Can I retire at age 40 with 650,000?

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 $650,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.8%
1 years$53,676$53,198$52,732$52,276$51,832$50,599
2 years$26,572$26,078$25,598$25,133$24,682$23,447
3 years$17,539$17,042$16,564$16,103$15,659$14,461
4 years$13,023$12,528$12,054$11,601$11,168$10,016
5 years$10,314$9,822$9,354$8,911$8,490$7,387
6 years$8,509$8,020$7,560$7,126$6,718$5,665
7 years$7,220$6,735$6,282$5,859$5,463$4,461
8 years$6,254$5,773$5,328$4,915$4,532$3,580
9 years$5,503$5,027$4,589$4,186$3,817$2,913
10 years$4,902$4,431$4,001$3,609$3,252$2,397
11 years$4,411$3,945$3,522$3,141$2,797$1,988
12 years$4,002$3,540$3,126$2,755$2,424$1,661
13 years$3,656$3,200$2,793$2,432$2,114$1,394
14 years$3,360$2,908$2,509$2,159$1,853$1,176
15 years$3,104$2,657$2,266$1,925$1,631$996
16 years$2,880$2,438$2,054$1,724$1,442$846
17 years$2,682$2,245$1,869$1,549$1,278$720
18 years$2,507$2,074$1,706$1,396$1,137$614
19 years$2,350$1,923$1,562$1,261$1,013$525
20 years$2,209$1,786$1,433$1,142$905$449
21 years$2,082$1,664$1,319$1,037$810$385
22 years$1,966$1,553$1,215$943$726$330
23 years$1,861$1,453$1,122$858$652$284
24 years$1,764$1,361$1,038$783$586$244
25 years$1,676$1,277$961$715$527$210
26 years$1,594$1,201$891$654$475$180
27 years$1,519$1,130$828$598$428$155
28 years$1,449$1,065$769$548$386$134
29 years$1,384$1,004$716$503$349$115
30 years$1,323$949$667$461$315$99
31 years$1,267$897$622$424$285$86
32 years$1,214$848$580$390$258$74
33 years$1,164$803$542$358$233$64
34 years$1,117$762$506$330$211$55
35 years$1,074$722$473$303$191$47
36 years$1,032$686$443$279$173$41
37 years$993$651$414$257$157$35
38 years$957$619$388$237$142$30
39 years$922$588$364$219$129$26
40 years$889$560$341$202$117$23
41 years$857$533$319$186$106$20
42 years$828$508$300$172$96$17
43 years$799$484$281$159$87$15
44 years$772$461$264$146$79$13
45 years$747$440$248$135$72$11
46 years$722$419$233$125$65$9
47 years$699$400$219$115$59$8
48 years$676$382$206$107$54$7
49 years$655$365$193$99$49$6
50 years$635$348$182$91$45$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $650,000, adding $4,132 every year, while hoping to spend $41,284 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: 33/50/17 Blend
39$650,000$650,000$650,000$650,000
40$720,562$686,112$676,037$740,410
41$750,134$675,806$654,759$745,096
42$781,338$663,611$631,383$746,029
43$814,297$649,391$605,798$746,153
44$849,147$633,002$577,883$745,420
45$886,032$614,292$547,515$743,781
46$925,114$593,098$514,563$741,188
47$966,565$569,250$478,891$737,590
48$1,010,579$542,567$440,357$732,937
49$1,057,362$512,857$398,814$727,178
50$1,107,144$479,918$354,105$720,264
51$1,160,175$443,536$306,069$712,144
52$1,216,728$403,485$254,538$702,769
53$1,277,103$359,524$199,334$692,093
54$1,341,629$311,402$140,273$680,070
55$1,410,666$258,852$77,163$666,658
56$1,484,608$201,590$9,802$651,815
57$1,563,890$139,320$0$635,508
58$1,648,985$71,725$0$628,966
59$1,740,416$0$0$623,534
60$1,838,755$0$0$618,294
61$1,944,630$0$0$655,209
62$2,058,732$0$0$695,066
63$2,181,817$0$0$738,139
64$2,314,721$0$0$784,728
65$2,458,356$0$0$835,166
66$2,613,730$0$0$889,816
67$2,781,947$0$0$949,078
68$2,964,224$0$0$1,013,392
69$3,161,896$0$0$1,083,244
70$3,376,433$0$0$1,159,164
71$3,609,452$0$0$1,241,739
72$3,862,730$0$0$1,331,614
73$4,138,224$0$0$1,429,497
74$4,438,085$0$0$1,536,169
75$4,764,681$0$0$1,652,489
76$5,120,619$0$0$1,779,402
77$5,508,765$0$0$1,917,948
78$5,932,277$0$0$2,069,273
79$6,394,627$0$0$2,234,638
80$6,899,641$0$0$2,415,430
81$7,451,528$0$0$2,613,178
82$8,054,924$0$0$2,829,564
83$8,714,931$0$0$3,066,442
84$9,437,169$0$0$3,325,852
85$10,227,824$0$0$3,610,041
86$11,093,710$0$0$3,921,483
87$12,042,330$0$0$4,262,903
88$13,081,947$0$0$4,637,303
89$14,221,661$0$0$5,047,989
90$15,471,494$0$0$5,498,601
91$16,842,485$0$0$5,993,152
92$18,346,794$0$0$6,536,057
93$19,997,814$0$0$7,132,185
94$21,810,296$0$0$7,786,895
95$23,800,491$0$0$8,506,094
96$25,986,301$0$0$9,296,286
97$28,387,446$0$0$10,164,639
98$31,025,650$0$0$11,119,048
99$33,924,845$0$0$12,168,211
100$37,111,397$0$0$13,321,712