Can I retire at age 40 with 745,000?

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 $745,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$61,521$60,973$60,439$59,917$59,407$58,279
2 years$30,456$29,889$29,339$28,806$28,289$27,157
3 years$20,102$19,533$18,984$18,456$17,948$16,847
4 years$14,927$14,359$13,816$13,297$12,801$11,740
5 years$11,822$11,257$10,722$10,213$9,731$8,712
6 years$9,753$9,192$8,665$8,168$7,700$6,725
7 years$8,275$7,720$7,200$6,715$6,262$5,332
8 years$7,168$6,617$6,106$5,633$5,195$4,308
9 years$6,307$5,762$5,260$4,798$4,375$3,532
10 years$5,619$5,079$4,585$4,136$3,728$2,927
11 years$5,056$4,521$4,037$3,600$3,206$2,447
12 years$4,587$4,058$3,583$3,157$2,778$2,060
13 years$4,191$3,667$3,201$2,787$2,423$1,743
14 years$3,851$3,333$2,876$2,474$2,124$1,483
15 years$3,558$3,045$2,597$2,207$1,870$1,266
16 years$3,301$2,794$2,354$1,976$1,653$1,084
17 years$3,074$2,573$2,142$1,775$1,465$931
18 years$2,873$2,378$1,956$1,600$1,303$801
19 years$2,694$2,203$1,790$1,446$1,161$691
20 years$2,532$2,048$1,643$1,309$1,037$596
21 years$2,386$1,907$1,511$1,188$928$516
22 years$2,254$1,780$1,393$1,080$832$447
23 years$2,133$1,665$1,286$984$747$387
24 years$2,022$1,560$1,189$897$671$336
25 years$1,921$1,464$1,102$820$604$292
26 years$1,827$1,376$1,022$749$544$253
27 years$1,741$1,295$949$686$491$220
28 years$1,660$1,220$882$628$443$192
29 years$1,586$1,151$821$576$400$167
30 years$1,516$1,087$764$529$361$145
31 years$1,452$1,028$713$486$327$126
32 years$1,391$972$665$446$295$110
33 years$1,334$921$621$411$267$96
34 years$1,281$873$580$378$242$84
35 years$1,231$828$542$348$219$73
36 years$1,183$786$507$320$199$63
37 years$1,139$746$475$295$180$55
38 years$1,096$709$445$272$163$48
39 years$1,056$674$417$251$148$42
40 years$1,019$642$391$231$134$37
41 years$983$611$366$213$122$32
42 years$948$582$343$197$110$28
43 years$916$554$322$182$100$24
44 years$885$528$303$168$91$21
45 years$856$504$284$155$83$19
46 years$828$481$267$143$75$16
47 years$801$459$251$132$68$14
48 years$775$438$236$122$62$12
49 years$751$418$221$113$56$11
50 years$727$399$208$104$51$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $745,000, adding $5,249 every year, while hoping to spend $55,975 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: 52/26/22 Blend
39$745,000$745,000$745,000$745,000
40$826,404$786,919$775,372$864,087
41$851,141$765,921$741,790$869,652
42$876,524$742,019$705,207$869,498
43$902,561$715,009$665,463$868,157
44$929,258$684,681$622,392$865,537
45$956,619$650,807$575,819$861,538
46$984,647$613,149$525,562$856,057
47$1,013,344$571,456$471,430$848,982
48$1,042,707$525,459$413,226$840,195
49$1,072,735$474,879$350,740$829,570
50$1,103,421$419,415$283,757$816,973
51$1,134,757$358,753$212,050$802,262
52$1,166,731$292,561$135,383$785,287
53$1,199,328$220,487$53,508$765,886
54$1,232,528$142,159$0$743,888
55$1,266,306$57,185$0$727,062
56$1,300,634$0$0$721,185
57$1,335,476$0$0$723,515
58$1,370,790$0$0$742,435
59$1,406,528$0$0$761,558
60$1,442,632$0$0$780,847
61$1,479,038$0$0$800,265
62$1,515,668$0$0$819,766
63$1,552,436$0$0$839,299
64$1,589,243$0$0$858,806
65$1,625,975$0$0$878,221
66$1,662,506$0$0$897,468
67$1,698,688$0$0$916,463
68$1,734,360$0$0$935,110
69$1,769,336$0$0$953,302
70$1,803,408$0$0$970,918
71$1,836,344$0$0$987,823
72$1,867,883$0$0$1,003,865
73$1,897,732$0$0$1,018,875
74$1,925,565$0$0$1,032,663
75$1,951,016$0$0$1,045,018
76$1,973,677$0$0$1,055,705
77$1,993,096$0$0$1,064,461
78$2,008,765$0$0$1,070,994
79$2,020,122$0$0$1,074,978
80$2,026,542$0$0$1,076,054
81$2,027,327$0$0$1,073,819
82$2,021,707$0$0$1,067,829
83$2,008,822$0$0$1,057,589
84$1,987,721$0$0$1,042,550
85$1,957,349$0$0$1,022,106
86$1,916,536$0$0$995,584
87$1,863,985$0$0$962,236
88$1,798,261$0$0$921,237
89$1,717,773$0$0$871,674
90$1,620,763$0$0$812,534
91$1,505,283$0$0$742,698
92$1,369,178$0$0$660,928
93$1,210,068$0$0$565,856
94$1,025,316$0$0$455,968
95$812,013$0$0$329,591
96$566,939$0$0$184,879
97$286,539$0$0$19,788
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0