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%19%
1 years$40,133$39,776$39,427$39,087$38,754$37,350
2 years$19,868$19,498$19,139$18,792$18,454$17,055
3 years$13,114$12,742$12,384$12,040$11,708$10,357
4 years$9,737$9,367$9,013$8,674$8,350$7,059
5 years$7,712$7,344$6,994$6,663$6,348$5,119
6 years$6,362$5,997$5,652$5,328$5,023$3,857
7 years$5,398$5,036$4,697$4,381$4,085$2,983
8 years$4,676$4,317$3,984$3,675$3,389$2,349
9 years$4,114$3,759$3,431$3,130$2,854$1,875
10 years$3,665$3,313$2,991$2,698$2,432$1,512
11 years$3,298$2,949$2,633$2,348$2,091$1,228
12 years$2,992$2,647$2,337$2,060$1,812$1,005
13 years$2,734$2,392$2,088$1,818$1,580$826
14 years$2,512$2,175$1,876$1,614$1,385$681
15 years$2,321$1,986$1,694$1,440$1,220$564
16 years$2,153$1,823$1,536$1,289$1,078$468
17 years$2,005$1,678$1,397$1,158$956$389
18 years$1,874$1,551$1,276$1,044$850$324
19 years$1,757$1,437$1,168$943$758$270
20 years$1,652$1,336$1,072$854$677$226
21 years$1,557$1,244$986$775$606$189
22 years$1,470$1,161$909$705$543$158
23 years$1,391$1,086$839$642$487$132
24 years$1,319$1,018$776$585$438$111
25 years$1,253$955$719$535$394$93
26 years$1,192$898$666$489$355$78
27 years$1,135$845$619$447$320$65
28 years$1,083$796$575$410$289$55
29 years$1,035$751$535$376$261$46
30 years$989$709$499$345$236$39
31 years$947$670$465$317$213$32
32 years$907$634$434$291$193$27
33 years$870$601$405$268$174$23
34 years$836$569$378$246$158$19
35 years$803$540$354$227$143$16
36 years$772$513$331$209$130$14
37 years$743$487$310$192$117$11
38 years$715$463$290$177$106$10
39 years$689$440$272$164$97$8
40 years$664$419$255$151$88$7
41 years$641$398$239$139$79$6
42 years$619$379$224$128$72$5
43 years$598$362$210$119$65$4
44 years$577$345$197$110$59$3
45 years$558$329$185$101$54$3
46 years$540$314$174$93$49$2
47 years$522$299$164$86$44$2
48 years$506$286$154$80$40$2
49 years$490$273$144$74$37$1
50 years$475$261$136$68$33$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $486,000, adding $4,250 every year, while hoping to spend $27,341 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: 45/31/24 Blend
39$486,000$486,000$486,000$486,000
40$539,956$514,198$506,665$560,346
41$565,941$510,303$494,548$571,274
42$593,660$505,301$481,108$580,123
43$623,261$499,108$466,273$589,174
44$654,906$491,638$449,966$598,460
45$688,774$482,795$432,107$608,019
46$725,059$472,482$412,612$617,895
47$763,974$460,593$391,394$628,139
48$805,755$447,018$368,362$638,807
49$850,660$431,639$343,419$649,966
50$898,970$414,332$316,467$661,691
51$950,997$394,966$287,400$674,067
52$1,007,080$373,401$256,110$687,192
53$1,067,595$349,491$222,483$701,174
54$1,132,954$323,080$186,399$716,138
55$1,203,607$294,003$147,736$732,225
56$1,280,053$262,087$106,363$749,591
57$1,362,837$227,147$62,144$768,414
58$1,452,559$188,991$14,939$788,895
59$1,549,881$147,412$0$811,257
60$1,655,528$102,195$0$844,827
61$1,770,299$53,110$0$885,484
62$1,895,073$0$0$929,757
63$2,030,817$0$0$978,069
64$2,178,593$0$0$1,050,437
65$2,339,573$0$0$1,129,324
66$2,515,043$0$0$1,215,368
67$2,706,422$0$0$1,309,269
68$2,915,268$0$0$1,411,802
69$3,143,301$0$0$1,523,816
70$3,392,408$0$0$1,646,248
71$3,664,672$0$0$1,780,128
72$3,962,384$0$0$1,926,592
73$4,288,065$0$0$2,086,889
74$4,644,494$0$0$2,262,396
75$5,034,729$0$0$2,454,628
76$5,462,137$0$0$2,665,253
77$5,930,427$0$0$2,896,111
78$6,443,685$0$0$3,149,224
79$7,006,408$0$0$3,426,823
80$7,623,550$0$0$3,731,363
81$8,300,570$0$0$4,065,549
82$9,043,477$0$0$4,432,360
83$9,858,893$0$0$4,835,077
84$10,754,110$0$0$5,277,316
85$11,737,162$0$0$5,763,058
86$12,816,898$0$0$6,296,691
87$14,003,068$0$0$6,883,048
88$15,306,411$0$0$7,527,452
89$16,738,758$0$0$8,235,768
90$18,313,144$0$0$9,014,459
91$20,043,928$0$0$9,870,644
92$21,946,933$0$0$10,812,166
93$24,039,587$0$0$11,847,667
94$26,341,095$0$0$12,986,667
95$28,872,616$0$0$14,239,658
96$31,657,460$0$0$15,618,197
97$34,721,313$0$0$17,135,018
98$38,092,476$0$0$18,804,154
99$41,802,129$0$0$20,641,065
100$45,884,629$0$0$22,662,786