Can I retire at age 40 with 485,000?

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 $485,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.4%
1 years$40,051$39,694$39,346$39,006$38,675$38,287
2 years$19,827$19,458$19,100$18,753$18,416$18,026
3 years$13,087$12,716$12,359$12,015$11,684$11,303
4 years$9,717$9,348$8,994$8,656$8,333$7,964
5 years$7,696$7,329$6,980$6,649$6,335$5,979
6 years$6,349$5,984$5,641$5,317$5,013$4,670
7 years$5,387$5,026$4,687$4,372$4,077$3,748
8 years$4,666$4,308$3,975$3,667$3,382$3,068
9 years$4,106$3,751$3,424$3,124$2,848$2,548
10 years$3,658$3,306$2,985$2,693$2,427$2,140
11 years$3,291$2,943$2,628$2,343$2,087$1,814
12 years$2,986$2,642$2,332$2,055$1,809$1,548
13 years$2,728$2,387$2,084$1,815$1,577$1,330
14 years$2,507$2,170$1,872$1,611$1,382$1,148
15 years$2,316$1,982$1,690$1,437$1,217$994
16 years$2,149$1,819$1,533$1,286$1,076$865
17 years$2,001$1,675$1,395$1,156$954$754
18 years$1,870$1,548$1,273$1,042$848$659
19 years$1,753$1,434$1,165$941$756$578
20 years$1,648$1,333$1,070$852$675$507
21 years$1,553$1,242$984$774$604$446
22 years$1,467$1,159$907$703$542$393
23 years$1,388$1,084$837$641$486$346
24 years$1,317$1,016$774$584$437$306
25 years$1,250$953$717$534$393$270
26 years$1,189$896$665$488$354$239
27 years$1,133$843$618$447$319$211
28 years$1,081$794$574$409$288$187
29 years$1,032$749$534$375$260$166
30 years$987$708$498$344$235$147
31 years$945$669$464$316$213$130
32 years$906$633$433$291$192$115
33 years$869$600$404$267$174$102
34 years$834$568$378$246$158$91
35 years$801$539$353$226$143$81
36 years$770$512$330$208$129$72
37 years$741$486$309$192$117$64
38 years$714$462$290$177$106$57
39 years$688$439$271$163$96$50
40 years$663$418$254$151$87$45
41 years$640$398$238$139$79$40
42 years$617$379$224$128$72$35
43 years$596$361$210$118$65$31
44 years$576$344$197$109$59$28
45 years$557$328$185$101$54$25
46 years$539$313$174$93$49$22
47 years$521$299$163$86$44$20
48 years$505$285$153$80$40$17
49 years$489$272$144$74$37$16
50 years$474$260$136$68$33$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $485,000, adding $4,959 every year, while hoping to spend $35,184 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: 75/12/13 Blend
39$485,000$485,000$485,000$485,000
40$539,585$513,880$506,363$578,243
41$557,187$501,625$485,890$592,189
42$575,406$487,590$463,553$602,581
43$594,266$471,651$439,251$613,003
44$613,795$453,676$412,880$623,447
45$634,023$433,526$384,332$633,905
46$654,978$411,054$353,492$644,368
47$676,694$386,103$320,242$654,827
48$699,204$358,510$284,457$665,274
49$722,546$328,100$246,009$675,699
50$746,756$294,688$204,762$686,093
51$771,878$258,080$160,574$696,446
52$797,954$218,070$113,297$706,749
53$825,031$174,441$62,778$716,992
54$853,159$126,963$8,856$727,167
55$882,391$75,394$0$737,264
56$912,784$19,478$0$754,029
57$944,400$0$0$772,451
58$977,304$0$0$796,737
59$1,011,566$0$0$824,708
60$1,047,262$0$0$853,854
61$1,084,473$0$0$884,240
62$1,123,287$0$0$915,939
63$1,163,799$0$0$949,030
64$1,206,109$0$0$983,594
65$1,250,329$0$0$1,019,724
66$1,296,577$0$0$1,057,518
67$1,344,981$0$0$1,097,080
68$1,395,682$0$0$1,138,525
69$1,448,830$0$0$1,181,979
70$1,504,588$0$0$1,227,576
71$1,563,136$0$0$1,275,463
72$1,624,665$0$0$1,325,798
73$1,689,386$0$0$1,378,755
74$1,757,527$0$0$1,434,522
75$1,829,337$0$0$1,493,303
76$1,905,087$0$0$1,555,323
77$1,985,072$0$0$1,620,825
78$2,069,613$0$0$1,690,073
79$2,159,063$0$0$1,763,359
80$2,253,805$0$0$1,840,998
81$2,354,258$0$0$1,923,337
82$2,460,879$0$0$2,010,752
83$2,574,171$0$0$2,103,658
84$2,694,680$0$0$2,202,506
85$2,823,006$0$0$2,307,791
86$2,959,806$0$0$2,420,055
87$3,105,798$0$0$2,539,892
88$3,261,770$0$0$2,667,951
89$3,428,586$0$0$2,804,945
90$3,607,191$0$0$2,951,656
91$3,798,625$0$0$3,108,940
92$4,004,024$0$0$3,277,739
93$4,224,640$0$0$3,459,083
94$4,461,843$0$0$3,654,104
95$4,717,139$0$0$3,864,048
96$4,992,180$0$0$4,090,278
97$5,288,784$0$0$4,334,294
98$5,608,944$0$0$4,597,745
99$5,954,853$0$0$4,882,440
100$6,328,919$0$0$5,190,369