Can I retire at age 40 with 486,000?

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 $486,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$40,133$39,776$39,427$39,087$38,754$38,510
2 years$19,868$19,498$19,139$18,792$18,454$18,208
3 years$13,114$12,742$12,384$12,040$11,708$11,467
4 years$9,737$9,367$9,013$8,674$8,350$8,117
5 years$7,712$7,344$6,994$6,663$6,348$6,122
6 years$6,362$5,997$5,652$5,328$5,023$4,806
7 years$5,398$5,036$4,697$4,381$4,085$3,876
8 years$4,676$4,317$3,984$3,675$3,389$3,189
9 years$4,114$3,759$3,431$3,130$2,854$2,662
10 years$3,665$3,313$2,991$2,698$2,432$2,248
11 years$3,298$2,949$2,633$2,348$2,091$1,916
12 years$2,992$2,647$2,337$2,060$1,812$1,645
13 years$2,734$2,392$2,088$1,818$1,580$1,421
14 years$2,512$2,175$1,876$1,614$1,385$1,233
15 years$2,321$1,986$1,694$1,440$1,220$1,075
16 years$2,153$1,823$1,536$1,289$1,078$941
17 years$2,005$1,678$1,397$1,158$956$826
18 years$1,874$1,551$1,276$1,044$850$727
19 years$1,757$1,437$1,168$943$758$641
20 years$1,652$1,336$1,072$854$677$566
21 years$1,557$1,244$986$775$606$501
22 years$1,470$1,161$909$705$543$444
23 years$1,391$1,086$839$642$487$394
24 years$1,319$1,018$776$585$438$351
25 years$1,253$955$719$535$394$312
26 years$1,192$898$666$489$355$278
27 years$1,135$845$619$447$320$247
28 years$1,083$796$575$410$289$221
29 years$1,035$751$535$376$261$197
30 years$989$709$499$345$236$176
31 years$947$670$465$317$213$157
32 years$907$634$434$291$193$140
33 years$870$601$405$268$174$125
34 years$836$569$378$246$158$112
35 years$803$540$354$227$143$100
36 years$772$513$331$209$130$90
37 years$743$487$310$192$117$80
38 years$715$463$290$177$106$72
39 years$689$440$272$164$97$64
40 years$664$419$255$151$88$58
41 years$641$398$239$139$79$52
42 years$619$379$224$128$72$46
43 years$598$362$210$119$65$41
44 years$577$345$197$110$59$37
45 years$558$329$185$101$54$33
46 years$540$314$174$93$49$30
47 years$522$299$164$86$44$27
48 years$506$286$154$80$40$24
49 years$490$273$144$74$37$21
50 years$475$261$136$68$33$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $486,000, adding $3,099 every year, while hoping to spend $20,460 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: 66/12/22 Blend
39$486,000$486,000$486,000$486,000
40$538,769$513,011$505,478$571,108
41$571,954$516,379$500,642$596,580
42$607,838$519,226$494,958$621,801
43$646,675$521,506$488,377$648,895
44$688,744$523,168$480,846$678,049
45$734,351$524,159$472,310$709,464
46$783,834$524,422$462,711$743,367
47$837,564$523,897$451,990$780,007
48$895,948$522,520$440,084$819,657
49$959,435$520,224$426,928$862,620
50$1,028,519$516,936$412,451$909,232
51$1,103,743$512,581$396,583$959,861
52$1,185,704$507,078$379,249$1,014,914
53$1,275,062$500,340$360,369$1,074,843
54$1,372,539$492,277$339,862$1,140,142
55$1,478,932$482,793$317,642$1,211,360
56$1,595,118$471,786$293,618$1,289,103
57$1,722,064$459,147$267,698$1,374,037
58$1,860,832$444,762$239,784$1,466,898
59$2,012,593$428,511$209,772$1,568,501
60$2,178,635$410,266$177,557$1,679,742
61$2,360,376$389,890$143,026$1,801,609
62$2,559,381$367,241$106,063$1,935,197
63$2,777,368$342,166$66,547$2,081,708
64$3,016,234$314,506$24,351$2,242,473
65$3,278,064$284,092$0$2,418,958
66$3,565,158$250,743$0$2,617,635
67$3,880,047$214,272$0$2,841,850
68$4,225,518$174,478$0$3,087,884
69$4,604,643$131,149$0$3,357,942
70$5,020,804$84,063$0$3,654,457
71$5,477,728$32,985$0$3,980,110
72$5,979,520$0$0$4,337,855
73$6,530,701$0$0$4,733,895
74$7,136,253$0$0$5,173,820
75$7,801,662$0$0$5,657,266
76$8,532,975$0$0$6,188,628
77$9,336,852$0$0$6,772,750
78$10,220,630$0$0$7,414,968
79$11,192,392$0$0$8,121,161
80$12,261,046$0$0$8,897,807
81$13,436,404$0$0$9,752,041
82$14,729,278$0$0$10,691,728
83$16,151,579$0$0$11,725,529
84$17,716,433$0$0$12,862,990
85$19,438,299$0$0$14,114,629
86$21,333,111$0$0$15,492,032
87$23,418,426$0$0$17,007,968
88$25,713,587$0$0$18,676,505
89$28,239,908$0$0$20,513,146
90$31,020,876$0$0$22,534,971
91$34,082,368$0$0$24,760,801
92$37,452,899$0$0$27,211,374
93$41,163,889$0$0$29,909,542
94$45,249,960$0$0$32,880,485
95$49,749,263$0$0$36,151,950
96$54,703,833$0$0$39,754,510
97$60,159,995$0$0$43,721,857
98$66,168,791$0$0$48,091,112
99$72,786,467$0$0$52,903,185
100$80,075,003$0$0$58,203,153