Can I retire at age 40 with 725,000?

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 $725,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12%
1 years$59,870$59,337$58,816$58,308$57,813$57,328
2 years$29,639$29,087$28,552$28,033$27,530$27,042
3 years$19,563$19,008$18,475$17,961$17,466$16,989
4 years$14,526$13,973$13,445$12,940$12,457$11,995
5 years$11,504$10,955$10,434$9,939$9,470$9,024
6 years$9,491$8,946$8,432$7,948$7,493$7,064
7 years$8,053$7,513$7,007$6,535$6,094$5,682
8 years$6,975$6,440$5,943$5,482$5,055$4,661
9 years$6,138$5,607$5,118$4,669$4,257$3,880
10 years$5,468$4,942$4,462$4,025$3,627$3,267
11 years$4,920$4,400$3,929$3,503$3,120$2,776
12 years$4,464$3,949$3,486$3,073$2,704$2,375
13 years$4,078$3,569$3,115$2,713$2,358$2,045
14 years$3,748$3,244$2,799$2,408$2,067$1,770
15 years$3,462$2,963$2,527$2,147$1,820$1,538
16 years$3,212$2,719$2,291$1,923$1,608$1,341
17 years$2,992$2,504$2,085$1,728$1,426$1,173
18 years$2,796$2,314$1,903$1,557$1,268$1,028
19 years$2,621$2,144$1,742$1,407$1,130$904
20 years$2,464$1,993$1,599$1,274$1,009$796
21 years$2,322$1,856$1,471$1,156$903$702
22 years$2,193$1,733$1,355$1,051$810$620
23 years$2,076$1,620$1,252$958$727$548
24 years$1,968$1,518$1,157$873$653$485
25 years$1,869$1,425$1,072$798$588$430
26 years$1,778$1,339$994$729$530$381
27 years$1,694$1,260$923$668$477$338
28 years$1,616$1,188$858$612$431$301
29 years$1,543$1,120$799$561$389$267
30 years$1,476$1,058$744$515$351$238
31 years$1,413$1,000$694$473$318$211
32 years$1,354$946$647$434$287$188
33 years$1,298$896$604$400$260$167
34 years$1,246$849$565$368$236$149
35 years$1,198$806$528$338$213$133
36 years$1,151$765$494$312$193$118
37 years$1,108$726$462$287$175$105
38 years$1,067$690$433$265$159$94
39 years$1,028$656$405$244$144$84
40 years$991$624$380$225$131$75
41 years$956$594$356$208$119$67
42 years$923$566$334$192$108$59
43 years$891$539$314$177$98$53
44 years$861$514$294$163$89$47
45 years$833$490$276$151$80$42
46 years$805$468$260$139$73$38
47 years$779$446$244$129$66$34
48 years$754$426$229$119$60$30
49 years$731$407$215$110$55$27
50 years$708$389$203$102$50$24

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $725,000, adding $3,407 every year, while hoping to spend $57,900 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: 80/9/11 Blend
39$725,000$725,000$725,000$725,000
40$802,464$764,039$752,802$864,853
41$822,711$739,872$716,416$882,124
42$843,081$712,580$676,870$893,185
43$863,528$681,949$633,997$903,625
44$883,996$647,752$587,624$913,354
45$904,422$609,750$537,568$922,273
46$924,734$567,689$483,637$930,276
47$944,852$521,301$425,634$937,241
48$964,684$470,303$363,351$943,040
49$984,129$414,394$296,570$947,528
50$1,003,069$353,259$225,064$950,548
51$1,021,377$286,563$148,598$951,928
52$1,038,905$213,953$66,924$951,478
53$1,055,492$135,055$0$948,991
54$1,070,955$49,475$0$946,613
55$1,085,091$0$0$950,256
56$1,097,673$0$0$956,094
57$1,108,449$0$0$965,228
58$1,117,136$0$0$972,510
59$1,123,422$0$0$977,662
60$1,126,958$0$0$980,377
61$1,127,356$0$0$980,314
62$1,124,186$0$0$977,092
63$1,116,971$0$0$970,290
64$1,105,180$0$0$959,441
65$1,088,227$0$0$944,027
66$1,065,459$0$0$923,471
67$1,036,156$0$0$897,138
68$999,517$0$0$864,323
69$954,658$0$0$824,244
70$900,599$0$0$776,038
71$836,255$0$0$718,748
72$760,428$0$0$651,316
73$671,791$0$0$572,573
74$568,878$0$0$481,225
75$450,067$0$0$375,842
76$313,568$0$0$254,844
77$157,399$0$0$116,486
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