Can I retire at age 40 with 740,000?

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 $740,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.1%
1 years$61,109$60,564$60,033$59,515$59,009$57,770
2 years$30,252$29,688$29,142$28,613$28,099$26,857
3 years$19,967$19,402$18,857$18,333$17,827$16,621
4 years$14,826$14,262$13,723$13,208$12,715$11,553
5 years$11,743$11,182$10,650$10,145$9,665$8,551
6 years$9,687$9,131$8,607$8,113$7,648$6,583
7 years$8,220$7,668$7,152$6,670$6,220$5,204
8 years$7,120$6,573$6,066$5,595$5,160$4,193
9 years$6,265$5,723$5,224$4,766$4,345$3,427
10 years$5,581$5,044$4,555$4,108$3,703$2,831
11 years$5,022$4,491$4,010$3,575$3,184$2,359
12 years$4,556$4,031$3,559$3,136$2,759$1,980
13 years$4,163$3,643$3,179$2,769$2,406$1,670
14 years$3,826$3,311$2,857$2,458$2,109$1,416
15 years$3,534$3,025$2,579$2,192$1,857$1,204
16 years$3,278$2,775$2,338$1,963$1,641$1,028
17 years$3,054$2,556$2,128$1,763$1,455$879
18 years$2,854$2,362$1,942$1,589$1,294$754
19 years$2,675$2,189$1,778$1,436$1,153$648
20 years$2,515$2,034$1,632$1,301$1,030$557
21 years$2,370$1,894$1,501$1,180$922$480
22 years$2,238$1,768$1,383$1,073$826$414
23 years$2,119$1,654$1,277$977$742$358
24 years$2,009$1,550$1,181$891$667$309
25 years$1,908$1,454$1,094$814$600$267
26 years$1,815$1,367$1,015$744$540$231
27 years$1,729$1,286$942$681$487$200
28 years$1,649$1,212$876$624$440$173
29 years$1,575$1,143$815$572$397$150
30 years$1,506$1,080$759$525$359$130
31 years$1,442$1,021$708$483$324$113
32 years$1,382$966$661$443$293$98
33 years$1,325$915$617$408$266$85
34 years$1,272$867$576$375$240$74
35 years$1,222$822$539$345$218$64
36 years$1,175$780$504$318$197$56
37 years$1,131$741$472$293$179$48
38 years$1,089$704$442$270$162$42
39 years$1,049$670$414$249$147$36
40 years$1,012$637$388$230$133$32
41 years$976$607$364$212$121$27
42 years$942$578$341$196$110$24
43 years$910$551$320$181$100$21
44 years$879$525$301$167$90$18
45 years$850$500$282$154$82$16
46 years$822$477$265$142$75$14
47 years$796$456$249$131$68$12
48 years$770$435$234$121$61$10
49 years$746$415$220$112$56$9
50 years$722$397$207$104$51$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $740,000, adding $4,712 every year, while hoping to spend $35,988 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: 76/6/18 Blend
39$740,000$740,000$740,000$740,000
40$820,340$781,120$769,650$878,973
41$865,724$781,104$757,143$918,387
42$914,531$779,881$743,010$956,662
43$967,072$777,354$727,159$997,666
44$1,023,689$773,420$709,495$1,041,661
45$1,084,756$767,969$689,914$1,088,935
46$1,150,688$760,886$668,313$1,139,808
47$1,221,935$752,047$644,579$1,194,629
48$1,298,998$741,322$618,597$1,253,788
49$1,382,422$728,573$590,246$1,317,710
50$1,472,809$713,653$559,400$1,386,867
51$1,570,821$696,408$525,925$1,461,780
52$1,677,186$676,673$489,685$1,543,021
53$1,792,703$654,275$450,534$1,631,223
54$1,918,254$629,029$408,321$1,727,083
55$2,054,805$600,740$362,889$1,831,372
56$2,203,423$569,204$314,074$1,944,937
57$2,365,278$534,202$261,702$2,068,715
58$2,541,662$495,503$205,594$2,203,738
59$2,733,994$452,865$145,564$2,351,145
60$2,943,836$406,030$81,415$2,512,192
61$3,172,907$354,725$12,942$2,688,265
62$3,423,100$298,664$0$2,880,891
63$3,696,500$237,542$0$3,103,303
64$3,995,400$171,039$0$3,349,215
65$4,322,327$98,815$0$3,618,231
66$4,680,061$20,514$0$3,912,660
67$5,071,665$0$0$4,235,041
68$5,500,511$0$0$4,592,415
69$5,970,313$0$0$4,985,430
70$6,485,160$0$0$5,416,158
71$7,049,557$0$0$5,888,370
72$7,668,463$0$0$6,406,219
73$8,347,344$0$0$6,974,283
74$9,092,216$0$0$7,597,600
75$9,909,709$0$0$8,281,721
76$10,807,124$0$0$9,032,761
77$11,792,504$0$0$9,857,456
78$12,874,709$0$0$10,763,226
79$14,063,498$0$0$11,758,244
80$15,369,625$0$0$12,851,514
81$16,804,934$0$0$14,052,957
82$18,382,473$0$0$15,373,500
83$20,116,620$0$0$16,825,184
84$22,023,213$0$0$18,421,273
85$24,119,701$0$0$20,176,380
86$26,425,310$0$0$22,106,606
87$28,961,221$0$0$24,229,691
88$31,750,772$0$0$26,565,179
89$34,819,675$0$0$29,134,605
90$38,196,261$0$0$31,961,695
91$41,911,746$0$0$35,072,593
92$46,000,524$0$0$38,496,102
93$50,500,492$0$0$42,263,961
94$55,453,405$0$0$46,411,142
95$60,905,274$0$0$50,976,177
96$66,906,795$0$0$56,001,526
97$73,513,832$0$0$61,533,972
98$80,787,936$0$0$67,625,067
99$88,796,933$0$0$74,331,614
100$97,615,559$0$0$81,716,206