Can I retire at age 40 with 487,000?

Use the below retirement simulation to view the chances of a successful retirement.
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%18.8%
1 years$40,216$39,858$39,508$39,167$38,834$37,456
2 years$19,909$19,538$19,179$18,830$18,492$17,119
3 years$13,141$12,768$12,410$12,065$11,732$10,406
4 years$9,757$9,386$9,031$8,692$8,368$7,099
5 years$7,728$7,359$7,009$6,676$6,361$5,154
6 years$6,375$6,009$5,664$5,339$5,033$3,888
7 years$5,410$5,046$4,707$4,390$4,093$3,010
8 years$4,686$4,326$3,992$3,682$3,396$2,373
9 years$4,123$3,766$3,438$3,136$2,860$1,896
10 years$3,673$3,320$2,997$2,704$2,437$1,531
11 years$3,305$2,955$2,639$2,353$2,096$1,246
12 years$2,998$2,653$2,342$2,064$1,816$1,020
13 years$2,739$2,397$2,092$1,822$1,584$839
14 years$2,518$2,179$1,880$1,617$1,388$693
15 years$2,326$1,991$1,697$1,443$1,222$575
16 years$2,158$1,826$1,539$1,292$1,080$478
17 years$2,010$1,682$1,400$1,161$958$398
18 years$1,878$1,554$1,278$1,046$852$332
19 years$1,761$1,440$1,170$945$759$277
20 years$1,655$1,338$1,074$856$678$232
21 years$1,560$1,247$988$777$607$194
22 years$1,473$1,164$910$706$544$163
23 years$1,394$1,088$841$643$488$137
24 years$1,322$1,020$777$587$439$115
25 years$1,256$957$720$536$395$96
26 years$1,194$899$668$490$356$81
27 years$1,138$847$620$448$321$68
28 years$1,085$798$577$411$289$57
29 years$1,037$753$537$377$261$48
30 years$991$711$500$346$236$40
31 years$949$672$466$318$213$34
32 years$909$636$435$292$193$29
33 years$872$602$406$268$175$24
34 years$837$571$379$247$158$20
35 years$804$541$355$227$143$17
36 years$773$514$332$209$130$14
37 years$744$488$310$193$118$12
38 years$717$464$291$178$107$10
39 years$691$441$272$164$97$9
40 years$666$419$255$151$88$7
41 years$642$399$239$139$80$6
42 years$620$380$225$129$72$5
43 years$599$362$211$119$66$4
44 years$579$345$198$110$60$4
45 years$559$329$186$101$54$3
46 years$541$314$174$94$49$3
47 years$524$300$164$86$45$2
48 years$507$286$154$80$40$2
49 years$491$273$145$74$37$2
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 $487,000, adding $2,095 every year, while hoping to spend $33,549 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: 47/37/16 Blend
39$487,000$487,000$487,000$487,000
40$538,835$513,024$505,475$561,635
41$558,100$502,466$486,713$567,117
42$578,206$490,267$466,198$569,484
43$599,203$476,310$443,835$571,327
44$621,145$460,472$419,527$572,611
45$644,092$442,625$393,171$573,298
46$668,105$422,630$364,658$573,351
47$693,256$400,343$333,878$572,731
48$719,617$375,608$300,712$571,397
49$747,270$348,265$265,038$569,307
50$776,302$318,141$226,727$566,420
51$806,810$285,055$185,647$562,693
52$838,895$248,813$141,658$558,080
53$872,672$209,215$94,613$552,539
54$908,263$166,045$44,361$546,024
55$945,801$119,076$0$538,491
56$985,433$68,071$0$531,476
57$1,027,316$12,776$0$531,540
58$1,071,625$0$0$531,085
59$1,118,548$0$0$549,268
60$1,168,292$0$0$574,086
61$1,221,083$0$0$600,451
62$1,277,168$0$0$628,492
63$1,336,817$0$0$658,347
64$1,400,325$0$0$690,168
65$1,468,017$0$0$724,122
66$1,540,247$0$0$760,392
67$1,617,402$0$0$799,176
68$1,699,908$0$0$840,696
69$1,788,233$0$0$885,190
70$1,882,887$0$0$932,924
71$1,984,432$0$0$984,186
72$2,093,483$0$0$1,039,293
73$2,210,717$0$0$1,098,596
74$2,336,875$0$0$1,162,475
75$2,472,772$0$0$1,231,354
76$2,619,303$0$0$1,305,692
77$2,777,451$0$0$1,385,998
78$2,948,295$0$0$1,472,830
79$3,133,024$0$0$1,566,801
80$3,332,941$0$0$1,668,584
81$3,549,480$0$0$1,778,922
82$3,784,219$0$0$1,898,628
83$4,038,891$0$0$2,028,600
84$4,315,403$0$0$2,169,822
85$4,615,852$0$0$2,323,380
86$4,942,546$0$0$2,490,466
87$5,298,023$0$0$2,672,393
88$5,685,075$0$0$2,870,606
89$6,106,777$0$0$3,086,694
90$6,566,509$0$0$3,322,405
91$7,067,995$0$0$3,579,667
92$7,615,331$0$0$3,860,599
93$8,213,026$0$0$4,167,533
94$8,866,046$0$0$4,503,039
95$9,579,856$0$0$4,869,945
96$10,360,473$0$0$5,271,365
97$11,214,522$0$0$5,710,727
98$12,149,298$0$0$6,191,806
99$13,172,835$0$0$6,718,762
100$14,293,978$0$0$7,296,171