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%12.9%
1 years$40,051$39,694$39,346$39,006$38,675$38,207
2 years$19,827$19,458$19,100$18,753$18,416$17,946
3 years$13,087$12,716$12,359$12,015$11,684$11,225
4 years$9,717$9,348$8,994$8,656$8,333$7,890
5 years$7,696$7,329$6,980$6,649$6,335$5,908
6 years$6,349$5,984$5,641$5,317$5,013$4,602
7 years$5,387$5,026$4,687$4,372$4,077$3,683
8 years$4,666$4,308$3,975$3,667$3,382$3,006
9 years$4,106$3,751$3,424$3,124$2,848$2,489
10 years$3,658$3,306$2,985$2,693$2,427$2,084
11 years$3,291$2,943$2,628$2,343$2,087$1,761
12 years$2,986$2,642$2,332$2,055$1,809$1,499
13 years$2,728$2,387$2,084$1,815$1,577$1,283
14 years$2,507$2,170$1,872$1,611$1,382$1,103
15 years$2,316$1,982$1,690$1,437$1,217$953
16 years$2,149$1,819$1,533$1,286$1,076$826
17 years$2,001$1,675$1,395$1,156$954$718
18 years$1,870$1,548$1,273$1,042$848$625
19 years$1,753$1,434$1,165$941$756$546
20 years$1,648$1,333$1,070$852$675$478
21 years$1,553$1,242$984$774$604$418
22 years$1,467$1,159$907$703$542$367
23 years$1,388$1,084$837$641$486$322
24 years$1,317$1,016$774$584$437$283
25 years$1,250$953$717$534$393$249
26 years$1,189$896$665$488$354$220
27 years$1,133$843$618$447$319$194
28 years$1,081$794$574$409$288$171
29 years$1,032$749$534$375$260$151
30 years$987$708$498$344$235$133
31 years$945$669$464$316$213$117
32 years$906$633$433$291$192$104
33 years$869$600$404$267$174$92
34 years$834$568$378$246$158$81
35 years$801$539$353$226$143$72
36 years$770$512$330$208$129$63
37 years$741$486$309$192$117$56
38 years$714$462$290$177$106$50
39 years$688$439$271$163$96$44
40 years$663$418$254$151$87$39
41 years$640$398$238$139$79$34
42 years$617$379$224$128$72$30
43 years$596$361$210$118$65$27
44 years$576$344$197$109$59$24
45 years$557$328$185$101$54$21
46 years$539$313$174$93$49$19
47 years$521$299$163$86$44$17
48 years$505$285$153$80$40$15
49 years$489$272$144$74$37$13
50 years$474$260$136$68$33$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $485,000, adding $6,133 every year, while hoping to spend $26,608 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: 58/13/29 Blend
39$485,000$485,000$485,000$485,000
40$540,796$515,091$507,574$567,550
41$567,647$512,020$496,267$583,510
42$596,344$507,906$483,689$597,589
43$627,049$502,671$469,770$612,398
44$659,937$496,231$454,436$628,016
45$695,200$488,497$437,610$644,530
46$733,051$479,373$419,210$662,040
47$773,721$468,762$399,153$680,655
48$817,466$456,556$377,350$700,496
49$864,564$442,644$353,708$721,700
50$915,324$426,908$328,131$744,418
51$970,082$409,221$300,518$768,818
52$1,029,209$389,452$270,765$795,088
53$1,093,113$367,460$238,760$823,435
54$1,162,242$343,096$204,389$854,093
55$1,237,086$316,204$167,532$887,317
56$1,318,189$286,617$128,064$923,394
57$1,406,143$254,161$85,854$962,641
58$1,501,604$218,649$40,764$1,005,410
59$1,605,292$179,887$0$1,052,091
60$1,717,997$137,667$0$1,105,393
61$1,840,590$91,770$0$1,177,130
62$1,974,030$41,966$0$1,255,255
63$2,119,370$0$0$1,340,409
64$2,277,770$0$0$1,435,012
65$2,450,507$0$0$1,544,762
66$2,638,986$0$0$1,664,553
67$2,844,754$0$0$1,795,372
68$3,069,513$0$0$1,938,308
69$3,315,136$0$0$2,094,558
70$3,583,688$0$0$2,265,439
71$3,877,440$0$0$2,452,402
72$4,198,894$0$0$2,657,047
73$4,550,804$0$0$2,881,132
74$4,936,202$0$0$3,126,595
75$5,358,430$0$0$3,395,570
76$5,821,164$0$0$3,690,408
77$6,328,458$0$0$4,013,697
78$6,884,771$0$0$4,368,287
79$7,495,019$0$0$4,757,320
80$8,164,614$0$0$5,184,252
81$8,899,519$0$0$5,652,895
82$9,706,301$0$0$6,167,445
83$10,592,194$0$0$6,732,525
84$11,565,167$0$0$7,353,227
85$12,633,999$0$0$8,035,161
86$13,808,362$0$0$8,784,507
87$15,098,909$0$0$9,608,074
88$16,517,378$0$0$10,513,362
89$18,076,699$0$0$11,508,636
90$19,791,120$0$0$12,602,999
91$21,676,336$0$0$13,806,482
92$23,749,638$0$0$15,130,137
93$26,030,081$0$0$16,586,140
94$28,538,655$0$0$18,187,906
95$31,298,490$0$0$19,950,217
96$34,335,067$0$0$21,889,358
97$37,676,466$0$0$24,023,274
98$41,353,622$0$0$26,371,738
99$45,400,625$0$0$28,956,535
100$49,855,033$0$0$31,801,670