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%18.8%
1 years$53,676$53,198$52,732$52,276$51,832$49,993
2 years$26,572$26,078$25,598$25,133$24,682$22,849
3 years$17,539$17,042$16,564$16,103$15,659$13,889
4 years$13,023$12,528$12,054$11,601$11,168$9,475
5 years$10,314$9,822$9,354$8,911$8,490$6,879
6 years$8,509$8,020$7,560$7,126$6,718$5,189
7 years$7,220$6,735$6,282$5,859$5,463$4,017
8 years$6,254$5,773$5,328$4,915$4,532$3,167
9 years$5,503$5,027$4,589$4,186$3,817$2,531
10 years$4,902$4,431$4,001$3,609$3,252$2,043
11 years$4,411$3,945$3,522$3,141$2,797$1,663
12 years$4,002$3,540$3,126$2,755$2,424$1,362
13 years$3,656$3,200$2,793$2,432$2,114$1,120
14 years$3,360$2,908$2,509$2,159$1,853$926
15 years$3,104$2,657$2,266$1,925$1,631$767
16 years$2,880$2,438$2,054$1,724$1,442$638
17 years$2,682$2,245$1,869$1,549$1,278$531
18 years$2,507$2,074$1,706$1,396$1,137$443
19 years$2,350$1,923$1,562$1,261$1,013$370
20 years$2,209$1,786$1,433$1,142$905$310
21 years$2,082$1,664$1,319$1,037$810$259
22 years$1,966$1,553$1,215$943$726$217
23 years$1,861$1,453$1,122$858$652$182
24 years$1,764$1,361$1,038$783$586$153
25 years$1,676$1,277$961$715$527$128
26 years$1,594$1,201$891$654$475$108
27 years$1,519$1,130$828$598$428$91
28 years$1,449$1,065$769$548$386$76
29 years$1,384$1,004$716$503$349$64
30 years$1,323$949$667$461$315$54
31 years$1,267$897$622$424$285$45
32 years$1,214$848$580$390$258$38
33 years$1,164$803$542$358$233$32
34 years$1,117$762$506$330$211$27
35 years$1,074$722$473$303$191$23
36 years$1,032$686$443$279$173$19
37 years$993$651$414$257$157$16
38 years$957$619$388$237$142$14
39 years$922$588$364$219$129$11
40 years$889$560$341$202$117$10
41 years$857$533$319$186$106$8
42 years$828$508$300$172$96$7
43 years$799$484$281$159$87$6
44 years$772$461$264$146$79$5
45 years$747$440$248$135$72$4
46 years$722$419$233$125$65$3
47 years$699$400$219$115$59$3
48 years$676$382$206$107$54$2
49 years$655$365$193$99$49$2
50 years$635$348$182$91$45$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $650,000, adding $5,131 every year, while hoping to spend $34,913 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: 80/12/8 Blend
39$650,000$650,000$650,000$650,000
40$721,593$687,143$677,068$778,156
41$758,048$683,665$662,602$812,488
42$797,052$678,848$646,482$845,040
43$838,826$672,587$628,615$879,712
44$883,617$664,774$608,904$916,699
45$931,693$655,295$587,249$956,214
46$983,347$644,026$563,544$998,494
47$1,038,904$630,839$537,678$1,043,797
48$1,098,718$615,596$509,536$1,092,411
49$1,163,180$598,152$478,997$1,144,650
50$1,232,716$578,354$445,936$1,200,863
51$1,307,799$556,039$410,220$1,261,434
52$1,388,944$531,034$371,713$1,326,784
53$1,476,721$503,159$330,269$1,397,380
54$1,571,752$472,220$285,739$1,473,737
55$1,674,726$438,014$237,967$1,556,421
56$1,786,397$400,326$186,787$1,646,057
57$1,907,595$358,927$132,030$1,743,335
58$2,039,233$313,578$73,517$1,849,014
59$2,182,316$264,024$11,061$1,963,933
60$2,337,948$209,997$0$2,089,016
61$2,507,346$151,214$0$2,230,027
62$2,691,846$87,374$0$2,384,663
63$2,892,920$18,162$0$2,553,235
64$3,112,190$0$0$2,737,129
65$3,351,437$0$0$2,945,368
66$3,612,624$0$0$3,175,339
67$3,897,911$0$0$3,426,547
68$4,209,676$0$0$3,701,089
69$4,550,539$0$0$4,001,274
70$4,923,381$0$0$4,329,641
71$5,331,376$0$0$4,688,989
72$5,778,020$0$0$5,082,399
73$6,267,161$0$0$5,513,263
74$6,803,037$0$0$5,985,318
75$7,390,317$0$0$6,502,679
76$8,034,141$0$0$7,069,876
77$8,740,169$0$0$7,691,900
78$9,514,639$0$0$8,374,250
79$10,364,419$0$0$9,122,979
80$11,297,074$0$0$9,944,757
81$12,320,937$0$0$10,846,931
82$13,445,188$0$0$11,837,592
83$14,679,940$0$0$12,925,655
84$16,036,331$0$0$14,120,940
85$17,526,635$0$0$15,434,265
86$19,164,369$0$0$16,877,549
87$20,964,427$0$0$18,463,922
88$22,943,218$0$0$20,207,847
89$25,118,819$0$0$22,125,262
90$27,511,147$0$0$24,233,723
91$30,142,143$0$0$26,552,576
92$33,035,984$0$0$29,103,133
93$36,219,306$0$0$31,908,876
94$39,721,456$0$0$34,995,677
95$43,574,772$0$0$38,392,043
96$47,814,880$0$0$42,129,383
97$52,481,036$0$0$46,242,304
98$57,616,495$0$0$50,768,938
99$63,268,917$0$0$55,751,301
100$69,490,814$0$0$61,235,689