Can I retire at age 40 with 742,000?

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 $742,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.2%
1 years$61,274$60,728$60,195$59,676$59,168$56,978
2 years$30,333$29,769$29,221$28,690$28,175$25,994
3 years$20,021$19,454$18,908$18,382$17,876$15,771
4 years$14,866$14,301$13,760$13,243$12,749$10,737
5 years$11,774$11,212$10,678$10,172$9,692$7,778
6 years$9,713$9,155$8,630$8,135$7,669$5,855
7 years$8,242$7,689$7,171$6,688$6,237$4,522
8 years$7,139$6,591$6,082$5,610$5,174$3,557
9 years$6,281$5,738$5,238$4,779$4,357$2,835
10 years$5,596$5,058$4,567$4,119$3,713$2,283
11 years$5,035$4,503$4,021$3,585$3,193$1,853
12 years$4,569$4,042$3,568$3,145$2,767$1,513
13 years$4,174$3,652$3,188$2,776$2,413$1,242
14 years$3,836$3,320$2,864$2,464$2,115$1,023
15 years$3,543$3,033$2,586$2,198$1,862$846
16 years$3,287$2,783$2,345$1,968$1,646$701
17 years$3,062$2,563$2,134$1,768$1,459$582
18 years$2,862$2,368$1,948$1,593$1,298$484
19 years$2,683$2,195$1,783$1,440$1,157$403
20 years$2,522$2,039$1,636$1,304$1,033$336
21 years$2,376$1,900$1,505$1,184$924$281
22 years$2,245$1,773$1,387$1,076$829$235
23 years$2,124$1,658$1,281$980$744$196
24 years$2,014$1,554$1,185$894$669$164
25 years$1,913$1,458$1,097$816$602$137
26 years$1,820$1,370$1,018$746$542$115
27 years$1,734$1,290$945$683$489$96
28 years$1,654$1,215$878$626$441$81
29 years$1,580$1,147$817$574$398$68
30 years$1,510$1,083$761$527$360$57
31 years$1,446$1,024$710$484$325$47
32 years$1,385$969$662$445$294$40
33 years$1,329$917$618$409$266$33
34 years$1,276$869$578$376$241$28
35 years$1,226$825$540$346$218$23
36 years$1,178$783$505$319$198$20
37 years$1,134$743$473$294$179$16
38 years$1,092$706$443$271$163$14
39 years$1,052$672$415$250$147$12
40 years$1,014$639$389$230$134$10
41 years$979$608$365$213$121$8
42 years$945$579$342$196$110$7
43 years$912$552$321$181$100$6
44 years$882$526$301$167$91$5
45 years$852$502$283$154$82$4
46 years$824$479$266$143$75$3
47 years$798$457$250$132$68$3
48 years$772$436$235$122$62$2
49 years$748$416$221$113$56$2
50 years$724$398$207$104$51$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $742,000, adding $3,798 every year, while hoping to spend $27,963 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: 26/50/24 Blend
39$742,000$742,000$742,000$742,000
40$821,602$782,276$770,775$836,660
41$875,653$790,855$766,843$857,660
42$934,280$798,917$761,843$877,502
43$997,920$806,408$755,708$898,200
44$1,067,054$813,268$748,371$919,846
45$1,142,211$819,436$739,759$942,540
46$1,223,974$824,845$729,798$966,395
47$1,312,982$829,425$718,409$991,540
48$1,409,940$833,101$705,509$1,018,115
49$1,515,623$835,792$691,013$1,046,280
50$1,630,884$837,414$674,830$1,076,212
51$1,756,663$837,876$656,866$1,108,110
52$1,893,994$837,083$637,022$1,142,196
53$2,044,014$834,933$615,195$1,178,716
54$2,207,977$831,318$591,277$1,217,946
55$2,387,261$826,123$565,156$1,260,193
56$2,583,386$819,227$536,712$1,305,800
57$2,798,022$810,500$505,823$1,355,147
58$3,033,013$799,807$472,360$1,408,659
59$3,290,384$787,002$436,189$1,466,806
60$3,572,370$771,931$397,167$1,530,114
61$3,881,428$754,433$355,149$1,599,165
62$4,220,268$734,334$309,981$1,674,607
63$4,591,872$711,453$261,502$1,757,160
64$4,999,525$685,596$209,545$1,847,621
65$5,446,847$656,560$153,934$1,946,877
66$5,937,822$624,129$94,488$2,055,913
67$6,476,842$588,073$31,015$2,175,818
68$7,068,742$548,152$0$2,307,802
69$7,718,852$504,109$0$2,462,611
70$8,433,039$455,674$0$2,641,414
71$9,217,769$402,563$0$2,837,963
72$10,080,166$344,472$0$3,054,139
73$11,028,076$281,084$0$3,292,024
74$12,070,144$212,062$0$3,553,917
75$13,215,895$137,049$0$3,842,361
76$14,475,822$55,671$0$4,160,164
77$15,861,488$0$0$4,510,431
78$17,385,628$0$0$4,914,455
79$19,062,279$0$0$5,392,742
80$20,906,902$0$0$5,919,091
81$22,936,535$0$0$6,498,380
82$25,169,951$0$0$7,135,986
83$27,627,832$0$0$7,837,834
84$30,332,970$0$0$8,610,450
85$33,310,475$0$0$9,461,027
86$36,588,017$0$0$10,397,491
87$40,196,085$0$0$11,428,575
88$44,168,272$0$0$12,563,901
89$48,541,596$0$0$13,814,073
90$53,356,847$0$0$15,190,776
91$58,658,969$0$0$16,706,884
92$64,497,489$0$0$18,376,584
93$70,926,980$0$0$20,215,509
94$78,007,578$0$0$22,240,888
95$85,805,547$0$0$24,471,702
96$94,393,907$0$0$26,928,870
97$103,853,119$0$0$29,635,442
98$114,271,849$0$0$32,616,819
99$125,747,799$0$0$35,900,991
100$138,388,633$0$0$39,518,802