Can I retire at age 40 with 724,000?

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 $724,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.6%
1 years$59,787$59,255$58,735$58,228$57,733$57,345
2 years$29,598$29,046$28,512$27,994$27,492$27,101
3 years$19,536$18,982$18,449$17,936$17,442$17,060
4 years$14,506$13,954$13,426$12,922$12,440$12,069
5 years$11,489$10,940$10,419$9,925$9,456$9,099
6 years$9,478$8,933$8,420$7,937$7,483$7,138
7 years$8,042$7,502$6,997$6,526$6,085$5,754
8 years$6,966$6,431$5,934$5,474$5,048$4,731
9 years$6,129$5,599$5,111$4,663$4,251$3,947
10 years$5,460$4,935$4,456$4,019$3,622$3,332
11 years$4,913$4,394$3,923$3,498$3,115$2,838
12 years$4,458$3,944$3,482$3,068$2,700$2,435
13 years$4,073$3,564$3,111$2,709$2,354$2,102
14 years$3,743$3,239$2,795$2,405$2,064$1,823
15 years$3,457$2,959$2,523$2,145$1,817$1,589
16 years$3,208$2,715$2,288$1,920$1,606$1,389
17 years$2,988$2,500$2,082$1,725$1,424$1,218
18 years$2,792$2,311$1,900$1,555$1,266$1,071
19 years$2,618$2,141$1,740$1,405$1,128$944
20 years$2,461$1,990$1,597$1,272$1,008$834
21 years$2,319$1,853$1,469$1,155$902$737
22 years$2,190$1,730$1,354$1,050$809$653
23 years$2,073$1,618$1,250$956$726$579
24 years$1,965$1,516$1,156$872$652$514
25 years$1,867$1,423$1,071$796$587$457
26 years$1,776$1,337$993$728$529$407
27 years$1,692$1,258$922$667$477$362
28 years$1,614$1,186$857$611$430$323
29 years$1,541$1,119$798$560$388$288
30 years$1,474$1,057$743$514$351$257
31 years$1,411$999$693$472$317$229
32 years$1,352$945$646$434$287$205
33 years$1,297$895$603$399$260$183
34 years$1,245$848$564$367$235$163
35 years$1,196$805$527$338$213$146
36 years$1,150$764$493$311$193$130
37 years$1,106$725$462$287$175$117
38 years$1,065$689$432$264$159$104
39 years$1,027$655$405$244$144$93
40 years$990$624$380$225$130$84
41 years$955$594$356$207$118$75
42 years$922$565$334$191$107$67
43 years$890$539$313$177$97$60
44 years$860$513$294$163$88$54
45 years$832$490$276$151$80$48
46 years$804$467$259$139$73$43
47 years$778$446$244$129$66$38
48 years$753$425$229$119$60$34
49 years$730$406$215$110$55$31
50 years$707$388$202$101$50$28

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $724,000, adding $2,174 every year, while hoping to spend $42,790 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: 60/24/16 Blend
39$724,000$724,000$724,000$724,000
40$800,090$761,718$750,496$844,717
41$836,171$753,514$730,110$866,878
42$874,499$743,474$707,606$886,083
43$915,256$731,463$682,869$906,033
44$958,644$717,337$655,778$926,805
45$1,004,884$700,945$626,205$948,485
46$1,054,217$682,126$594,018$971,171
47$1,106,908$660,710$559,077$994,972
48$1,163,245$636,518$521,239$1,020,010
49$1,223,547$609,358$480,351$1,046,422
50$1,288,162$579,030$436,256$1,074,362
51$1,357,471$545,319$388,788$1,104,002
52$1,431,894$508,001$337,773$1,135,533
53$1,511,892$466,837$283,033$1,169,170
54$1,597,968$421,575$224,378$1,205,152
55$1,690,678$371,950$161,611$1,243,747
56$1,790,630$317,678$94,529$1,285,253
57$1,898,494$258,464$22,915$1,330,001
58$2,015,004$193,993$0$1,378,363
59$2,140,969$123,932$0$1,439,884
60$2,277,275$47,933$0$1,510,658
61$2,424,900$0$0$1,587,321
62$2,584,916$0$0$1,679,561
63$2,758,502$0$0$1,793,404
64$2,946,957$0$0$1,917,049
65$3,151,708$0$0$2,051,439
66$3,374,324$0$0$2,197,610
67$3,616,533$0$0$2,356,703
68$3,880,235$0$0$2,529,975
69$4,167,522$0$0$2,718,806
70$4,480,694$0$0$2,924,718
71$4,822,284$0$0$3,149,383
72$5,195,080$0$0$3,394,644
73$5,602,151$0$0$3,662,528
74$6,046,874$0$0$3,955,268
75$6,532,967$0$0$4,275,321
76$7,064,525$0$0$4,625,392
77$7,646,056$0$0$5,008,462
78$8,282,523$0$0$5,427,810
79$8,979,392$0$0$5,887,049
80$9,742,681$0$0$6,390,156
81$10,579,018$0$0$6,941,514
82$11,495,702$0$0$7,545,946
83$12,500,774$0$0$8,208,766
84$13,603,087$0$0$8,935,828
85$14,812,394$0$0$9,733,578
86$16,139,437$0$0$10,609,117
87$17,596,048$0$0$11,570,266
88$19,195,260$0$0$12,625,642
89$20,951,431$0$0$13,784,735
90$22,880,376$0$0$15,058,000
91$24,999,519$0$0$16,456,957
92$27,328,053$0$0$17,994,292
93$29,887,122$0$0$19,683,986
94$32,700,022$0$0$21,541,438
95$35,792,417$0$0$23,583,615
96$39,192,582$0$0$25,829,211
97$42,931,667$0$0$28,298,819
98$47,043,995$0$0$31,015,131
99$51,567,379$0$0$34,003,146
100$56,543,482$0$0$37,290,409