Can I retire at age 40 with 721,000?

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 $721,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.1%
1 years$59,540$59,009$58,492$57,987$57,494$55,832
2 years$29,475$28,926$28,394$27,878$27,378$25,717
3 years$19,455$18,903$18,373$17,862$17,370$15,762
4 years$14,446$13,896$13,371$12,868$12,388$10,845
5 years$11,441$10,895$10,376$9,884$9,417$7,944
6 years$9,439$8,896$8,386$7,904$7,452$6,049
7 years$8,009$7,471$6,968$6,499$6,060$4,728
8 years$6,937$6,404$5,910$5,452$5,027$3,765
9 years$6,104$5,576$5,090$4,644$4,234$3,040
10 years$5,438$4,915$4,438$4,003$3,607$2,481
11 years$4,893$4,375$3,907$3,484$3,103$2,041
12 years$4,439$3,927$3,467$3,056$2,689$1,690
13 years$4,056$3,549$3,098$2,698$2,345$1,407
14 years$3,727$3,226$2,783$2,395$2,055$1,176
15 years$3,443$2,947$2,513$2,136$1,810$987
16 years$3,194$2,704$2,278$1,912$1,599$830
17 years$2,975$2,490$2,073$1,718$1,418$700
18 years$2,781$2,301$1,893$1,548$1,261$592
19 years$2,607$2,133$1,733$1,399$1,124$501
20 years$2,450$1,982$1,590$1,267$1,004$424
21 years$2,309$1,846$1,463$1,150$898$360
22 years$2,181$1,723$1,348$1,046$805$306
23 years$2,064$1,611$1,245$952$723$260
24 years$1,957$1,510$1,151$869$650$221
25 years$1,859$1,417$1,066$793$585$188
26 years$1,768$1,332$989$725$527$160
27 years$1,685$1,253$918$664$475$136
28 years$1,607$1,181$854$608$428$116
29 years$1,535$1,114$794$558$387$99
30 years$1,468$1,052$740$512$350$85
31 years$1,405$995$690$470$316$72
32 years$1,346$941$644$432$286$61
33 years$1,291$891$601$397$259$52
34 years$1,240$845$561$366$234$45
35 years$1,191$801$525$337$212$38
36 years$1,145$760$491$310$192$33
37 years$1,102$722$460$286$174$28
38 years$1,061$686$430$263$158$24
39 years$1,022$653$403$243$143$20
40 years$986$621$378$224$130$17
41 years$951$591$354$207$118$15
42 years$918$563$332$191$107$13
43 years$887$536$312$176$97$11
44 years$857$511$293$162$88$9
45 years$828$488$275$150$80$8
46 years$801$465$258$139$73$7
47 years$775$444$243$128$66$6
48 years$750$424$228$118$60$5
49 years$727$405$214$109$54$4
50 years$704$387$201$101$49$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $721,000, adding $6,722 every year, while hoping to spend $59,200 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: 84/6/10 Blend
39$721,000$721,000$721,000$721,000
40$801,476$763,263$752,087$867,040
41$820,238$737,674$714,294$885,322
42$838,930$708,848$673,250$896,751
43$857,481$676,562$628,785$907,485
44$875,814$640,584$580,719$917,417
45$893,840$600,664$528,865$926,432
46$911,457$556,543$473,028$934,399
47$928,555$507,943$413,004$941,176
48$945,007$454,571$348,579$946,608
49$960,671$396,119$279,530$950,520
50$975,391$332,260$205,625$952,722
51$988,989$262,648$126,622$953,004
52$1,001,268$186,921$42,266$951,135
53$1,012,009$104,691$0$946,860
54$1,020,967$15,554$0$944,995
55$1,027,869$0$0$945,278
56$1,032,412$0$0$948,229
57$1,034,259$0$0$949,704
58$1,033,035$0$0$948,329
59$1,028,326$0$0$943,719
60$1,019,668$0$0$935,447
61$1,006,550$0$0$923,039
62$988,405$0$0$905,968
63$964,604$0$0$883,653
64$934,449$0$0$855,447
65$897,170$0$0$820,638
66$851,911$0$0$778,432
67$797,727$0$0$727,955
68$733,573$0$0$668,239
69$658,292$0$0$598,212
70$570,603$0$0$516,688
71$469,092$0$0$422,360
72$352,197$0$0$313,778
73$218,189$0$0$189,344
74$65,159$0$0$47,290
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