Can I retire at age 40 with 655,000?

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 $655,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$54,089$53,607$53,137$52,679$52,231$50,660
2 years$26,777$26,278$25,795$25,326$24,872$23,303
3 years$17,674$17,173$16,691$16,227$15,780$14,261
4 years$13,123$12,624$12,147$11,690$11,254$9,798
5 years$10,394$9,897$9,426$8,979$8,555$7,165
6 years$8,575$8,082$7,618$7,181$6,769$5,447
7 years$7,276$6,787$6,331$5,904$5,505$4,251
8 years$6,302$5,818$5,369$4,953$4,567$3,379
9 years$5,545$5,066$4,624$4,218$3,846$2,724
10 years$4,940$4,465$4,031$3,636$3,277$2,218
11 years$4,445$3,975$3,549$3,165$2,819$1,822
12 years$4,033$3,568$3,150$2,776$2,442$1,505
13 years$3,684$3,224$2,814$2,451$2,130$1,251
14 years$3,386$2,931$2,529$2,175$1,867$1,043
15 years$3,128$2,677$2,283$1,940$1,644$873
16 years$2,902$2,456$2,070$1,737$1,453$733
17 years$2,703$2,262$1,883$1,561$1,288$617
18 years$2,526$2,090$1,719$1,407$1,145$520
19 years$2,368$1,937$1,574$1,271$1,021$439
20 years$2,226$1,800$1,445$1,151$912$371
21 years$2,098$1,677$1,329$1,045$816$314
22 years$1,981$1,565$1,225$950$731$266
23 years$1,875$1,464$1,131$865$657$226
24 years$1,778$1,372$1,046$789$590$192
25 years$1,689$1,287$969$721$531$163
26 years$1,606$1,210$898$659$478$138
27 years$1,530$1,139$834$603$431$117
28 years$1,460$1,073$775$553$389$100
29 years$1,394$1,012$722$507$351$85
30 years$1,333$956$672$465$318$72
31 years$1,276$904$627$427$287$61
32 years$1,223$855$585$392$260$52
33 years$1,173$810$546$361$235$44
34 years$1,126$767$510$332$213$38
35 years$1,082$728$477$306$193$32
36 years$1,040$691$446$282$175$27
37 years$1,001$656$418$259$158$23
38 years$964$624$391$239$143$20
39 years$929$593$366$220$130$17
40 years$895$564$343$203$118$14
41 years$864$537$322$188$107$12
42 years$834$511$302$173$97$10
43 years$805$487$283$160$88$9
44 years$778$464$266$148$80$8
45 years$752$443$250$136$73$6
46 years$728$423$235$126$66$6
47 years$704$403$220$116$60$5
48 years$682$385$207$107$54$4
49 years$660$368$195$99$49$3
50 years$640$351$183$92$45$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $655,000, adding $5,468 every year, while hoping to spend $47,306 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: 70/23/7 Blend
39$655,000$655,000$655,000$655,000
40$727,450$692,735$682,583$777,193
41$751,317$676,346$655,116$794,421
42$776,033$657,568$625,144$806,923
43$801,634$636,235$592,532$819,304
44$828,159$612,169$557,141$831,543
45$855,650$585,184$518,824$843,615
46$884,151$555,082$477,428$855,495
47$913,706$521,654$432,794$867,157
48$944,367$484,678$384,756$878,575
49$976,185$443,920$333,138$889,719
50$1,009,217$399,132$277,759$900,560
51$1,043,522$350,055$218,428$911,068
52$1,079,164$296,410$154,948$921,210
53$1,116,211$237,907$87,112$930,956
54$1,154,737$174,237$14,702$940,270
55$1,194,820$105,074$0$949,119
56$1,236,543$30,074$0$962,141
57$1,279,998$0$0$976,103
58$1,325,281$0$0$1,002,827
59$1,372,496$0$0$1,038,635
60$1,421,757$0$0$1,076,001
61$1,473,184$0$0$1,115,019
62$1,526,908$0$0$1,155,788
63$1,583,071$0$0$1,198,417
64$1,641,827$0$0$1,243,024
65$1,703,339$0$0$1,289,735
66$1,767,789$0$0$1,338,688
67$1,835,369$0$0$1,390,033
68$1,906,292$0$0$1,443,931
69$1,980,785$0$0$1,500,558
70$2,059,099$0$0$1,560,105
71$2,141,503$0$0$1,622,781
72$2,228,293$0$0$1,688,811
73$2,319,788$0$0$1,758,443
74$2,416,338$0$0$1,831,944
75$2,518,324$0$0$1,909,607
76$2,626,162$0$0$1,991,753
77$2,740,305$0$0$2,078,729
78$2,861,247$0$0$2,170,917
79$2,989,531$0$0$2,268,734
80$3,125,748$0$0$2,372,634
81$3,270,545$0$0$2,483,115
82$3,424,628$0$0$2,600,722
83$3,588,774$0$0$2,726,051
84$3,763,829$0$0$2,859,756
85$3,950,724$0$0$3,002,551
86$4,150,476$0$0$3,155,221
87$4,364,202$0$0$3,318,625
88$4,593,124$0$0$3,493,707
89$4,838,585$0$0$3,681,498
90$5,102,058$0$0$3,883,135
91$5,385,158$0$0$4,099,861
92$5,689,658$0$0$4,333,044
93$6,017,507$0$0$4,584,184
94$6,370,843$0$0$4,854,930
95$6,752,015$0$0$5,147,090
96$7,163,604$0$0$5,462,655
97$7,608,446$0$0$5,803,811
98$8,089,658$0$0$6,172,959
99$8,610,665$0$0$6,572,741
100$9,175,235$0$0$7,006,060