Can I retire at age 40 with 635,000?

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 $635,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$52,438$51,971$51,515$51,070$50,636$50,170
2 years$25,959$25,476$25,007$24,553$24,112$23,643
3 years$17,134$16,649$16,181$15,731$15,298$14,839
4 years$12,723$12,239$11,776$11,334$10,911$10,467
5 years$10,076$9,595$9,139$8,705$8,294$7,866
6 years$8,313$7,835$7,385$6,962$6,563$6,151
7 years$7,053$6,580$6,137$5,724$5,337$4,942
8 years$6,110$5,640$5,205$4,801$4,428$4,049
9 years$5,376$4,911$4,483$4,090$3,729$3,367
10 years$4,789$4,329$3,908$3,525$3,177$2,831
11 years$4,309$3,854$3,441$3,068$2,732$2,403
12 years$3,910$3,459$3,054$2,691$2,368$2,054
13 years$3,572$3,126$2,728$2,376$2,065$1,766
14 years$3,283$2,841$2,451$2,109$1,810$1,526
15 years$3,032$2,595$2,213$1,881$1,594$1,324
16 years$2,813$2,381$2,007$1,684$1,409$1,153
17 years$2,620$2,193$1,826$1,513$1,249$1,007
18 years$2,449$2,027$1,667$1,364$1,110$882
19 years$2,296$1,878$1,526$1,232$990$774
20 years$2,158$1,745$1,400$1,116$884$680
21 years$2,034$1,626$1,288$1,013$791$599
22 years$1,921$1,517$1,187$921$709$528
23 years$1,818$1,419$1,096$839$637$467
24 years$1,724$1,330$1,014$765$572$412
25 years$1,637$1,248$939$699$515$365
26 years$1,557$1,173$871$639$464$323
27 years$1,484$1,104$809$585$418$286
28 years$1,415$1,040$752$536$377$254
29 years$1,352$981$700$491$341$225
30 years$1,293$927$652$451$308$200
31 years$1,237$876$607$414$278$178
32 years$1,186$829$567$381$252$158
33 years$1,137$785$529$350$228$140
34 years$1,092$744$494$322$206$125
35 years$1,049$706$462$296$187$111
36 years$1,009$670$432$273$169$99
37 years$970$636$405$251$153$88
38 years$934$605$379$232$139$78
39 years$900$575$355$214$126$69
40 years$868$547$333$197$114$62
41 years$838$521$312$182$104$55
42 years$808$496$293$168$94$49
43 years$781$472$275$155$85$44
44 years$754$450$258$143$78$39
45 years$729$429$242$132$70$35
46 years$705$410$227$122$64$31
47 years$683$391$214$113$58$27
48 years$661$373$201$104$53$24
49 years$640$356$189$96$48$22
50 years$620$340$177$89$44$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $635,000, adding $6,579 every year, while hoping to spend $53,233 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: 49/36/15 Blend
39$635,000$635,000$635,000$635,000
40$706,556$672,901$663,059$737,938
41$721,985$649,234$628,632$736,603
42$737,204$622,623$591,267$729,108
43$752,135$592,867$550,811$719,796
44$766,691$559,755$507,101$708,513
45$780,773$523,063$459,968$695,096
46$794,271$482,553$409,237$679,369
47$807,063$437,974$354,723$661,142
48$819,011$389,062$296,233$640,211
49$829,961$335,537$233,567$616,357
50$839,741$277,102$166,516$589,342
51$848,160$213,446$94,860$558,911
52$855,005$144,237$18,370$524,791
53$860,038$69,128$0$486,682
54$862,997$0$0$454,392
55$863,587$0$0$426,097
56$861,483$0$0$423,694
57$856,323$0$0$419,601
58$847,707$0$0$413,600
59$835,188$0$0$405,450
60$818,276$0$0$394,883
61$796,421$0$0$381,603
62$769,020$0$0$365,281
63$735,403$0$0$345,554
64$694,826$0$0$322,019
65$646,469$0$0$294,233
66$589,425$0$0$261,702
67$522,688$0$0$223,883
68$445,147$0$0$180,175
69$355,576$0$0$129,912
70$252,616$0$0$72,360
71$134,770$0$0$6,708
72$378$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
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