Can I retire at age 40 with 607,000?

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 $607,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.3%
1 years$50,125$49,679$49,243$48,818$48,403$47,937
2 years$24,815$24,352$23,905$23,470$23,049$22,580
3 years$16,379$15,915$15,468$15,038$14,623$14,165
4 years$12,162$11,699$11,257$10,834$10,429$9,986
5 years$9,632$9,172$8,736$8,321$7,928$7,501
6 years$7,946$7,490$7,060$6,655$6,273$5,863
7 years$6,742$6,290$5,867$5,471$5,102$4,708
8 years$5,840$5,392$4,975$4,590$4,233$3,855
9 years$5,139$4,694$4,285$3,909$3,564$3,203
10 years$4,578$4,138$3,736$3,370$3,037$2,692
11 years$4,119$3,684$3,289$2,933$2,612$2,283
12 years$3,737$3,306$2,919$2,572$2,263$1,950
13 years$3,414$2,988$2,608$2,271$1,974$1,676
14 years$3,138$2,716$2,343$2,016$1,730$1,447
15 years$2,899$2,481$2,116$1,798$1,523$1,255
16 years$2,689$2,276$1,918$1,610$1,346$1,092
17 years$2,505$2,096$1,745$1,446$1,194$953
18 years$2,341$1,937$1,593$1,304$1,061$834
19 years$2,195$1,795$1,459$1,178$946$731
20 years$2,063$1,668$1,339$1,067$845$643
21 years$1,944$1,554$1,231$968$756$565
22 years$1,836$1,451$1,135$880$678$498
23 years$1,738$1,357$1,048$802$609$440
24 years$1,648$1,271$969$731$547$388
25 years$1,565$1,193$898$668$492$343
26 years$1,489$1,121$832$611$443$304
27 years$1,418$1,055$773$559$400$269
28 years$1,353$994$719$512$361$238
29 years$1,292$938$669$470$326$211
30 years$1,236$886$623$431$294$187
31 years$1,183$837$581$396$266$166
32 years$1,133$792$542$364$241$148
33 years$1,087$750$506$334$218$131
34 years$1,044$711$473$308$197$116
35 years$1,003$675$442$283$179$103
36 years$964$640$413$261$162$92
37 years$928$608$387$240$147$82
38 years$893$578$362$222$133$73
39 years$861$549$339$204$121$65
40 years$830$523$318$188$109$57
41 years$801$498$298$174$99$51
42 years$773$474$280$160$90$45
43 years$746$452$263$148$82$40
44 years$721$430$247$137$74$36
45 years$697$410$231$126$67$32
46 years$674$392$217$117$61$29
47 years$653$374$204$108$56$25
48 years$632$357$192$100$50$23
49 years$612$341$180$92$46$20
50 years$593$325$170$85$42$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $607,000, adding $4,624 every year, while hoping to spend $49,217 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: 59/20/21 Blend
39$607,000$607,000$607,000$607,000
40$673,684$641,513$632,104$709,426
41$690,033$620,580$600,913$713,296
42$706,400$596,973$567,028$711,757
43$722,735$570,507$530,306$708,986
44$738,982$540,989$490,598$704,874
45$755,075$508,214$447,750$699,301
46$770,942$471,966$401,599$692,140
47$786,501$432,016$351,976$683,253
48$801,661$388,121$298,704$672,492
49$816,317$340,026$241,597$659,694
50$830,354$287,460$180,463$644,687
51$843,643$230,138$115,101$627,283
52$856,037$167,757$45,300$607,278
53$867,376$100,000$0$584,453
54$877,477$26,529$0$565,110
55$886,140$0$0$553,710
56$893,141$0$0$551,532
57$898,229$0$0$553,922
58$901,126$0$0$554,858
59$901,525$0$0$554,139
60$899,081$0$0$551,542
61$893,414$0$0$546,817
62$884,102$0$0$539,690
63$870,677$0$0$529,854
64$852,618$0$0$516,971
65$829,351$0$0$500,666
66$800,239$0$0$480,523
67$764,575$0$0$456,082
68$721,579$0$0$426,834
69$670,387$0$0$392,217
70$610,042$0$0$351,607
71$539,487$0$0$304,315
72$457,552$0$0$249,579
73$362,947$0$0$186,559
74$254,241$0$0$114,324
75$129,856$0$0$31,846
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0