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%14.7%
1 years$59,870$59,337$58,816$58,308$57,813$56,692
2 years$29,639$29,087$28,552$28,033$27,530$26,405
3 years$19,563$19,008$18,475$17,961$17,466$16,373
4 years$14,526$13,973$13,445$12,940$12,457$11,403
5 years$11,504$10,955$10,434$9,939$9,470$8,458
6 years$9,491$8,946$8,432$7,948$7,493$6,526
7 years$8,053$7,513$7,007$6,535$6,094$5,170
8 years$6,975$6,440$5,943$5,482$5,055$4,176
9 years$6,138$5,607$5,118$4,669$4,257$3,421
10 years$5,468$4,942$4,462$4,025$3,627$2,833
11 years$4,920$4,400$3,929$3,503$3,120$2,367
12 years$4,464$3,949$3,486$3,073$2,704$1,991
13 years$4,078$3,569$3,115$2,713$2,358$1,684
14 years$3,748$3,244$2,799$2,408$2,067$1,432
15 years$3,462$2,963$2,527$2,147$1,820$1,221
16 years$3,212$2,719$2,291$1,923$1,608$1,045
17 years$2,992$2,504$2,085$1,728$1,426$897
18 years$2,796$2,314$1,903$1,557$1,268$771
19 years$2,621$2,144$1,742$1,407$1,130$664
20 years$2,464$1,993$1,599$1,274$1,009$573
21 years$2,322$1,856$1,471$1,156$903$496
22 years$2,193$1,733$1,355$1,051$810$429
23 years$2,076$1,620$1,252$958$727$371
24 years$1,968$1,518$1,157$873$653$322
25 years$1,869$1,425$1,072$798$588$279
26 years$1,778$1,339$994$729$530$242
27 years$1,694$1,260$923$668$477$211
28 years$1,616$1,188$858$612$431$183
29 years$1,543$1,120$799$561$389$159
30 years$1,476$1,058$744$515$351$138
31 years$1,413$1,000$694$473$318$120
32 years$1,354$946$647$434$287$105
33 years$1,298$896$604$400$260$91
34 years$1,246$849$565$368$236$79
35 years$1,198$806$528$338$213$69
36 years$1,151$765$494$312$193$60
37 years$1,108$726$462$287$175$52
38 years$1,067$690$433$265$159$46
39 years$1,028$656$405$244$144$40
40 years$991$624$380$225$131$35
41 years$956$594$356$208$119$30
42 years$923$566$334$192$108$26
43 years$891$539$314$177$98$23
44 years$861$514$294$163$89$20
45 years$833$490$276$151$80$17
46 years$805$468$260$139$73$15
47 years$779$446$244$129$66$13
48 years$754$426$229$119$60$12
49 years$731$407$215$110$55$10
50 years$708$389$203$102$50$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $725,000, adding $5,703 every year, while hoping to spend $48,746 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: 75/16/9 Blend
39$725,000$725,000$725,000$725,000
40$804,833$766,408$755,170$863,556
41$835,060$752,096$728,603$888,711
42$866,737$735,450$699,512$909,535
43$899,960$716,303$667,761$930,974
44$934,833$694,479$633,209$953,071
45$971,471$669,792$595,705$975,877
46$1,009,995$642,047$555,096$999,445
47$1,050,542$611,034$511,219$1,023,837
48$1,093,256$576,534$463,904$1,049,121
49$1,138,297$538,313$412,974$1,075,373
50$1,185,839$496,126$358,244$1,102,677
51$1,236,070$449,712$299,520$1,131,130
52$1,289,197$398,795$236,602$1,160,835
53$1,345,445$343,086$169,278$1,191,913
54$1,405,059$282,276$97,328$1,224,492
55$1,468,310$216,042$20,523$1,258,722
56$1,535,490$144,040$0$1,294,763
57$1,606,920$65,909$0$1,338,700
58$1,682,953$0$0$1,387,319
59$1,763,974$0$0$1,442,198
60$1,850,403$0$0$1,513,137
61$1,942,703$0$0$1,588,912
62$2,041,380$0$0$1,669,941
63$2,146,988$0$0$1,756,682
64$2,260,136$0$0$1,849,638
65$2,381,491$0$0$1,949,360
66$2,511,785$0$0$2,056,451
67$2,651,821$0$0$2,171,575
68$2,802,482$0$0$2,295,462
69$2,964,736$0$0$2,428,910
70$3,139,646$0$0$2,572,798
71$3,328,382$0$0$2,728,091
72$3,532,225$0$0$2,895,849
73$3,752,588$0$0$3,077,237
74$3,991,020$0$0$3,273,537
75$4,249,226$0$0$3,486,155
76$4,529,079$0$0$3,716,640
77$4,832,640$0$0$3,966,694
78$5,162,174$0$0$4,238,188
79$5,520,174$0$0$4,533,182
80$5,909,381$0$0$4,853,940
81$6,332,810$0$0$5,202,954
82$6,793,780$0$0$5,582,966
83$7,295,943$0$0$5,996,993
84$7,843,316$0$0$6,448,353
85$8,440,321$0$0$6,940,703
86$9,091,826$0$0$7,478,062
87$9,803,188$0$0$8,064,858
88$10,580,305$0$0$8,705,965
89$11,429,669$0$0$9,406,747
90$12,358,429$0$0$10,173,111
91$13,374,455$0$0$11,011,561
92$14,486,413$0$0$11,929,257
93$15,703,845$0$0$12,934,086
94$17,037,259$0$0$14,034,731
95$18,498,228$0$0$15,240,755
96$20,099,495$0$0$16,562,689
97$21,855,097$0$0$18,012,133
98$23,780,491$0$0$19,601,862
99$25,892,706$0$0$21,345,947
100$28,210,494$0$0$23,259,887