Can I retire at age 40 with 480,000?

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 $480,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.8%
1 years$39,638$39,285$38,940$38,604$38,276$36,918
2 years$19,623$19,257$18,903$18,560$18,227$16,873
3 years$12,952$12,585$12,232$11,891$11,564$10,257
4 years$9,617$9,251$8,901$8,567$8,247$6,997
5 years$7,617$7,253$6,908$6,580$6,269$5,080
6 years$6,284$5,923$5,583$5,262$4,961$3,832
7 years$5,332$4,974$4,639$4,326$4,034$2,966
8 years$4,618$4,264$3,934$3,629$3,347$2,339
9 years$4,064$3,712$3,389$3,091$2,819$1,869
10 years$3,620$3,272$2,954$2,665$2,402$1,509
11 years$3,257$2,913$2,601$2,319$2,065$1,228
12 years$2,955$2,614$2,308$2,034$1,790$1,005
13 years$2,700$2,363$2,062$1,796$1,561$827
14 years$2,481$2,148$1,853$1,594$1,368$684
15 years$2,292$1,962$1,673$1,422$1,205$567
16 years$2,127$1,800$1,517$1,273$1,065$471
17 years$1,981$1,658$1,380$1,144$944$392
18 years$1,851$1,532$1,260$1,031$839$327
19 years$1,735$1,420$1,153$931$748$273
20 years$1,631$1,319$1,059$844$668$229
21 years$1,537$1,229$974$766$598$191
22 years$1,452$1,147$897$696$536$160
23 years$1,374$1,073$829$634$481$135
24 years$1,303$1,005$766$578$433$113
25 years$1,238$943$710$528$389$95
26 years$1,177$887$658$483$351$80
27 years$1,121$834$611$442$316$67
28 years$1,070$786$568$405$285$56
29 years$1,022$742$529$371$258$47
30 years$977$700$493$341$233$40
31 years$935$662$459$313$210$33
32 years$896$627$428$288$190$28
33 years$860$593$400$265$172$24
34 years$825$562$374$243$156$20
35 years$793$533$349$224$141$17
36 years$762$506$327$206$128$14
37 years$734$481$306$190$116$12
38 years$706$457$287$175$105$10
39 years$681$435$268$162$95$8
40 years$656$413$252$149$86$7
41 years$633$394$236$137$78$6
42 years$611$375$221$127$71$5
43 years$590$357$208$117$65$4
44 years$570$340$195$108$59$4
45 years$551$325$183$100$53$3
46 years$533$310$172$92$48$3
47 years$516$295$162$85$44$2
48 years$500$282$152$79$40$2
49 years$484$269$143$73$36$1
50 years$469$257$134$67$33$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $480,000, adding $3,517 every year, while hoping to spend $30,235 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: 87/6/7 Blend
39$480,000$480,000$480,000$480,000
40$532,588$507,148$499,708$578,343
41$554,742$499,828$484,278$601,372
42$578,142$491,137$467,318$622,129
43$602,885$480,974$448,745$643,965
44$629,072$469,235$428,471$666,968
45$656,819$455,809$406,406$691,233
46$686,248$440,577$382,455$716,864
47$717,496$423,416$356,518$743,978
48$750,711$404,194$328,492$772,700
49$786,055$382,770$298,267$803,168
50$823,705$358,999$265,731$835,537
51$863,855$332,722$230,766$869,973
52$906,719$303,776$193,248$906,663
53$952,530$271,987$153,047$945,808
54$1,001,544$237,170$110,029$987,634
55$1,054,040$199,130$64,054$1,032,387
56$1,110,326$157,662$14,974$1,080,337
57$1,170,740$112,548$0$1,131,784
58$1,235,652$63,559$0$1,189,851
59$1,305,468$10,453$0$1,253,481
60$1,380,634$0$0$1,321,967
61$1,461,641$0$0$1,398,866
62$1,549,026$0$0$1,482,567
63$1,643,381$0$0$1,572,949
64$1,745,354$0$0$1,670,632
65$1,855,662$0$0$1,776,303
66$1,975,087$0$0$1,890,713
67$2,104,494$0$0$2,014,689
68$2,244,830$0$0$2,149,142
69$2,397,139$0$0$2,295,070
70$2,562,569$0$0$2,453,575
71$2,742,382$0$0$2,625,866
72$2,937,967$0$0$2,813,275
73$3,150,851$0$0$3,017,266
74$3,382,715$0$0$3,239,450
75$3,635,409$0$0$3,481,602
76$3,910,969$0$0$3,745,673
77$4,211,636$0$0$4,033,810
78$4,539,877$0$0$4,348,380
79$4,898,405$0$0$4,691,983
80$5,290,210$0$0$5,067,487
81$5,718,582$0$0$5,478,044
82$6,187,145$0$0$5,927,130
83$6,699,887$0$0$6,418,567
84$7,261,201$0$0$6,956,567
85$7,875,924$0$0$7,545,768
86$8,549,381$0$0$8,191,275
87$9,287,440$0$0$8,898,713
88$10,096,561$0$0$9,674,275
89$10,983,859$0$0$10,524,783
90$11,957,171$0$0$11,457,751
91$13,025,129$0$0$12,481,454
92$14,197,240$0$0$13,605,007
93$15,483,979$0$0$14,838,452
94$16,896,882$0$0$16,192,849
95$18,448,658$0$0$17,680,381
96$20,153,305$0$0$19,314,472
97$22,026,248$0$0$21,109,907
98$24,084,476$0$0$23,082,975
99$26,346,707$0$0$25,251,621
100$28,833,562$0$0$27,635,616