Can I retire at age 40 with 742,000?

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 $742,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.4%
1 years$61,274$60,728$60,195$59,676$59,168$57,621
2 years$30,333$29,769$29,221$28,690$28,175$26,627
3 years$20,021$19,454$18,908$18,382$17,876$16,375
4 years$14,866$14,301$13,760$13,243$12,749$11,307
5 years$11,774$11,212$10,678$10,172$9,692$8,313
6 years$9,713$9,155$8,630$8,135$7,669$6,354
7 years$8,242$7,689$7,171$6,688$6,237$4,986
8 years$7,139$6,591$6,082$5,610$5,174$3,987
9 years$6,281$5,738$5,238$4,779$4,357$3,233
10 years$5,596$5,058$4,567$4,119$3,713$2,650
11 years$5,035$4,503$4,021$3,585$3,193$2,190
12 years$4,569$4,042$3,568$3,145$2,767$1,822
13 years$4,174$3,652$3,188$2,776$2,413$1,524
14 years$3,836$3,320$2,864$2,464$2,115$1,280
15 years$3,543$3,033$2,586$2,198$1,862$1,079
16 years$3,287$2,783$2,345$1,968$1,646$912
17 years$3,062$2,563$2,134$1,768$1,459$773
18 years$2,862$2,368$1,948$1,593$1,298$657
19 years$2,683$2,195$1,783$1,440$1,157$559
20 years$2,522$2,039$1,636$1,304$1,033$476
21 years$2,376$1,900$1,505$1,184$924$406
22 years$2,245$1,773$1,387$1,076$829$347
23 years$2,124$1,658$1,281$980$744$296
24 years$2,014$1,554$1,185$894$669$254
25 years$1,913$1,458$1,097$816$602$217
26 years$1,820$1,370$1,018$746$542$186
27 years$1,734$1,290$945$683$489$159
28 years$1,654$1,215$878$626$441$136
29 years$1,580$1,147$817$574$398$117
30 years$1,510$1,083$761$527$360$100
31 years$1,446$1,024$710$484$325$86
32 years$1,385$969$662$445$294$74
33 years$1,329$917$618$409$266$63
34 years$1,276$869$578$376$241$54
35 years$1,226$825$540$346$218$47
36 years$1,178$783$505$319$198$40
37 years$1,134$743$473$294$179$34
38 years$1,092$706$443$271$163$30
39 years$1,052$672$415$250$147$25
40 years$1,014$639$389$230$134$22
41 years$979$608$365$213$121$19
42 years$945$579$342$196$110$16
43 years$912$552$321$181$100$14
44 years$882$526$301$167$91$12
45 years$852$502$283$154$82$10
46 years$824$479$266$143$75$9
47 years$798$457$250$132$68$8
48 years$772$436$235$122$62$6
49 years$748$416$221$113$56$6
50 years$724$398$207$104$51$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $742,000, adding $2,942 every year, while hoping to spend $39,795 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: 48/29/23 Blend
39$742,000$742,000$742,000$742,000
40$820,719$781,393$769,892$854,627
41$862,090$777,339$753,341$874,560
42$906,348$771,754$734,903$891,983
43$953,745$764,518$714,471$910,093
44$1,004,556$755,510$691,936$928,974
45$1,059,087$744,596$667,182$948,718
46$1,117,670$731,637$640,088$969,431
47$1,180,671$716,486$610,530$991,231
48$1,248,492$698,985$578,375$1,014,252
49$1,321,573$678,971$543,485$1,038,644
50$1,400,398$656,266$505,717$1,064,576
51$1,485,501$630,685$464,921$1,092,238
52$1,577,466$602,032$420,940$1,121,841
53$1,676,935$570,099$373,609$1,153,624
54$1,784,615$534,667$322,757$1,187,853
55$1,901,282$495,502$268,206$1,224,825
56$2,027,790$452,359$209,768$1,264,873
57$2,165,079$404,978$147,249$1,308,369
58$2,314,180$353,085$80,444$1,355,727
59$2,476,229$296,389$9,143$1,407,408
60$2,652,477$234,584$0$1,463,929
61$2,844,297$167,347$0$1,542,293
62$3,053,203$94,335$0$1,630,171
63$3,280,860$15,187$0$1,726,088
64$3,529,098$0$0$1,830,896
65$3,799,936$0$0$1,968,030
66$4,095,590$0$0$2,123,097
67$4,418,506$0$0$2,292,542
68$4,771,372$0$0$2,477,787
69$5,157,148$0$0$2,680,396
70$5,579,096$0$0$2,902,092
71$6,040,803$0$0$3,144,772
72$6,546,223$0$0$3,410,526
73$7,099,707$0$0$3,701,654
74$7,706,048$0$0$4,020,689
75$8,370,524$0$0$4,370,422
76$9,098,949$0$0$4,753,926
77$9,897,724$0$0$5,174,586
78$10,773,900$0$0$5,636,129
79$11,735,244$0$0$6,142,663
80$12,790,311$0$0$6,698,710
81$13,948,525$0$0$7,309,252
82$15,220,264$0$0$7,979,779
83$16,616,965$0$0$8,716,337
84$18,151,222$0$0$9,525,587
85$19,836,912$0$0$10,414,865
86$21,689,321$0$0$11,392,257
87$23,725,292$0$0$12,466,667
88$25,963,377$0$0$13,647,908
89$28,424,016$0$0$14,946,789
90$31,129,731$0$0$16,375,220
91$34,105,332$0$0$17,946,322
92$37,378,157$0$0$19,674,553
93$40,978,322$0$0$21,575,842
94$44,939,014$0$0$23,667,738
95$49,296,795$0$0$25,969,579
96$54,091,951$0$0$28,502,671
97$59,368,869$0$0$31,290,491
98$65,176,459$0$0$34,358,905
99$71,568,610$0$0$37,736,417
100$78,604,700$0$0$41,454,431