Can I retire at age 40 with 687,000?

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 $687,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$56,732$56,226$55,733$55,252$54,782$54,437
2 years$28,085$27,562$27,055$26,564$26,087$25,739
3 years$18,537$18,012$17,506$17,020$16,551$16,210
4 years$13,764$13,241$12,740$12,262$11,804$11,474
5 years$10,901$10,381$9,887$9,418$8,973$8,655
6 years$8,993$8,477$7,990$7,532$7,100$6,793
7 years$7,631$7,119$6,640$6,192$5,774$5,479
8 years$6,610$6,102$5,631$5,195$4,790$4,507
9 years$5,816$5,313$4,850$4,425$4,034$3,763
10 years$5,181$4,683$4,228$3,814$3,437$3,178
11 years$4,662$4,169$3,723$3,319$2,956$2,708
12 years$4,230$3,742$3,304$2,912$2,562$2,325
13 years$3,864$3,382$2,952$2,570$2,234$2,008
14 years$3,552$3,074$2,652$2,282$1,958$1,744
15 years$3,281$2,808$2,394$2,035$1,724$1,520
16 years$3,044$2,576$2,171$1,822$1,524$1,330
17 years$2,835$2,373$1,975$1,637$1,351$1,167
18 years$2,649$2,192$1,803$1,475$1,201$1,027
19 years$2,484$2,032$1,651$1,333$1,071$906
20 years$2,335$1,888$1,515$1,207$956$800
21 years$2,200$1,759$1,394$1,096$856$709
22 years$2,078$1,642$1,284$996$767$628
23 years$1,967$1,535$1,186$907$689$558
24 years$1,865$1,439$1,097$828$619$496
25 years$1,771$1,350$1,016$756$557$441
26 years$1,685$1,269$942$691$502$393
27 years$1,605$1,194$875$633$452$350
28 years$1,531$1,125$813$580$408$312
29 years$1,462$1,062$757$531$369$278
30 years$1,398$1,003$705$488$333$248
31 years$1,339$948$657$448$301$222
32 years$1,283$897$613$412$272$198
33 years$1,230$849$573$379$246$177
34 years$1,181$805$535$348$223$159
35 years$1,135$763$500$321$202$142
36 years$1,091$725$468$295$183$127
37 years$1,050$688$438$272$166$114
38 years$1,011$654$410$251$150$102
39 years$974$622$384$231$136$91
40 years$939$592$360$213$124$82
41 years$906$563$338$197$112$73
42 years$875$536$317$182$102$65
43 years$845$511$297$168$92$59
44 years$816$487$279$155$84$52
45 years$789$465$262$143$76$47
46 years$763$443$246$132$69$42
47 years$739$423$231$122$63$38
48 years$715$404$217$113$57$34
49 years$692$386$204$104$52$30
50 years$671$368$192$96$47$27

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $687,000, adding $5,437 every year, while hoping to spend $54,194 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: 75/7/18 Blend
39$687,000$687,000$687,000$687,000
40$762,682$726,271$715,623$816,332
41$782,814$704,197$681,934$830,522
42$803,183$679,224$645,301$838,864
43$823,755$651,154$605,566$846,575
44$844,494$619,776$562,568$853,579
45$865,354$584,867$516,136$859,790
46$886,286$546,191$466,093$865,118
47$907,232$503,499$412,251$869,461
48$928,127$456,528$354,419$872,710
49$948,896$404,998$292,392$874,747
50$969,455$348,615$225,959$875,441
51$989,711$287,068$154,900$874,650
52$1,009,556$220,029$78,984$872,220
53$1,028,870$147,150$0$867,980
54$1,047,519$68,064$0$862,137
55$1,065,352$0$0$870,312
56$1,082,199$0$0$878,507
57$1,097,873$0$0$890,960
58$1,112,163$0$0$902,253
59$1,124,832$0$0$912,190
60$1,135,620$0$0$920,555
61$1,144,233$0$0$927,106
62$1,150,348$0$0$931,574
63$1,153,603$0$0$933,660
64$1,153,596$0$0$933,031
65$1,149,882$0$0$929,317
66$1,141,965$0$0$922,111
67$1,129,297$0$0$910,956
68$1,111,268$0$0$895,350
69$1,087,204$0$0$874,733
70$1,056,358$0$0$848,487
71$1,017,900$0$0$815,927
72$970,913$0$0$776,294
73$914,384$0$0$728,748
74$847,188$0$0$672,361
75$768,084$0$0$606,104
76$675,698$0$0$528,842
77$568,510$0$0$439,318
78$444,841$0$0$336,144
79$302,836$0$0$217,784
80$140,444$0$0$82,543
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0