Can I retire at age 40 with 656,000?

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 $656,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.2%
1 years$54,172$53,689$53,219$52,759$52,310$51,191
2 years$26,818$26,318$25,834$25,365$24,910$23,788
3 years$17,701$17,199$16,716$16,252$15,804$14,714
4 years$13,143$12,643$12,165$11,708$11,271$10,222
5 years$10,410$9,913$9,441$8,993$8,568$7,562
6 years$8,588$8,094$7,630$7,192$6,780$5,819
7 years$7,287$6,798$6,340$5,913$5,514$4,597
8 years$6,312$5,827$5,377$4,960$4,574$3,702
9 years$5,553$5,073$4,631$4,225$3,852$3,024
10 years$4,947$4,472$4,038$3,642$3,282$2,497
11 years$4,452$3,981$3,555$3,170$2,823$2,079
12 years$4,039$3,573$3,155$2,780$2,446$1,743
13 years$3,690$3,229$2,818$2,454$2,133$1,470
14 years$3,391$2,935$2,532$2,179$1,870$1,245
15 years$3,133$2,681$2,286$1,943$1,646$1,058
16 years$2,906$2,460$2,073$1,740$1,455$903
17 years$2,707$2,266$1,886$1,563$1,290$772
18 years$2,530$2,094$1,722$1,409$1,147$661
19 years$2,372$1,940$1,576$1,273$1,023$568
20 years$2,230$1,803$1,447$1,153$913$488
21 years$2,101$1,679$1,331$1,046$817$420
22 years$1,984$1,568$1,226$951$733$362
23 years$1,878$1,466$1,132$866$658$312
24 years$1,781$1,374$1,047$790$591$270
25 years$1,691$1,289$970$722$532$233
26 years$1,609$1,212$900$660$479$202
27 years$1,533$1,140$835$604$432$174
28 years$1,462$1,074$777$553$390$151
29 years$1,396$1,014$723$507$352$131
30 years$1,335$957$673$466$318$113
31 years$1,278$905$628$428$288$98
32 years$1,225$856$586$393$260$85
33 years$1,175$811$547$361$235$74
34 years$1,128$769$511$333$213$64
35 years$1,084$729$478$306$193$55
36 years$1,042$692$447$282$175$48
37 years$1,003$657$418$260$158$42
38 years$965$625$392$239$144$36
39 years$930$594$367$221$130$31
40 years$897$565$344$204$118$27
41 years$865$538$322$188$107$24
42 years$835$512$302$173$97$20
43 years$807$488$284$160$88$18
44 years$779$465$266$148$80$15
45 years$754$444$250$137$73$13
46 years$729$423$235$126$66$12
47 years$705$404$221$116$60$10
48 years$683$386$207$108$54$9
49 years$661$368$195$99$49$8
50 years$640$352$183$92$45$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $656,000, adding $3,965 every year, while hoping to spend $42,334 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: 73/15/12 Blend
39$656,000$656,000$656,000$656,000
40$727,002$692,234$682,066$778,006
41$756,113$681,110$659,872$801,139
42$786,775$668,023$635,516$820,847
43$819,100$652,830$608,880$841,283
44$853,213$635,384$579,843$862,509
45$889,249$615,526$548,275$884,592
46$927,354$593,088$514,044$907,607
47$967,688$567,894$477,009$931,640
48$1,010,428$539,756$437,024$956,783
49$1,055,764$508,477$393,937$983,140
50$1,103,906$473,846$347,588$1,010,827
51$1,155,083$435,643$297,811$1,039,973
52$1,209,546$393,634$244,431$1,070,722
53$1,267,567$347,570$187,268$1,103,232
54$1,329,449$297,190$126,131$1,137,680
55$1,395,519$242,218$60,822$1,174,263
56$1,466,137$182,363$0$1,213,200
57$1,541,700$117,315$0$1,255,870
58$1,622,639$46,749$0$1,309,790
59$1,709,430$0$0$1,367,492
60$1,802,594$0$0$1,434,238
61$1,902,704$0$0$1,514,272
62$2,010,386$0$0$1,600,382
63$2,126,330$0$0$1,693,122
64$2,251,294$0$0$1,793,101
65$2,386,108$0$0$1,900,988
66$2,531,687$0$0$2,017,516
67$2,689,033$0$0$2,143,493
68$2,859,252$0$0$2,279,805
69$3,043,554$0$0$2,427,428
70$3,243,274$0$0$2,587,434
71$3,459,878$0$0$2,761,001
72$3,694,978$0$0$2,949,426
73$3,950,347$0$0$3,154,134
74$4,227,936$0$0$3,376,695
75$4,529,890$0$0$3,618,833
76$4,858,571$0$0$3,882,447
77$5,216,577$0$0$4,169,627
78$5,606,765$0$0$4,482,671
79$6,032,283$0$0$4,824,109
80$6,496,593$0$0$5,196,726
81$7,003,506$0$0$5,603,588
82$7,557,219$0$0$6,048,068
83$8,162,351$0$0$6,533,883
84$8,823,986$0$0$7,065,121
85$9,547,724$0$0$7,646,286
86$10,339,729$0$0$8,282,337
87$11,206,790$0$0$8,978,733
88$12,156,382$0$0$9,741,486
89$13,196,738$0$0$10,577,219
90$14,336,922$0$0$11,493,222
91$15,586,920$0$0$12,497,527
92$16,957,728$0$0$13,598,980
93$18,461,458$0$0$14,807,321
94$20,111,451$0$0$16,133,283
95$21,922,402$0$0$17,588,684
96$23,910,496$0$0$19,186,546
97$26,093,564$0$0$20,941,209
98$28,491,247$0$0$22,868,474
99$31,125,183$0$0$24,985,744
100$34,019,206$0$0$27,312,194