Can I retire at age 40 with 740,000?

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 $740,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.3%
1 years$61,109$60,564$60,033$59,515$59,009$56,802
2 years$30,252$29,688$29,142$28,613$28,099$25,902
3 years$19,967$19,402$18,857$18,333$17,827$15,707
4 years$14,826$14,262$13,723$13,208$12,715$10,689
5 years$11,743$11,182$10,650$10,145$9,665$7,739
6 years$9,687$9,131$8,607$8,113$7,648$5,822
7 years$8,220$7,668$7,152$6,670$6,220$4,494
8 years$7,120$6,573$6,066$5,595$5,160$3,533
9 years$6,265$5,723$5,224$4,766$4,345$2,814
10 years$5,581$5,044$4,555$4,108$3,703$2,265
11 years$5,022$4,491$4,010$3,575$3,184$1,837
12 years$4,556$4,031$3,559$3,136$2,759$1,499
13 years$4,163$3,643$3,179$2,769$2,406$1,230
14 years$3,826$3,311$2,857$2,458$2,109$1,012
15 years$3,534$3,025$2,579$2,192$1,857$836
16 years$3,278$2,775$2,338$1,963$1,641$692
17 years$3,054$2,556$2,128$1,763$1,455$574
18 years$2,854$2,362$1,942$1,589$1,294$477
19 years$2,675$2,189$1,778$1,436$1,153$397
20 years$2,515$2,034$1,632$1,301$1,030$331
21 years$2,370$1,894$1,501$1,180$922$276
22 years$2,238$1,768$1,383$1,073$826$231
23 years$2,119$1,654$1,277$977$742$193
24 years$2,009$1,550$1,181$891$667$161
25 years$1,908$1,454$1,094$814$600$135
26 years$1,815$1,367$1,015$744$540$113
27 years$1,729$1,286$942$681$487$94
28 years$1,649$1,212$876$624$440$79
29 years$1,575$1,143$815$572$397$66
30 years$1,506$1,080$759$525$359$55
31 years$1,442$1,021$708$483$324$46
32 years$1,382$966$661$443$293$39
33 years$1,325$915$617$408$266$33
34 years$1,272$867$576$375$240$27
35 years$1,222$822$539$345$218$23
36 years$1,175$780$504$318$197$19
37 years$1,131$741$472$293$179$16
38 years$1,089$704$442$270$162$13
39 years$1,049$670$414$249$147$11
40 years$1,012$637$388$230$133$9
41 years$976$607$364$212$121$8
42 years$942$578$341$196$110$7
43 years$910$551$320$181$100$6
44 years$879$525$301$167$90$5
45 years$850$500$282$154$82$4
46 years$822$477$265$142$75$3
47 years$796$456$249$131$68$3
48 years$770$435$234$121$61$2
49 years$746$415$220$112$56$2
50 years$722$397$207$104$51$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $740,000, adding $4,195 every year, while hoping to spend $49,256 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: 56/20/24 Blend
39$740,000$740,000$740,000$740,000
40$819,807$780,587$769,117$860,134
41$851,019$766,428$742,475$874,070
42$883,765$749,924$713,289$883,699
43$918,147$730,909$681,422$893,151
44$954,280$709,205$646,732$902,423
45$992,286$684,626$609,067$911,515
46$1,032,300$656,974$568,272$920,428
47$1,074,468$626,039$524,182$929,169
48$1,118,949$591,599$476,627$937,747
49$1,165,915$553,421$425,428$946,175
50$1,215,557$511,257$370,398$954,473
51$1,268,079$464,844$311,342$962,663
52$1,323,708$413,906$248,056$970,777
53$1,382,688$358,150$180,328$978,853
54$1,445,290$297,266$107,936$986,936
55$1,511,806$230,929$30,649$995,081
56$1,582,558$158,793$0$1,003,356
57$1,657,898$80,493$0$1,025,111
58$1,738,212$0$0$1,056,404
59$1,823,920$0$0$1,090,510
60$1,915,486$0$0$1,145,913
61$2,013,416$0$0$1,205,207
62$2,118,264$0$0$1,268,736
63$2,230,641$0$0$1,336,874
64$2,351,214$0$0$1,410,032
65$2,480,717$0$0$1,488,660
66$2,619,954$0$0$1,573,255
67$2,769,808$0$0$1,664,361
68$2,931,250$0$0$1,762,574
69$3,105,345$0$0$1,868,552
70$3,293,264$0$0$1,983,014
71$3,496,292$0$0$2,106,753
72$3,715,843$0$0$2,240,640
73$3,953,471$0$0$2,385,631
74$4,210,883$0$0$2,542,780
75$4,489,958$0$0$2,713,244
76$4,792,759$0$0$2,898,294
77$5,121,557$0$0$3,099,331
78$5,478,852$0$0$3,317,894
79$5,867,389$0$0$3,555,677
80$6,290,193$0$0$3,814,543
81$6,750,589$0$0$4,096,544
82$7,252,237$0$0$4,403,936
83$7,799,166$0$0$4,739,203
84$8,395,809$0$0$5,105,077
85$9,047,044$0$0$5,504,569
86$9,758,244$0$0$5,940,991
87$10,535,321$0$0$6,417,988
88$11,384,784$0$0$6,939,577
89$12,313,801$0$0$7,510,176
90$13,330,262$0$0$8,134,654
91$14,442,857$0$0$8,818,369
92$15,661,152$0$0$9,567,223
93$16,995,685$0$0$10,387,717
94$18,458,060$0$0$11,287,006
95$20,061,054$0$0$12,272,975
96$21,818,741$0$0$13,354,306
97$23,746,625$0$0$14,540,561
98$25,861,776$0$0$15,842,274
99$28,183,003$0$0$17,271,047
100$30,731,020$0$0$18,839,659