Can I retire at age 40 with 638,000?

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 $638,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.6%
1 years$52,685$52,216$51,758$51,311$50,875$50,115
2 years$26,082$25,596$25,125$24,669$24,226$23,462
3 years$17,215$16,727$16,258$15,806$15,370$14,626
4 years$12,783$12,296$11,832$11,387$10,962$10,243
5 years$10,124$9,641$9,182$8,746$8,333$7,642
6 years$8,352$7,872$7,420$6,995$6,594$5,931
7 years$7,087$6,611$6,166$5,751$5,363$4,728
8 years$6,138$5,667$5,229$4,824$4,449$3,843
9 years$5,401$4,934$4,504$4,109$3,746$3,169
10 years$4,812$4,349$3,927$3,542$3,192$2,643
11 years$4,330$3,872$3,457$3,083$2,745$2,223
12 years$3,928$3,475$3,068$2,704$2,379$1,883
13 years$3,589$3,140$2,741$2,387$2,075$1,605
14 years$3,298$2,855$2,463$2,119$1,819$1,374
15 years$3,047$2,608$2,224$1,890$1,601$1,181
16 years$2,827$2,393$2,016$1,692$1,415$1,018
17 years$2,633$2,203$1,835$1,520$1,255$881
18 years$2,461$2,036$1,675$1,370$1,116$763
19 years$2,307$1,887$1,533$1,238$994$663
20 years$2,168$1,754$1,407$1,121$888$577
21 years$2,043$1,633$1,294$1,018$795$503
22 years$1,930$1,525$1,193$925$713$439
23 years$1,827$1,426$1,101$843$640$383
24 years$1,732$1,336$1,019$769$575$335
25 years$1,645$1,254$943$702$517$293
26 years$1,565$1,178$875$642$466$257
27 years$1,491$1,109$812$587$420$225
28 years$1,422$1,045$755$538$379$197
29 years$1,358$986$703$494$342$173
30 years$1,299$931$655$453$309$152
31 years$1,243$880$610$416$280$133
32 years$1,191$833$569$382$253$117
33 years$1,143$789$532$352$229$103
34 years$1,097$747$497$323$207$90
35 years$1,054$709$464$298$188$79
36 years$1,013$673$435$274$170$70
37 years$975$639$407$253$154$61
38 years$939$607$381$233$140$54
39 years$905$578$357$215$127$48
40 years$872$549$334$198$115$42
41 years$841$523$314$183$104$37
42 years$812$498$294$169$95$32
43 years$784$475$276$156$86$28
44 years$758$452$259$144$78$25
45 years$733$431$243$133$71$22
46 years$709$412$229$123$64$19
47 years$686$393$215$113$58$17
48 years$664$375$202$105$53$15
49 years$643$358$190$97$48$13
50 years$623$342$178$89$44$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $638,000, adding $4,834 every year, while hoping to spend $29,240 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: 44/35/21 Blend
39$638,000$638,000$638,000$638,000
40$708,062$674,248$664,359$734,720
41$749,173$676,175$655,504$755,933
42$793,498$677,217$645,372$775,676
43$841,333$677,298$633,890$796,478
44$893,004$676,341$620,981$818,451
45$948,870$674,262$606,564$841,721
46$1,009,325$670,971$590,554$866,429
47$1,074,802$666,374$572,863$892,729
48$1,145,778$660,372$553,400$920,797
49$1,222,775$652,858$532,066$950,827
50$1,306,370$643,720$508,762$983,034
51$1,397,196$632,839$483,382$1,017,660
52$1,495,950$620,088$455,816$1,054,972
53$1,603,398$605,334$425,947$1,095,267
54$1,720,384$588,435$393,656$1,138,877
55$1,847,837$569,241$358,816$1,186,169
56$1,986,776$547,594$321,297$1,237,551
57$2,138,327$523,326$280,960$1,293,479
58$2,303,727$496,259$237,662$1,354,454
59$2,484,336$466,205$191,254$1,421,036
60$2,681,656$432,966$141,578$1,493,845
61$2,897,335$396,332$88,471$1,573,570
62$3,133,191$356,080$31,763$1,660,971
63$3,391,225$311,977$0$1,756,896
64$3,673,640$263,773$0$1,868,724
65$3,982,860$211,208$0$1,999,064
66$4,321,559$154,004$0$2,141,984
67$4,692,677$91,869$0$2,298,804
68$5,099,454$24,494$0$2,470,980
69$5,545,457$0$0$2,660,124
70$6,034,618$0$0$2,886,672
71$6,571,265$0$0$3,145,640
72$7,160,164$0$0$3,429,905
73$7,806,568$0$0$3,742,013
74$8,516,262$0$0$4,084,768
75$9,295,617$0$0$4,461,256
76$10,151,653$0$0$4,874,882
77$11,092,103$0$0$5,329,393
78$12,125,486$0$0$5,828,918
79$13,261,186$0$0$6,378,006
80$14,509,544$0$0$6,981,669
81$15,881,948$0$0$7,645,428
82$17,390,950$0$0$8,375,368
83$19,050,375$0$0$9,178,189
84$20,875,456$0$0$10,061,278
85$22,882,977$0$0$11,032,768
86$25,091,428$0$0$12,101,626
87$27,521,185$0$0$13,277,729
88$30,194,696$0$0$14,571,958
89$33,136,694$0$0$15,996,306
90$36,374,434$0$0$17,563,984
91$39,937,944$0$0$19,289,552
92$43,860,312$0$0$21,189,049
93$48,177,995$0$0$23,280,152
94$52,931,166$0$0$25,582,337
95$58,164,089$0$0$28,117,065
96$63,925,539$0$0$30,907,982
97$70,269,262$0$0$33,981,147
98$77,254,479$0$0$37,365,272
99$84,946,447$0$0$41,091,997
100$93,417,075$0$0$45,196,184