Can I retire at age 40 with 487,000?

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 $487,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.6%
1 years$40,216$39,858$39,508$39,167$38,834$38,413
2 years$19,909$19,538$19,179$18,830$18,492$18,068
3 years$13,141$12,768$12,410$12,065$11,732$11,318
4 years$9,757$9,386$9,031$8,692$8,368$7,967
5 years$7,728$7,359$7,009$6,676$6,361$5,975
6 years$6,375$6,009$5,664$5,339$5,033$4,662
7 years$5,410$5,046$4,707$4,390$4,093$3,738
8 years$4,686$4,326$3,992$3,682$3,396$3,055
9 years$4,123$3,766$3,438$3,136$2,860$2,534
10 years$3,673$3,320$2,997$2,704$2,437$2,126
11 years$3,305$2,955$2,639$2,353$2,096$1,800
12 years$2,998$2,653$2,342$2,064$1,816$1,535
13 years$2,739$2,397$2,092$1,822$1,584$1,316
14 years$2,518$2,179$1,880$1,617$1,388$1,134
15 years$2,326$1,991$1,697$1,443$1,222$982
16 years$2,158$1,826$1,539$1,292$1,080$852
17 years$2,010$1,682$1,400$1,161$958$742
18 years$1,878$1,554$1,278$1,046$852$648
19 years$1,761$1,440$1,170$945$759$567
20 years$1,655$1,338$1,074$856$678$497
21 years$1,560$1,247$988$777$607$437
22 years$1,473$1,164$910$706$544$384
23 years$1,394$1,088$841$643$488$338
24 years$1,322$1,020$777$587$439$298
25 years$1,256$957$720$536$395$263
26 years$1,194$899$668$490$356$232
27 years$1,138$847$620$448$321$205
28 years$1,085$798$577$411$289$181
29 years$1,037$753$537$377$261$160
30 years$991$711$500$346$236$142
31 years$949$672$466$318$213$125
32 years$909$636$435$292$193$111
33 years$872$602$406$268$175$98
34 years$837$571$379$247$158$87
35 years$804$541$355$227$143$77
36 years$773$514$332$209$130$68
37 years$744$488$310$193$118$61
38 years$717$464$291$178$107$54
39 years$691$441$272$164$97$48
40 years$666$419$255$151$88$42
41 years$642$399$239$139$80$38
42 years$620$380$225$129$72$33
43 years$599$362$211$119$66$30
44 years$579$345$198$110$60$26
45 years$559$329$186$101$54$23
46 years$541$314$174$94$49$21
47 years$524$300$164$86$45$18
48 years$507$286$154$80$40$16
49 years$491$273$145$74$37$14
50 years$475$261$136$68$33$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $487,000, adding $2,143 every year, while hoping to spend $26,575 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: 61/10/29 Blend
39$487,000$487,000$487,000$487,000
40$538,885$513,074$505,525$567,414
41$565,575$509,939$494,184$583,971
42$594,098$505,759$481,573$598,994
43$624,610$500,456$467,621$614,838
44$657,288$493,946$452,254$631,589
45$692,321$486,139$435,394$649,342
46$729,919$476,942$416,961$668,204
47$770,313$466,253$396,871$688,294
48$813,753$453,968$375,034$709,745
49$860,518$439,974$351,360$732,703
50$910,911$424,153$325,751$757,331
51$965,267$406,380$298,106$783,810
52$1,023,952$386,521$268,321$812,343
53$1,087,371$364,436$236,286$843,152
54$1,155,966$339,977$201,885$876,486
55$1,230,225$312,986$164,998$912,620
56$1,310,683$283,297$125,501$951,859
57$1,397,930$250,736$83,262$994,542
58$1,492,613$215,116$38,146$1,041,044
59$1,595,445$176,242$0$1,091,780
60$1,707,209$133,906$0$1,150,306
61$1,828,767$87,891$0$1,226,835
62$1,961,068$37,964$0$1,310,164
63$2,105,155$0$0$1,400,968
64$2,262,177$0$0$1,501,767
65$2,433,398$0$0$1,616,269
66$2,620,208$0$0$1,741,232
67$2,824,139$0$0$1,877,684
68$3,046,876$0$0$2,026,759
69$3,290,274$0$0$2,189,701
70$3,556,377$0$0$2,367,885
71$3,847,432$0$0$2,562,821
72$4,165,917$0$0$2,776,172
73$4,514,557$0$0$3,009,772
74$4,896,356$0$0$3,265,637
75$5,314,620$0$0$3,545,990
76$5,772,990$0$0$3,853,277
77$6,275,477$0$0$4,190,195
78$6,826,497$0$0$4,559,710
79$7,430,915$0$0$4,965,092
80$8,094,090$0$0$5,409,942
81$8,821,922$0$0$5,898,227
82$9,620,914$0$0$6,434,316
83$10,498,227$0$0$7,023,022
84$11,461,749$0$0$7,669,647
85$12,520,170$0$0$8,380,031
86$13,683,064$0$0$9,160,609
87$14,960,977$0$0$10,018,469
88$16,365,528$0$0$10,961,420
89$17,909,516$0$0$11,998,066
90$19,607,045$0$0$13,137,885
91$21,473,650$0$0$14,391,320
92$23,526,450$0$0$15,769,876
93$25,784,303$0$0$17,286,231
94$28,267,990$0$0$18,954,350
95$31,000,403$0$0$20,789,622
96$34,006,769$0$0$22,809,003
97$37,314,881$0$0$25,031,175
98$40,955,362$0$0$27,476,721
99$44,961,954$0$0$30,168,322
100$49,371,836$0$0$33,130,969