Can I retire at age 40 with 747,000?

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 $747,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$61,687$61,137$60,601$60,078$59,567$59,018
2 years$30,538$29,969$29,418$28,884$28,365$27,813
3 years$20,156$19,585$19,035$18,506$17,996$17,457
4 years$14,967$14,397$13,853$13,333$12,835$12,313
5 years$11,854$11,288$10,750$10,241$9,757$9,253
6 years$9,779$9,217$8,688$8,190$7,720$7,236
7 years$8,298$7,741$7,220$6,733$6,279$5,814
8 years$7,187$6,635$6,123$5,648$5,209$4,763
9 years$6,324$5,777$5,274$4,811$4,387$3,961
10 years$5,634$5,092$4,598$4,147$3,738$3,331
11 years$5,069$4,533$4,048$3,609$3,214$2,826
12 years$4,599$4,069$3,592$3,166$2,786$2,416
13 years$4,202$3,677$3,209$2,795$2,429$2,077
14 years$3,862$3,342$2,884$2,481$2,129$1,795
15 years$3,567$3,053$2,604$2,213$1,875$1,558
16 years$3,309$2,801$2,361$1,981$1,657$1,357
17 years$3,082$2,580$2,148$1,780$1,469$1,185
18 years$2,881$2,384$1,961$1,604$1,306$1,037
19 years$2,701$2,209$1,795$1,450$1,164$910
20 years$2,539$2,053$1,647$1,313$1,040$800
21 years$2,392$1,912$1,515$1,191$931$705
22 years$2,260$1,785$1,397$1,083$834$622
23 years$2,139$1,670$1,289$987$749$549
24 years$2,028$1,564$1,193$900$673$485
25 years$1,926$1,468$1,105$822$606$429
26 years$1,832$1,380$1,024$751$546$380
27 years$1,745$1,298$951$688$492$337
28 years$1,665$1,224$884$630$444$299
29 years$1,590$1,154$823$578$401$265
30 years$1,521$1,090$767$530$362$235
31 years$1,456$1,030$715$487$327$209
32 years$1,395$975$667$448$296$186
33 years$1,338$923$623$412$268$165
34 years$1,284$875$582$379$243$147
35 years$1,234$830$544$349$220$130
36 years$1,186$788$509$321$199$116
37 years$1,142$748$476$296$180$103
38 years$1,099$711$446$273$164$92
39 years$1,059$676$418$251$148$82
40 years$1,021$643$392$232$135$73
41 years$985$612$367$214$122$65
42 years$951$583$344$197$111$58
43 years$919$556$323$182$101$51
44 years$888$530$303$168$91$46
45 years$858$505$285$155$83$41
46 years$830$482$268$144$75$36
47 years$803$460$251$133$68$32
48 years$777$439$236$123$62$29
49 years$753$419$222$113$56$26
50 years$729$400$209$105$51$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $747,000, adding $2,313 every year, while hoping to spend $44,469 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: 44/35/21 Blend
39$747,000$747,000$747,000$747,000
40$825,580$785,989$774,410$856,792
41$862,474$777,188$753,038$870,244
42$901,642$766,465$729,460$880,285
43$943,267$753,679$703,555$890,257
44$987,552$738,681$675,195$900,178
45$1,034,718$721,313$644,251$910,068
46$1,085,008$701,406$610,582$919,953
47$1,138,687$678,783$574,045$929,866
48$1,196,046$653,256$534,488$939,845
49$1,257,404$624,627$491,755$949,938
50$1,323,111$592,685$445,680$960,202
51$1,393,549$557,208$396,091$970,704
52$1,469,140$517,959$342,809$981,523
53$1,550,344$474,692$285,645$992,750
54$1,637,669$427,141$224,404$1,004,492
55$1,731,670$375,030$158,881$1,016,872
56$1,832,959$318,065$88,862$1,030,033
57$1,942,206$255,936$14,124$1,044,137
58$2,060,148$188,314$0$1,059,371
59$2,187,596$114,853$0$1,090,655
60$2,325,438$35,189$0$1,127,857
61$2,474,653$0$0$1,168,143
62$2,636,317$0$0$1,231,550
63$2,811,612$0$0$1,315,075
64$3,001,839$0$0$1,405,793
65$3,208,427$0$0$1,504,396
66$3,432,949$0$0$1,611,647
67$3,677,137$0$0$1,728,381
68$3,942,894$0$0$1,855,522
69$4,232,314$0$0$1,994,082
70$4,547,704$0$0$2,145,179
71$4,891,600$0$0$2,310,040
72$5,266,794$0$0$2,490,017
73$5,676,360$0$0$2,686,600
74$6,123,680$0$0$2,901,425
75$6,612,480$0$0$3,136,298
76$7,146,859$0$0$3,393,204
77$7,731,332$0$0$3,674,330
78$8,370,869$0$0$3,982,084
79$9,070,944$0$0$4,319,117
80$9,837,583$0$0$4,688,350
81$10,677,423$0$0$5,092,999
82$11,597,774$0$0$5,536,604
83$12,606,685$0$0$6,023,067
84$13,713,022$0$0$6,556,683
85$14,926,550$0$0$7,142,185
86$16,258,023$0$0$7,784,785
87$17,719,290$0$0$8,490,224
88$19,323,399$0$0$9,264,827
89$21,084,724$0$0$10,115,560
90$23,019,099$0$0$11,050,098
91$25,143,969$0$0$12,076,896
92$27,478,549$0$0$13,205,267
93$30,044,007$0$0$14,445,473
94$32,863,665$0$0$15,808,817
95$35,963,217$0$0$17,307,755
96$39,370,967$0$0$18,956,007
97$43,118,103$0$0$20,768,691
98$47,238,982$0$0$22,762,463
99$51,771,460$0$0$24,955,674
100$56,757,245$0$0$27,368,542