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%17.1%
1 years$59,870$59,337$58,816$58,308$57,813$56,142
2 years$29,639$29,087$28,552$28,033$27,530$25,860
3 years$19,563$19,008$18,475$17,961$17,466$15,849
4 years$14,526$13,973$13,445$12,940$12,457$10,906
5 years$11,504$10,955$10,434$9,939$9,470$7,988
6 years$9,491$8,946$8,432$7,948$7,493$6,082
7 years$8,053$7,513$7,007$6,535$6,094$4,754
8 years$6,975$6,440$5,943$5,482$5,055$3,786
9 years$6,138$5,607$5,118$4,669$4,257$3,057
10 years$5,468$4,942$4,462$4,025$3,627$2,495
11 years$4,920$4,400$3,929$3,503$3,120$2,053
12 years$4,464$3,949$3,486$3,073$2,704$1,700
13 years$4,078$3,569$3,115$2,713$2,358$1,415
14 years$3,748$3,244$2,799$2,408$2,067$1,183
15 years$3,462$2,963$2,527$2,147$1,820$992
16 years$3,212$2,719$2,291$1,923$1,608$835
17 years$2,992$2,504$2,085$1,728$1,426$704
18 years$2,796$2,314$1,903$1,557$1,268$595
19 years$2,621$2,144$1,742$1,407$1,130$503
20 years$2,464$1,993$1,599$1,274$1,009$427
21 years$2,322$1,856$1,471$1,156$903$362
22 years$2,193$1,733$1,355$1,051$810$307
23 years$2,076$1,620$1,252$958$727$261
24 years$1,968$1,518$1,157$873$653$222
25 years$1,869$1,425$1,072$798$588$189
26 years$1,778$1,339$994$729$530$161
27 years$1,694$1,260$923$668$477$137
28 years$1,616$1,188$858$612$431$117
29 years$1,543$1,120$799$561$389$100
30 years$1,476$1,058$744$515$351$85
31 years$1,413$1,000$694$473$318$72
32 years$1,354$946$647$434$287$62
33 years$1,298$896$604$400$260$53
34 years$1,246$849$565$368$236$45
35 years$1,198$806$528$338$213$38
36 years$1,151$765$494$312$193$33
37 years$1,108$726$462$287$175$28
38 years$1,067$690$433$265$159$24
39 years$1,028$656$405$244$144$20
40 years$991$624$380$225$131$17
41 years$956$594$356$208$119$15
42 years$923$566$334$192$108$13
43 years$891$539$314$177$98$11
44 years$861$514$294$163$89$9
45 years$833$490$276$151$80$8
46 years$805$468$260$139$73$7
47 years$779$446$244$129$66$6
48 years$754$426$229$119$60$5
49 years$731$407$215$110$55$4
50 years$708$389$203$102$50$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $725,000, adding $3,869 every year, while hoping to spend $43,319 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: 83/7/10 Blend
39$725,000$725,000$725,000$725,000
40$802,941$764,516$753,278$868,043
41$838,750$755,886$732,422$902,586
42$876,759$745,382$709,415$934,335
43$917,148$732,865$684,140$967,883
44$960,112$718,190$656,474$1,003,385
45$1,005,865$701,202$626,287$1,041,011
46$1,054,640$681,739$593,445$1,080,952
47$1,106,696$659,626$557,807$1,123,413
48$1,162,312$634,681$519,227$1,168,624
49$1,221,798$606,710$477,551$1,216,836
50$1,285,490$575,508$432,618$1,268,328
51$1,353,759$540,857$384,260$1,323,405
52$1,427,012$502,529$332,302$1,382,403
53$1,505,695$460,280$276,562$1,445,695
54$1,590,297$413,855$216,848$1,513,689
55$1,681,355$362,982$152,960$1,586,837
56$1,779,460$307,375$84,691$1,665,636
57$1,885,260$246,731$11,823$1,750,634
58$1,999,467$180,731$0$1,842,437
59$2,122,863$109,037$0$1,948,745
60$2,256,309$31,293$0$2,065,063
61$2,400,748$0$0$2,190,965
62$2,557,220$0$0$2,331,443
63$2,726,868$0$0$2,486,375
64$2,910,948$0$0$2,654,501
65$3,110,841$0$0$2,837,082
66$3,328,067$0$0$3,035,509
67$3,564,297$0$0$3,251,310
68$3,821,371$0$0$3,486,167
69$4,101,312$0$0$3,741,932
70$4,406,347$0$0$4,020,640
71$4,738,927$0$0$4,324,533
72$5,101,748$0$0$4,656,078
73$5,497,781$0$0$5,017,988
74$5,930,291$0$0$5,413,254
75$6,402,878$0$0$5,845,165
76$6,919,500$0$0$6,317,344
77$7,484,519$0$0$6,833,777
78$8,102,737$0$0$7,398,857
79$8,779,438$0$0$8,017,418
80$9,520,444$0$0$8,694,785
81$10,332,167$0$0$9,436,820
82$11,221,666$0$0$10,249,981
83$12,196,715$0$0$11,141,377
84$13,265,879$0$0$12,118,843
85$14,438,587$0$0$13,191,002
86$15,725,229$0$0$14,367,357
87$17,137,247$0$0$15,658,373
88$18,687,243$0$0$17,075,576
89$20,389,102$0$0$18,631,667
90$22,258,118$0$0$20,340,631
91$24,311,136$0$0$22,217,879
92$26,566,718$0$0$24,280,385
93$29,045,307$0$0$26,546,849
94$31,769,430$0$0$29,037,873
95$34,763,900$0$0$31,776,154
96$38,056,057$0$0$34,786,697
97$41,676,021$0$0$38,097,051
98$45,656,975$0$0$41,737,567
99$50,035,482$0$0$45,741,686
100$54,851,824$0$0$50,146,253