Can I retire at age 40 with 674,000?

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 $674,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$55,658$55,163$54,679$54,207$53,746$52,725
2 years$27,554$27,040$26,543$26,061$25,593$24,569
3 years$18,187$17,671$17,175$16,697$16,237$15,242
4 years$13,504$12,990$12,499$12,030$11,581$10,621
5 years$10,695$10,184$9,700$9,240$8,803$7,882
6 years$8,823$8,316$7,839$7,389$6,966$6,084
7 years$7,487$6,984$6,514$6,075$5,665$4,823
8 years$6,485$5,987$5,525$5,096$4,700$3,898
9 years$5,706$5,212$4,758$4,341$3,958$3,195
10 years$5,083$4,595$4,148$3,742$3,372$2,648
11 years$4,574$4,090$3,652$3,257$2,900$2,214
12 years$4,150$3,671$3,241$2,856$2,513$1,863
13 years$3,791$3,318$2,896$2,522$2,192$1,577
14 years$3,484$3,016$2,602$2,239$1,921$1,341
15 years$3,218$2,755$2,349$1,996$1,692$1,145
16 years$2,986$2,528$2,130$1,788$1,495$981
17 years$2,781$2,328$1,938$1,606$1,326$842
18 years$2,599$2,151$1,769$1,447$1,179$725
19 years$2,437$1,993$1,620$1,308$1,051$625
20 years$2,291$1,852$1,486$1,185$938$540
21 years$2,159$1,725$1,367$1,075$840$467
22 years$2,039$1,611$1,260$977$753$404
23 years$1,930$1,506$1,163$890$676$350
24 years$1,830$1,411$1,076$812$607$304
25 years$1,738$1,325$997$741$546$264
26 years$1,653$1,245$924$678$492$229
27 years$1,575$1,172$858$621$444$199
28 years$1,502$1,104$798$569$400$173
29 years$1,435$1,041$743$521$362$151
30 years$1,372$984$692$479$327$131
31 years$1,313$930$645$439$295$114
32 years$1,258$880$602$404$267$100
33 years$1,207$833$562$371$242$87
34 years$1,159$790$525$342$219$76
35 years$1,113$749$491$315$198$66
36 years$1,070$711$459$290$180$57
37 years$1,030$675$430$267$163$50
38 years$992$642$402$246$148$44
39 years$956$610$377$227$134$38
40 years$921$581$353$209$121$33
41 years$889$553$331$193$110$29
42 years$858$526$311$178$100$25
43 years$829$501$292$164$91$22
44 years$801$478$274$152$82$19
45 years$774$456$257$140$75$17
46 years$749$435$241$130$68$15
47 years$725$415$227$120$62$13
48 years$701$396$213$111$56$11
49 years$679$378$200$102$51$10
50 years$658$361$188$94$46$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $674,000, adding $3,492 every year, while hoping to spend $24,201 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: 52/30/18 Blend
39$674,000$674,000$674,000$674,000
40$746,350$710,628$700,181$781,312
41$796,728$719,699$697,887$814,774
42$851,433$728,404$694,706$848,330
43$910,882$736,698$690,581$884,301
44$975,532$744,536$685,455$922,924
45$1,045,885$751,867$679,267$964,461
46$1,122,497$758,640$671,954$1,009,201
47$1,205,975$764,797$663,448$1,057,463
48$1,296,992$770,279$653,680$1,109,599
49$1,396,284$775,022$642,578$1,165,999
50$1,504,664$778,957$630,064$1,227,093
51$1,623,028$782,014$616,058$1,293,355
52$1,752,358$784,113$600,477$1,365,310
53$1,893,738$785,175$583,234$1,443,538
54$2,048,363$785,113$564,236$1,528,677
55$2,217,546$783,833$543,387$1,621,433
56$2,402,733$781,238$520,588$1,722,588
57$2,605,518$777,225$495,734$1,833,000
58$2,827,654$771,682$468,714$1,953,621
59$3,071,075$764,494$439,416$2,085,499
60$3,337,906$755,536$407,718$2,229,793
61$3,630,492$744,677$373,496$2,387,781
62$3,951,414$731,778$336,620$2,560,874
63$4,303,514$716,691$296,953$2,750,629
64$4,689,923$699,260$254,352$2,958,764
65$5,114,091$679,319$208,668$3,187,178
66$5,579,817$656,694$159,747$3,437,962
67$6,091,285$631,199$107,425$3,713,428
68$6,653,107$602,639$51,535$4,016,122
69$7,270,360$570,804$0$4,348,859
70$7,948,641$535,477$0$4,716,298
71$8,694,112$496,425$0$5,130,969
72$9,513,564$453,403$0$5,586,778
73$10,414,479$406,152$0$6,087,931
74$11,405,100$354,396$0$6,639,063
75$12,494,506$297,848$0$7,245,287
76$13,692,703$236,200$0$7,912,240
77$15,010,715$169,130$0$8,646,137
78$16,460,687$96,297$0$9,453,830
79$18,056,001$17,339$0$10,342,874
80$19,811,401$0$0$11,321,597
81$21,743,133$0$0$12,421,672
82$23,869,097$0$0$13,638,737
83$26,209,017$0$0$14,978,370
84$28,784,624$0$0$16,453,022
85$31,619,866$0$0$18,076,415
86$34,741,127$0$0$19,863,667
87$38,177,482$0$0$21,831,437
88$41,960,967$0$0$23,998,083
89$46,126,884$0$0$26,383,832
90$50,714,129$0$0$29,010,973
91$55,765,566$0$0$31,904,065
92$61,328,426$0$0$35,090,174
93$67,454,752$0$0$38,599,119
94$74,201,895$0$0$42,463,765
95$81,633,049$0$0$46,720,321
96$89,817,851$0$0$51,408,692
97$98,833,038$0$0$56,572,848
98$108,763,168$0$0$62,261,243
99$119,701,419$0$0$68,527,269
100$131,750,470$0$0$75,429,765