Can I retire at age 40 with 688,000?

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 $688,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$56,814$56,308$55,815$55,333$54,862$53,085
2 years$28,126$27,602$27,094$26,602$26,125$24,351
3 years$18,564$18,038$17,532$17,044$16,575$14,860
4 years$13,785$13,260$12,759$12,279$11,821$10,178
5 years$10,917$10,396$9,901$9,432$8,986$7,420
6 years$9,007$8,489$8,002$7,543$7,111$5,622
7 years$7,642$7,129$6,649$6,201$5,783$4,372
8 years$6,619$6,111$5,639$5,202$4,797$3,463
9 years$5,824$5,321$4,857$4,431$4,040$2,781
10 years$5,189$4,690$4,235$3,820$3,442$2,257
11 years$4,669$4,175$3,728$3,324$2,961$1,846
12 years$4,236$3,747$3,309$2,916$2,566$1,520
13 years$3,870$3,387$2,956$2,574$2,237$1,257
14 years$3,557$3,078$2,656$2,285$1,961$1,045
15 years$3,285$2,812$2,398$2,038$1,727$871
16 years$3,048$2,580$2,174$1,825$1,526$728
17 years$2,839$2,376$1,978$1,639$1,353$610
18 years$2,653$2,196$1,806$1,477$1,203$512
19 years$2,487$2,035$1,653$1,335$1,072$430
20 years$2,338$1,891$1,517$1,209$958$362
21 years$2,204$1,761$1,396$1,097$857$305
22 years$2,081$1,644$1,286$998$768$257
23 years$1,970$1,538$1,188$909$690$217
24 years$1,868$1,441$1,098$829$620$183
25 years$1,774$1,352$1,017$757$558$155
26 years$1,687$1,271$944$692$502$131
27 years$1,607$1,196$876$633$453$111
28 years$1,533$1,127$814$580$409$94
29 years$1,465$1,063$758$532$369$79
30 years$1,400$1,004$706$488$334$67
31 years$1,341$949$658$449$302$57
32 years$1,285$898$614$412$273$48
33 years$1,232$850$573$379$247$41
34 years$1,183$806$536$349$223$34
35 years$1,136$765$501$321$202$29
36 years$1,093$726$469$296$183$25
37 years$1,051$689$439$272$166$21
38 years$1,012$655$411$251$151$18
39 years$976$623$385$232$137$15
40 years$941$593$361$214$124$13
41 years$907$564$338$197$112$11
42 years$876$537$317$182$102$9
43 years$846$512$298$168$93$8
44 years$817$488$279$155$84$7
45 years$790$465$262$143$76$6
46 years$764$444$246$132$69$5
47 years$740$424$232$122$63$4
48 years$716$404$218$113$57$3
49 years$693$386$204$104$52$3
50 years$672$369$192$96$47$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $688,000, adding $2,018 every year, while hoping to spend $57,429 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: 33/45/22 Blend
39$688,000$688,000$688,000$688,000
40$760,258$723,794$713,130$780,155
41$776,700$698,155$675,915$769,556
42$792,894$669,336$635,530$752,780
43$808,755$637,120$591,806$733,524
44$824,186$601,276$544,569$711,605
45$839,079$561,564$493,638$686,828
46$853,311$517,727$438,821$658,984
47$866,748$469,495$379,920$627,852
48$879,236$416,580$316,728$593,193
49$890,607$358,682$249,027$554,755
50$900,671$295,479$176,592$512,266
51$909,217$226,635$99,185$465,437
52$916,010$151,793$16,560$413,957
53$920,789$70,576$0$357,496
54$923,262$0$0$312,510
55$923,108$0$0$275,673
56$919,966$0$0$272,639
57$913,438$0$0$268,315
58$903,083$0$0$262,538
59$888,412$0$0$255,127
60$868,879$0$0$245,884
61$843,885$0$0$234,586
62$812,763$0$0$220,991
63$774,774$0$0$204,827
64$729,102$0$0$185,794
65$674,844$0$0$163,563
66$610,999$0$0$137,767
67$536,463$0$0$108,002
68$450,013$0$0$73,820
69$350,299$0$0$34,729
70$235,827$0$0$0
71$104,947$0$0$0
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
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