Can I retire at age 42 with 650,000?

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 $650,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.7%
1 years$53,676$53,198$52,732$52,276$51,832$51,248
2 years$26,572$26,078$25,598$25,133$24,682$24,094
3 years$17,539$17,042$16,564$16,103$15,659$15,086
4 years$13,023$12,528$12,054$11,601$11,168$10,614
5 years$10,314$9,822$9,354$8,911$8,490$7,956
6 years$8,509$8,020$7,560$7,126$6,718$6,204
7 years$7,220$6,735$6,282$5,859$5,463$4,971
8 years$6,254$5,773$5,328$4,915$4,532$4,061
9 years$5,503$5,027$4,589$4,186$3,817$3,367
10 years$4,902$4,431$4,001$3,609$3,252$2,823
11 years$4,411$3,945$3,522$3,141$2,797$2,388
12 years$4,002$3,540$3,126$2,755$2,424$2,035
13 years$3,656$3,200$2,793$2,432$2,114$1,744
14 years$3,360$2,908$2,509$2,159$1,853$1,502
15 years$3,104$2,657$2,266$1,925$1,631$1,299
16 years$2,880$2,438$2,054$1,724$1,442$1,127
17 years$2,682$2,245$1,869$1,549$1,278$981
18 years$2,507$2,074$1,706$1,396$1,137$856
19 years$2,350$1,923$1,562$1,261$1,013$749
20 years$2,209$1,786$1,433$1,142$905$656
21 years$2,082$1,664$1,319$1,037$810$575
22 years$1,966$1,553$1,215$943$726$505
23 years$1,861$1,453$1,122$858$652$445
24 years$1,764$1,361$1,038$783$586$391
25 years$1,676$1,277$961$715$527$345
26 years$1,594$1,201$891$654$475$304
27 years$1,519$1,130$828$598$428$269
28 years$1,449$1,065$769$548$386$237
29 years$1,384$1,004$716$503$349$210
30 years$1,323$949$667$461$315$185
31 years$1,267$897$622$424$285$164
32 years$1,214$848$580$390$258$145
33 years$1,164$803$542$358$233$128
34 years$1,117$762$506$330$211$114
35 years$1,074$722$473$303$191$101
36 years$1,032$686$443$279$173$89
37 years$993$651$414$257$157$79
38 years$957$619$388$237$142$70
39 years$922$588$364$219$129$62
40 years$889$560$341$202$117$55
41 years$857$533$319$186$106$49
42 years$828$508$300$172$96$43
43 years$799$484$281$159$87$38
44 years$772$461$264$146$79$34
45 years$747$440$248$135$72$30
46 years$722$419$233$125$65$27
47 years$699$400$219$115$59$24
48 years$676$382$206$107$54$21
49 years$655$365$193$99$49$19
50 years$635$348$182$91$45$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $650,000, adding $5,374 every year, while hoping to spend $53,454 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: 75/9/16 Blend
41$650,000$650,000$650,000$650,000
42$721,843$687,393$677,318$773,023
43$738,597$664,201$643,134$784,413
44$755,267$638,081$606,013$789,741
45$771,790$608,832$565,800$794,146
46$788,093$576,245$522,334$797,520
47$804,091$540,094$475,445$799,746
48$819,694$500,144$424,958$800,696
49$834,796$456,144$370,687$800,230
50$849,280$407,830$312,440$798,195
51$863,016$354,923$250,016$794,422
52$875,857$297,128$183,205$788,729
53$887,639$234,132$111,787$780,914
54$898,180$165,606$35,534$770,758
55$907,276$91,203$0$758,021
56$914,701$10,554$0$750,265
57$920,202$0$0$746,359
58$923,498$0$0$747,558
59$924,278$0$0$747,708
60$922,195$0$0$745,475
61$916,863$0$0$740,542
62$907,857$0$0$732,556
63$894,703$0$0$721,124
64$876,876$0$0$705,811
65$853,794$0$0$686,138
66$824,814$0$0$661,571
67$789,221$0$0$631,519
68$746,226$0$0$595,330
69$694,956$0$0$552,280
70$634,444$0$0$501,571
71$563,621$0$0$442,317
72$481,304$0$0$373,541
73$386,187$0$0$294,163
74$276,825$0$0$202,987
75$151,623$0$0$98,695
76$8,817$0$0$0
77$0$0$0$0
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