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%
1 years$40,133$39,776$39,427$39,087$38,754$38,591
2 years$19,868$19,498$19,139$18,792$18,454$18,290
3 years$13,114$12,742$12,384$12,040$11,708$11,547
4 years$9,737$9,367$9,013$8,674$8,350$8,194
5 years$7,712$7,344$6,994$6,663$6,348$6,197
6 years$6,362$5,997$5,652$5,328$5,023$4,877
7 years$5,398$5,036$4,697$4,381$4,085$3,945
8 years$4,676$4,317$3,984$3,675$3,389$3,254
9 years$4,114$3,759$3,431$3,130$2,854$2,725
10 years$3,665$3,313$2,991$2,698$2,432$2,308
11 years$3,298$2,949$2,633$2,348$2,091$1,973
12 years$2,992$2,647$2,337$2,060$1,812$1,699
13 years$2,734$2,392$2,088$1,818$1,580$1,472
14 years$2,512$2,175$1,876$1,614$1,385$1,282
15 years$2,321$1,986$1,694$1,440$1,220$1,122
16 years$2,153$1,823$1,536$1,289$1,078$985
17 years$2,005$1,678$1,397$1,158$956$867
18 years$1,874$1,551$1,276$1,044$850$766
19 years$1,757$1,437$1,168$943$758$678
20 years$1,652$1,336$1,072$854$677$601
21 years$1,557$1,244$986$775$606$534
22 years$1,470$1,161$909$705$543$475
23 years$1,391$1,086$839$642$487$423
24 years$1,319$1,018$776$585$438$378
25 years$1,253$955$719$535$394$337
26 years$1,192$898$666$489$355$301
27 years$1,135$845$619$447$320$270
28 years$1,083$796$575$410$289$241
29 years$1,035$751$535$376$261$216
30 years$989$709$499$345$236$194
31 years$947$670$465$317$213$174
32 years$907$634$434$291$193$156
33 years$870$601$405$268$174$140
34 years$836$569$378$246$158$126
35 years$803$540$354$227$143$113
36 years$772$513$331$209$130$102
37 years$743$487$310$192$117$91
38 years$715$463$290$177$106$82
39 years$689$440$272$164$97$74
40 years$664$419$255$151$88$66
41 years$641$398$239$139$79$60
42 years$619$379$224$128$72$54
43 years$598$362$210$119$65$48
44 years$577$345$197$110$59$43
45 years$558$329$185$101$54$39
46 years$540$314$174$93$49$35
47 years$522$299$164$86$44$32
48 years$506$286$154$80$40$29
49 years$490$273$144$74$37$26
50 years$475$261$136$68$33$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $486,000, adding $3,818 every year, while hoping to spend $28,237 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: 75/5/20 Blend
39$486,000$486,000$486,000$486,000
40$539,510$513,752$506,219$577,150
41$564,496$508,882$493,134$597,751
42$591,085$502,827$478,663$616,499
43$619,409$495,499$462,732$636,315
44$649,615$486,805$445,260$657,299
45$681,864$476,646$426,164$679,562
46$716,330$464,919$405,357$703,224
47$753,207$451,511$382,748$728,421
48$792,706$436,306$358,241$755,301
49$835,057$419,181$331,738$784,029
50$880,516$400,003$303,134$814,786
51$929,360$378,635$272,320$847,773
52$981,896$354,929$239,184$883,212
53$1,038,459$328,731$203,607$921,347
54$1,099,419$299,875$165,464$962,451
55$1,165,180$268,190$124,628$1,006,821
56$1,236,188$233,491$80,963$1,054,788
57$1,312,931$195,584$34,327$1,106,718
58$1,395,948$154,266$0$1,163,014
59$1,485,830$109,320$0$1,227,416
60$1,583,225$60,517$0$1,305,154
61$1,688,849$7,617$0$1,389,471
62$1,803,487$0$0$1,481,003
63$1,928,002$0$0$1,583,181
64$2,063,346$0$0$1,694,717
65$2,210,563$0$0$1,816,058
66$2,370,804$0$0$1,948,151
67$2,545,335$0$0$2,092,045
68$2,735,549$0$0$2,248,888
69$2,942,978$0$0$2,419,949
70$3,169,309$0$0$2,606,621
71$3,416,400$0$0$2,810,438
72$3,686,294$0$0$3,033,089
73$3,981,243$0$0$3,276,434
74$4,303,723$0$0$3,542,521
75$4,656,462$0$0$3,833,603
76$5,042,464$0$0$4,152,162
77$5,465,036$0$0$4,500,932
78$5,927,820$0$0$4,882,922
79$6,434,827$0$0$5,301,445
80$6,990,473$0$0$5,760,153
81$7,599,622$0$0$6,263,065
82$8,267,633$0$0$6,814,608
83$9,000,406$0$0$7,419,659
84$9,804,439$0$0$8,083,589
85$10,686,893$0$0$8,812,314
86$11,655,653$0$0$9,612,351
87$12,719,405$0$0$10,490,880
88$13,887,719$0$0$11,455,807
89$15,171,135$0$0$12,515,845
90$16,581,266$0$0$13,680,590
91$18,130,904$0$0$14,960,616
92$19,834,144$0$0$16,367,569
93$21,706,511$0$0$17,914,283
94$23,765,113$0$0$19,614,893
95$26,028,795$0$0$21,484,976
96$28,518,320$0$0$23,541,693
97$31,256,568$0$0$25,803,950
98$34,268,741$0$0$28,292,579
99$37,582,613$0$0$31,030,532
100$41,228,781$0$0$34,043,098