$1,856$1,471$1,156$903$257
22 years$2,193$1,733$1,355$1,051$810$214
23 years$2,076$1,620$1,252$958$727$178
24 years$1,968$1,518$1,157$873$653$148
25 years$1,869$1,425$1,072$798$588$124
26 years$1,778$1,339$994$729$530$103
27 years$1,694$1,260$923$668$477$86
28 years$1,616$1,188$858$612$431$72
29 years$1,543$1,120$799$561$389$60
30 years$1,476$1,058$744$515$351$50
31 years$1,413$1,000$694$473$318$42
32 years$1,354$946$647$434$287$35
33 years$1,298$896$604$400$260$29
34 years$1,246$849$565$368$236$24
35 years$1,198$806$528$338$213$20
36 years$1,151$765$494$312$193$17
37 years$1,108$726$462$287$175$14
38 years$1,067$690$433$265$159$12
39 years$1,028$656$405$244$144$10
40 years$991$624$380$225$131$8
41 years$956$594$356$208$119$7
42 years$923$566$334$192$108$6
43 years$891$539$314$177$98$5
44 years$861$514$294$163$89$4
45 years$833$490$276$151$80$3
46 years$805$468$260$139$73$3
47 years$779$446$244$129$66$2
48 years$754$426$229$119$60$2
49 years$731$407$215$110$55$2
50 years$708$389$203$102$50$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $725,000, adding $4,548 every year, while hoping to spend $41,842 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: 64/30/6 Blend
39$725,000$725,000$725,000$725,000
40$803,641$765,216$753,979$853,975
41$841,093$758,192$734,717$881,019
42$880,963$749,422$713,409$905,172
43$923,452$738,775$689,939$930,452
44$968,784$726,114$664,192$956,965
45$1,017,200$711,294$636,042$984,829
46$1,068,967$694,160$605,363$1,014,175
47$1,124,377$674,549$572,017$1,045,149
48$1,183,750$652,288$535,866$1,077,914
49$1,247,436$627,194$496,761$1,112,652
50$1,315,820$599,073$454,549$1,149,562
51$1,389,326$567,720$409,068$1,188,869
52$1,468,418$532,918$360,152$1,230,822
53$1,553,604$494,439$307,625$1,275,697
54$1,645,444$452,039$251,303$1,323,802
55$1,744,554$405,463$190,996$1,375,477
56$1,851,608$354,440$126,504$1,431,101
57$1,967,348$298,684$57,618$1,491,095
58$2,092,590$237,892$0$1,555,926
59$2,228,231$171,746$0$1,627,130
60$2,375,257$99,907$0$1,708,265
61$2,534,751$22,021$0$1,796,293
62$2,707,906$0$0$1,891,936
63$2,896,033$0$0$2,016,556
64$3,100,575$0$0$2,159,997
65$3,323,118$0$0$2,316,109
66$3,565,408$0$0$2,486,121
67$3,829,367$0$0$2,671,389
68$4,117,109$0$0$2,873,401
69$4,430,960$0$0$3,093,800
70$4,773,482$0$0$3,334,389
71$5,147,495$0$0$3,597,156
72$5,556,100$0$0$3,884,290
73$6,002,716$0$0$4,198,198
74$6,491,103$0$0$4,541,533
75$7,025,404$0$0$4,917,214
76$7,610,177$0$0$5,328,456
77$8,250,445$0$0$5,778,801
78$8,951,737$0$0$6,272,146
79$9,720,144$0$0$6,812,785
80$10,562,370$0$0$7,405,448
81$11,485,803$0$0$8,055,341
82$12,498,577$0$0$8,768,201
83$13,609,653$0$0$9,550,347
84$14,828,899$0$0$10,408,736
85$16,167,187$0$0$11,351,036
86$17,636,491$0$0$12,385,689
87$19,250,002$0$0$13,521,997
88$21,022,251$0$0$14,770,207
89$22,969,245$0$0$16,141,608
90$25,108,617$0$0$17,648,633
91$27,459,796$0$0$19,304,983
92$30,044,184$0$0$21,125,751
93$32,885,358$0$0$23,127,565
94$36,009,298$0$0$25,328,744
95$39,444,623$0$0$27,749,471
96$43,222,866$0$0$30,411,984
97$47,378,768$0$0$33,340,784
98$51,950,609$0$0$36,562,864
99$56,980,562$0$0$40,107,969
100$62,515,097$0$0$44,008,868