Can I retire at age 40 with 700,000?

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 $700,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.3%
1 years$57,805$57,290$56,788$56,298$55,819$53,732
2 years$28,617$28,084$27,567$27,066$26,580$24,501
3 years$18,888$18,353$17,838$17,342$16,864$14,858
4 years$14,025$13,491$12,981$12,494$12,027$10,111
5 years$11,108$10,577$10,074$9,596$9,143$7,321
6 years$9,164$8,637$8,141$7,674$7,235$5,507
7 years$7,776$7,254$6,765$6,309$5,884$4,251
8 years$6,735$6,218$5,738$5,293$4,881$3,342
9 years$5,926$5,414$4,942$4,508$4,111$2,662
10 years$5,279$4,772$4,308$3,886$3,502$2,143
11 years$4,750$4,248$3,793$3,382$3,012$1,738
12 years$4,310$3,813$3,366$2,967$2,610$1,418
13 years$3,938$3,446$3,008$2,619$2,276$1,163
14 years$3,619$3,132$2,702$2,325$1,995$958
15 years$3,343$2,861$2,440$2,073$1,757$791
16 years$3,101$2,625$2,212$1,857$1,553$655
17 years$2,889$2,418$2,013$1,668$1,377$543
18 years$2,700$2,234$1,837$1,503$1,224$452
19 years$2,531$2,070$1,682$1,358$1,091$376
20 years$2,379$1,924$1,544$1,230$975$313
21 years$2,242$1,792$1,420$1,117$872$261
22 years$2,117$1,673$1,309$1,015$782$218
23 years$2,004$1,565$1,208$925$702$182
24 years$1,900$1,466$1,118$843$631$152
25 years$1,805$1,376$1,035$770$568$127
26 years$1,717$1,293$960$704$511$107
27 years$1,635$1,217$891$645$461$89
28 years$1,560$1,147$829$591$416$75
29 years$1,490$1,082$771$542$376$62
30 years$1,425$1,021$718$497$339$52
31 years$1,364$966$670$456$307$44
32 years$1,307$914$625$419$278$37
33 years$1,254$865$583$386$251$31
34 years$1,203$820$545$355$227$26
35 years$1,156$778$510$327$206$22
36 years$1,112$738$477$301$187$18
37 years$1,070$701$446$277$169$15
38 years$1,030$666$418$256$153$13
39 years$993$634$391$236$139$11
40 years$957$603$367$217$126$9
41 years$923$574$344$201$114$7
42 years$891$547$323$185$104$6
43 years$861$521$303$171$94$5
44 years$832$496$284$158$86$4
45 years$804$473$267$146$78$4
46 years$778$452$251$135$70$3
47 years$753$431$236$124$64$3
48 years$728$411$221$115$58$2
49 years$705$393$208$106$53$2
50 years$683$375$196$98$48$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $700,000, adding $5,624 every year, while hoping to spend $20,714 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: 37/36/27 Blend
39$700,000$700,000$700,000$700,000
40$777,201$740,101$729,251$799,508
41$834,436$754,327$731,642$830,678
42$896,815$768,555$733,418$862,025
43$964,840$782,764$734,537$895,487
44$1,039,065$796,931$734,956$931,266
45$1,120,099$811,030$734,626$969,588
46$1,208,613$825,034$733,500$1,010,703
47$1,305,344$838,914$731,525$1,054,887
48$1,411,106$852,637$728,648$1,102,444
49$1,526,793$866,170$724,811$1,153,710
50$1,653,390$879,477$719,957$1,209,056
51$1,791,983$892,518$714,022$1,268,894
52$1,943,765$905,251$706,941$1,333,675
53$2,110,052$917,632$698,647$1,403,901
54$2,292,293$929,612$689,068$1,480,124
55$2,492,084$941,140$678,129$1,562,955
56$2,711,182$952,161$665,752$1,653,067
57$2,951,523$962,617$651,854$1,751,205
58$3,215,237$972,444$636,351$1,858,191
59$3,504,675$981,578$619,152$1,974,932
60$3,822,422$989,945$600,164$2,102,429
61$4,171,328$997,471$579,288$2,241,790
62$4,554,531$1,004,074$556,421$2,394,233
63$4,975,489$1,009,670$531,458$2,561,107
64$5,438,011$1,014,167$504,284$2,743,900
65$5,946,294$1,017,467$474,783$2,944,253
66$6,504,961$1,019,467$442,833$3,163,977
67$7,119,103$1,020,058$408,305$3,405,073
68$7,794,334$1,019,122$371,065$3,669,747
69$8,536,834$1,016,537$330,974$3,960,434
70$9,353,415$1,012,171$287,885$4,279,821
71$10,251,580$1,005,885$241,646$4,630,872
72$11,239,598$997,530$192,098$5,016,858
73$12,326,578$986,950$139,074$5,441,389
74$13,522,557$973,978$82,401$5,908,445
75$14,838,594$958,439$21,898$6,422,419
76$16,286,873$940,146$0$6,988,156
77$17,880,822$918,901$0$7,623,293
78$19,635,233$894,494$0$8,328,965
79$21,566,407$866,705$0$9,105,418
80$23,692,305$835,297$0$9,959,887
81$26,032,717$800,024$0$10,900,346
82$28,609,451$760,622$0$11,935,589
83$31,446,535$716,813$0$13,075,306
84$34,570,449$668,303$0$14,330,183
85$38,010,367$614,782$0$15,711,999
86$41,798,439$555,922$0$17,233,736
87$45,970,091$491,373$0$18,909,708
88$50,564,361$420,771$0$20,755,693
89$55,624,264$343,727$0$22,789,082
90$61,197,201$259,831$0$25,029,049
91$67,335,403$168,651$0$27,496,725
92$74,096,430$69,730$0$30,215,407
93$81,543,704$0$0$33,210,772
94$89,747,119$0$0$36,525,947
95$98,783,688$0$0$40,208,390
96$108,738,283$0$0$44,265,082
97$119,704,424$0$0$48,734,152
98$131,785,168$0$0$53,657,620
99$145,094,082$0$0$59,081,788
100$159,756,310$0$0$65,057,680