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%12.1%
1 years$59,870$59,337$58,816$58,308$57,813$57,304
2 years$29,639$29,087$28,552$28,033$27,530$27,018
3 years$19,563$19,008$18,475$17,961$17,466$16,966
4 years$14,526$13,973$13,445$12,940$12,457$11,972
5 years$11,504$10,955$10,434$9,939$9,470$9,002
6 years$9,491$8,946$8,432$7,948$7,493$7,044
7 years$8,053$7,513$7,007$6,535$6,094$5,662
8 years$6,975$6,440$5,943$5,482$5,055$4,642
9 years$6,138$5,607$5,118$4,669$4,257$3,862
10 years$5,468$4,942$4,462$4,025$3,627$3,250
11 years$4,920$4,400$3,929$3,503$3,120$2,759
12 years$4,464$3,949$3,486$3,073$2,704$2,360
13 years$4,078$3,569$3,115$2,713$2,358$2,031
14 years$3,748$3,244$2,799$2,408$2,067$1,756
15 years$3,462$2,963$2,527$2,147$1,820$1,525
16 years$3,212$2,719$2,291$1,923$1,608$1,329
17 years$2,992$2,504$2,085$1,728$1,426$1,161
18 years$2,796$2,314$1,903$1,557$1,268$1,018
19 years$2,621$2,144$1,742$1,407$1,130$894
20 years$2,464$1,993$1,599$1,274$1,009$786
21 years$2,322$1,856$1,471$1,156$903$693
22 years$2,193$1,733$1,355$1,051$810$611
23 years$2,076$1,620$1,252$958$727$540
24 years$1,968$1,518$1,157$873$653$478
25 years$1,869$1,425$1,072$798$588$423
26 years$1,778$1,339$994$729$530$375
27 years$1,694$1,260$923$668$477$333
28 years$1,616$1,188$858$612$431$295
29 years$1,543$1,120$799$561$389$262
30 years$1,476$1,058$744$515$351$233
31 years$1,413$1,000$694$473$318$207
32 years$1,354$946$647$434$287$184
33 years$1,298$896$604$400$260$164
34 years$1,246$849$565$368$236$146
35 years$1,198$806$528$338$213$130
36 years$1,151$765$494$312$193$115
37 years$1,108$726$462$287$175$103
38 years$1,067$690$433$265$159$92
39 years$1,028$656$405$244$144$82
40 years$991$624$380$225$131$73
41 years$956$594$356$208$119$65
42 years$923$566$334$192$108$58
43 years$891$539$314$177$98$51
44 years$861$514$294$163$89$46
45 years$833$490$276$151$80$41
46 years$805$468$260$139$73$36
47 years$779$446$244$129$66$32
48 years$754$426$229$119$60$29
49 years$731$407$215$110$55$26
50 years$708$389$203$102$50$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $725,000, adding $6,376 every year, while hoping to spend $37,141 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: 56/16/28 Blend
39$725,000$725,000$725,000$725,000
40$805,527$767,102$755,864$844,100
41$848,173$765,172$741,668$869,413
42$893,924$761,903$725,751$892,584
43$943,058$757,190$708,018$917,078
44$995,878$750,921$688,365$943,034
45$1,052,721$742,979$666,688$970,609
46$1,113,952$733,238$642,876$999,975
47$1,179,975$721,567$616,812$1,031,326
48$1,251,233$707,824$588,376$1,064,876
49$1,328,213$691,862$557,440$1,100,866
50$1,411,449$673,521$523,873$1,139,559
51$1,501,530$652,637$487,536$1,181,252
52$1,599,101$629,032$448,284$1,226,270
53$1,704,874$602,519$405,966$1,274,979
54$1,819,630$572,901$360,424$1,327,782
55$1,944,228$539,968$311,494$1,385,125
56$2,079,613$503,501$259,003$1,447,506
57$2,226,825$463,264$202,771$1,515,476
58$2,387,008$419,011$142,611$1,589,644
59$2,561,421$370,481$78,327$1,670,686
60$2,751,449$317,397$9,714$1,759,353
61$2,958,615$259,468$0$1,856,474
62$3,184,598$196,386$0$1,981,942
63$3,431,244$127,826$0$2,122,131
64$3,700,584$53,443$0$2,275,332
65$3,994,857$0$0$2,442,865
66$4,316,526$0$0$2,630,961
67$4,668,301$0$0$2,847,013
68$5,053,170$0$0$3,083,456
69$5,474,420$0$0$3,342,317
70$5,935,670$0$0$3,625,828
71$6,440,908$0$0$3,936,448
72$6,994,524$0$0$4,276,888
73$7,601,353$0$0$4,650,127
74$8,266,721$0$0$5,059,453
75$8,996,491$0$0$5,508,483
76$9,797,126$0$0$6,001,202
77$10,675,739$0$0$6,542,001
78$11,640,169$0$0$7,135,714
79$12,699,049$0$0$7,787,669
80$13,861,889$0$0$8,503,732
81$15,139,167$0$0$9,290,368
82$16,542,424$0$0$10,154,698
83$18,084,372$0$0$11,104,565
84$19,779,021$0$0$12,148,613
85$21,641,799$0$0$13,296,363
86$23,689,709$0$0$14,558,303
87$25,941,479$0$0$15,945,991
88$28,417,746$0$0$17,472,160
89$31,141,244$0$0$19,150,838
90$34,137,023$0$0$20,997,481
91$37,432,682$0$0$23,029,120
92$41,058,629$0$0$25,264,517
93$45,048,369$0$0$27,724,347
94$49,438,818$0$0$30,431,390
95$54,270,651$0$0$33,410,745
96$59,588,687$0$0$36,690,067
97$65,442,309$0$0$40,299,831
98$71,885,932$0$0$44,273,612
99$78,979,511$0$0$48,648,410
100$86,789,115$0$0$53,464,992