Can I retire at age 40 with 705,000?

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 $705,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.4%
1 years$58,218$57,700$57,194$56,700$56,218$55,887
2 years$28,821$28,284$27,764$27,260$26,770$26,437
3 years$19,023$18,484$17,965$17,465$16,984$16,658
4 years$14,125$13,588$13,074$12,583$12,113$11,797
5 years$11,187$10,653$10,146$9,665$9,208$8,903
6 years$9,229$8,699$8,199$7,729$7,286$6,992
7 years$7,831$7,305$6,814$6,354$5,926$5,643
8 years$6,783$6,262$5,779$5,331$4,916$4,644
9 years$5,968$5,452$4,977$4,541$4,140$3,880
10 years$5,317$4,806$4,339$3,914$3,527$3,278
11 years$4,784$4,278$3,820$3,406$3,034$2,796
12 years$4,341$3,840$3,390$2,988$2,629$2,402
13 years$3,966$3,470$3,029$2,638$2,292$2,076
14 years$3,645$3,154$2,722$2,342$2,010$1,803
15 years$3,366$2,882$2,457$2,088$1,769$1,573
16 years$3,123$2,644$2,228$1,870$1,564$1,377
17 years$2,909$2,435$2,027$1,680$1,387$1,210
18 years$2,719$2,250$1,851$1,514$1,233$1,065
19 years$2,549$2,085$1,694$1,368$1,099$940
20 years$2,396$1,938$1,555$1,239$982$831
21 years$2,258$1,805$1,430$1,124$878$736
22 years$2,133$1,685$1,318$1,022$787$653
23 years$2,018$1,576$1,217$931$707$580
24 years$1,914$1,476$1,126$849$635$516
25 years$1,818$1,385$1,042$776$572$460
26 years$1,729$1,302$967$709$515$409
27 years$1,647$1,225$898$649$464$365
28 years$1,571$1,155$835$595$419$326
29 years$1,501$1,089$777$545$378$291
30 years$1,435$1,029$723$501$342$260
31 years$1,374$973$674$460$309$232
32 years$1,316$920$629$422$279$208
33 years$1,263$871$588$388$253$186
34 years$1,212$826$549$357$229$166
35 years$1,164$783$513$329$207$149
36 years$1,120$744$480$303$188$133
37 years$1,077$706$449$279$170$120
38 years$1,037$671$421$257$154$107
39 years$1,000$638$394$237$140$96
40 years$964$607$370$219$127$86
41 years$930$578$347$202$115$77
42 years$898$550$325$186$105$69
43 years$867$524$305$172$95$62
44 years$838$500$286$159$86$56
45 years$810$477$269$147$78$50
46 years$783$455$253$136$71$45
47 years$758$434$237$125$64$40
48 years$734$414$223$116$59$36
49 years$710$396$210$107$53$32
50 years$688$378$197$99$48$29

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $705,000, adding $3,364 every year, while hoping to spend $25,149 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: 35/38/27 Blend
39$705,000$705,000$705,000$705,000
40$780,380$743,015$732,087$801,239
41$833,220$752,664$729,854$826,758
42$890,608$761,944$726,703$851,765
43$952,979$770,808$722,577$878,259
44$1,020,815$779,210$717,416$906,389
45$1,094,646$787,099$711,157$936,323
46$1,175,053$794,420$703,733$968,243
47$1,262,677$801,116$695,077$1,002,356
48$1,358,224$807,124$685,116$1,038,888
49$1,462,469$812,380$673,774$1,078,091
50$1,576,267$816,812$660,972$1,120,246
51$1,700,559$820,348$646,626$1,165,662
52$1,836,378$822,907$630,651$1,214,683
53$1,984,865$824,407$612,954$1,267,690
54$2,147,276$824,757$593,442$1,325,103
55$2,324,990$823,862$572,015$1,387,392
56$2,519,531$821,623$548,569$1,455,074
57$2,732,572$817,932$522,995$1,528,721
58$2,965,959$812,675$495,180$1,608,969
59$3,221,724$805,733$465,005$1,696,521
60$3,502,103$796,977$432,347$1,792,153
61$3,809,562$786,274$397,075$1,896,727
62$4,146,814$773,478$359,053$2,011,194
63$4,516,849$758,438$318,142$2,136,608
64$4,922,961$740,995$274,192$2,274,133
65$5,368,775$720,976$227,050$2,425,058
66$5,858,288$698,202$176,555$2,590,807
67$6,395,902$672,482$122,537$2,772,955
68$6,986,464$643,613$64,822$2,973,242
69$7,635,316$611,383$3,226$3,193,592
70$8,348,342$575,565$0$3,436,131
71$9,132,025$535,920$0$3,721,217
72$9,993,506$492,195$0$4,035,600
73$10,940,654$444,123$0$4,381,277
74$11,982,138$391,421$0$4,761,478
75$13,127,506$333,791$0$5,179,769
76$14,387,283$270,919$0$5,640,081
77$15,773,062$202,469$0$6,146,752
78$17,297,616$128,092$0$6,704,569
79$18,975,018$47,414$0$7,318,810
80$20,820,777$0$0$7,995,301
81$22,851,978$0$0$8,757,174
82$25,087,447$0$0$9,617,604
83$27,547,927$0$0$10,564,765
84$30,256,276$0$0$11,607,470
85$33,237,678$0$0$12,755,432
86$36,519,884$0$0$14,019,352
87$40,133,471$0$0$15,411,022
88$44,112,134$0$0$16,943,436
89$48,493,000$0$0$18,630,911
90$53,316,979$0$0$20,489,225
91$58,629,151$0$0$22,535,763
92$64,479,190$0$0$24,789,682
93$70,921,835$0$0$27,272,092
94$78,017,400$0$0$30,006,255
95$85,832,352$0$0$33,017,802
96$94,439,931$0$0$36,334,981
97$103,920,841$0$0$39,988,918
98$114,364,018$0$0$44,013,911
99$125,867,461$0$0$48,447,755
100$138,539,162$0$0$53,332,102