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%18.8%
1 years$59,870$59,337$58,816$58,308$57,813$55,761
2 years$29,639$29,087$28,552$28,033$27,530$25,485
3 years$19,563$19,008$18,475$17,961$17,466$15,492
4 years$14,526$13,973$13,445$12,940$12,457$10,569
5 years$11,504$10,955$10,434$9,939$9,470$7,672
6 years$9,491$8,946$8,432$7,948$7,493$5,788
7 years$8,053$7,513$7,007$6,535$6,094$4,480
8 years$6,975$6,440$5,943$5,482$5,055$3,532
9 years$6,138$5,607$5,118$4,669$4,257$2,823
10 years$5,468$4,942$4,462$4,025$3,627$2,279
11 years$4,920$4,400$3,929$3,503$3,120$1,855
12 years$4,464$3,949$3,486$3,073$2,704$1,519
13 years$4,078$3,569$3,115$2,713$2,358$1,250
14 years$3,748$3,244$2,799$2,408$2,067$1,032
15 years$3,462$2,963$2,527$2,147$1,820$856
16 years$3,212$2,719$2,291$1,923$1,608$711
17 years$2,992$2,504$2,085$1,728$1,426$592
18 years$2,796$2,314$1,903$1,557$1,268$494
19 years$2,621$2,144$1,742$1,407$1,130$413
20 years$2,464$1,993$1,599$1,274$1,009$345
21 years$2,322$1,856$1,471$1,156$903$289
22 years$2,193$1,733$1,355$1,051$810$242
23 years$2,076$1,620$1,252$958$727$203
24 years$1,968$1,518$1,157$873$653$171
25 years$1,869$1,425$1,072$798$588$143
26 years$1,778$1,339$994$729$530$120
27 years$1,694$1,260$923$668$477$101
28 years$1,616$1,188$858$612$431$85
29 years$1,543$1,120$799$561$389$71
30 years$1,476$1,058$744$515$351$60
31 years$1,413$1,000$694$473$318$50
32 years$1,354$946$647$434$287$42
33 years$1,298$896$604$400$260$36
34 years$1,246$849$565$368$236$30
35 years$1,198$806$528$338$213$25
36 years$1,151$765$494$312$193$21
37 years$1,108$726$462$287$175$18
38 years$1,067$690$433$265$159$15
39 years$1,028$656$405$244$144$13
40 years$991$624$380$225$131$11
41 years$956$594$356$208$119$9
42 years$923$566$334$192$108$8
43 years$891$539$314$177$98$6
44 years$861$514$294$163$89$5
45 years$833$490$276$151$80$5
46 years$805$468$260$139$73$4
47 years$779$446$244$129$66$3
48 years$754$426$229$119$60$3
49 years$731$407$215$110$55$2
50 years$708$389$203$102$50$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $725,000, adding $6,962 every year, while hoping to spend $29,930 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: 68/13/19 Blend
39$725,000$725,000$725,000$725,000
40$806,131$767,706$756,469$856,729
41$856,511$773,479$749,965$897,196
42$911,027$778,531$742,241$937,302
43$970,069$782,796$733,223$980,441
44$1,034,065$786,202$722,835$1,026,910
45$1,103,489$788,675$710,999$1,077,037
46$1,178,857$790,133$697,630$1,131,182
47$1,260,742$790,491$682,642$1,189,745
48$1,349,772$789,658$665,944$1,253,167
49$1,446,635$787,538$647,440$1,321,932
50$1,552,093$784,029$627,031$1,396,578
51$1,666,982$779,022$604,612$1,477,694
52$1,792,222$772,401$580,073$1,565,935
53$1,928,825$764,045$553,302$1,662,019
54$2,077,906$753,824$524,179$1,766,741
55$2,240,692$741,601$492,578$1,880,978
56$2,418,533$727,231$458,371$2,005,696
57$2,612,918$710,559$421,420$2,141,961
58$2,825,481$691,423$381,584$2,290,951
59$3,058,027$669,649$338,714$2,453,964
60$3,312,540$645,055$292,654$2,632,431
61$3,591,204$617,448$243,243$2,827,932
62$3,896,427$586,623$190,312$3,042,209
63$4,230,858$552,364$133,683$3,277,185
64$4,597,417$514,441$73,173$3,534,979
65$4,999,318$472,613$8,589$3,817,929
66$5,440,101$426,623$0$4,128,614
67$5,923,665$376,202$0$4,482,110
68$6,454,307$321,064$0$4,871,976
69$7,036,756$260,906$0$5,299,972
70$7,676,225$195,410$0$5,769,959
71$8,378,454$124,239$0$6,286,194
72$9,149,767$47,037$0$6,853,366
73$9,997,129$0$0$7,476,644
74$10,928,217$0$0$8,166,957
75$11,951,484$0$0$8,933,053
76$13,076,245$0$0$9,775,182
77$14,312,761$0$0$10,701,033
78$15,672,338$0$0$11,719,078
79$17,167,432$0$0$12,838,649
80$18,811,766$0$0$14,070,030
81$20,620,459$0$0$15,424,550
82$22,610,170$0$0$16,914,691
83$24,799,255$0$0$18,554,206
84$27,207,936$0$0$20,358,251
85$29,858,495$0$0$22,343,520
86$32,775,486$0$0$24,528,412
87$35,985,959$0$0$26,933,197
88$39,519,723$0$0$29,580,211
89$43,409,621$0$0$32,494,065
90$47,691,844$0$0$35,701,877
91$52,406,268$0$0$39,233,529
92$57,596,834$0$0$43,121,946
93$63,311,960$0$0$47,403,410
94$69,604,996$0$0$52,117,898
95$76,534,731$0$0$57,309,464
96$84,165,945$0$0$63,026,648
97$92,570,020$0$0$69,322,941
98$101,825,613$0$0$76,257,285
99$112,019,401$0$0$83,894,629
100$123,246,894$0$0$92,306,544