Can I retire at age 40 with 488,000?

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 $488,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.1%
1 years$40,299$39,940$39,589$39,248$38,914$38,412
2 years$19,950$19,578$19,218$18,869$18,530$18,025
3 years$13,168$12,795$12,435$12,090$11,756$11,264
4 years$9,777$9,405$9,050$8,710$8,385$7,909
5 years$7,744$7,374$7,023$6,690$6,374$5,916
6 years$6,388$6,021$5,676$5,350$5,044$4,604
7 years$5,421$5,057$4,716$4,399$4,102$3,680
8 years$4,695$4,335$4,000$3,690$3,403$3,000
9 years$4,131$3,774$3,445$3,143$2,866$2,481
10 years$3,680$3,327$3,004$2,709$2,442$2,075
11 years$3,312$2,961$2,644$2,358$2,100$1,751
12 years$3,005$2,658$2,347$2,068$1,820$1,488
13 years$2,745$2,402$2,097$1,826$1,587$1,272
14 years$2,523$2,183$1,884$1,621$1,391$1,093
15 years$2,330$1,995$1,701$1,445$1,225$943
16 years$2,162$1,830$1,542$1,294$1,082$816
17 years$2,014$1,685$1,403$1,163$960$708
18 years$1,882$1,557$1,281$1,048$853$616
19 years$1,764$1,443$1,173$947$761$537
20 years$1,659$1,341$1,076$858$679$469
21 years$1,563$1,249$990$778$608$410
22 years$1,476$1,166$912$708$545$359
23 years$1,397$1,091$842$645$489$315
24 years$1,325$1,022$779$588$440$277
25 years$1,258$959$722$537$396$243
26 years$1,197$901$669$491$356$214
27 years$1,140$848$621$449$321$188
28 years$1,088$799$578$412$290$166
29 years$1,039$754$538$378$262$146
30 years$993$712$501$346$237$128
31 years$951$673$467$318$214$113
32 years$911$637$436$292$193$100
33 years$874$603$407$269$175$88
34 years$839$572$380$247$159$78
35 years$806$542$355$228$144$69
36 years$775$515$332$210$130$61
37 years$746$489$311$193$118$53
38 years$718$465$291$178$107$47
39 years$692$442$273$164$97$42
40 years$667$420$256$152$88$37
41 years$644$400$240$140$80$33
42 years$621$381$225$129$72$29
43 years$600$363$211$119$66$25
44 years$580$346$198$110$60$22
45 years$561$330$186$102$54$20
46 years$542$315$175$94$49$18
47 years$525$300$164$87$45$15
48 years$508$287$154$80$41$14
49 years$492$274$145$74$37$12
50 years$476$262$136$68$33$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $488,000, adding $4,735 every year, while hoping to spend $23,203 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: 67/15/18 Blend
39$488,000$488,000$488,000$488,000
40$542,660$516,796$509,232$576,319
41$573,324$517,431$501,604$600,056
42$606,337$517,320$492,942$622,866
43$641,916$516,401$483,188$647,242
44$680,296$514,610$472,279$673,336
45$721,738$511,877$460,152$701,318
46$766,526$508,130$446,738$731,374
47$814,975$503,291$431,967$763,710
48$867,429$497,279$415,764$798,555
49$924,266$490,005$398,052$836,160
50$985,905$481,379$378,750$876,804
51$1,052,802$471,302$357,774$920,793
52$1,125,463$459,671$335,034$968,468
53$1,204,441$446,375$310,439$1,020,202
54$1,290,347$431,300$283,891$1,076,412
55$1,383,851$414,323$255,290$1,137,553
56$1,485,693$395,313$224,531$1,204,131
57$1,596,683$374,134$191,503$1,276,704
58$1,717,718$350,639$156,091$1,355,888
59$1,849,780$324,675$118,175$1,442,364
60$1,993,954$296,081$77,630$1,536,882
61$2,151,431$264,683$34,325$1,640,272
62$2,323,525$230,300$0$1,753,450
63$2,511,682$192,742$0$1,879,708
64$2,717,491$151,804$0$2,025,063
65$2,942,706$107,274$0$2,184,176
66$3,189,256$58,924$0$2,358,436
67$3,459,266$6,517$0$2,549,372
68$3,755,075$0$0$2,758,673
69$4,079,259$0$0$2,996,486
70$4,434,657$0$0$3,258,406
71$4,824,395$0$0$3,545,664
72$5,251,913$0$0$3,860,802
73$5,721,005$0$0$4,206,619
74$6,235,845$0$0$4,586,198
75$6,801,036$0$0$5,002,934
76$7,421,643$0$0$5,460,569
77$8,103,250$0$0$5,963,225
78$8,852,006$0$0$6,515,440
79$9,674,685$0$0$7,122,215
80$10,578,750$0$0$7,789,061
81$11,572,423$0$0$8,522,048
82$12,664,762$0$0$9,327,862
83$13,865,746$0$0$10,213,871
84$15,186,369$0$0$11,188,191
85$16,638,745$0$0$12,259,766
86$18,236,220$0$0$13,438,449
87$19,993,497$0$0$14,735,095
88$21,926,777$0$0$16,161,666
89$24,053,911$0$0$17,731,340
90$26,394,567$0$0$19,458,638
91$28,970,415$0$0$21,359,560
92$31,805,333$0$0$23,451,734
93$34,925,631$0$0$25,754,585
94$38,360,298$0$0$28,289,516
95$42,141,277$0$0$31,080,111
96$46,303,765$0$0$34,152,357
97$50,886,545$0$0$37,534,886
98$55,932,353$0$0$41,259,252
99$61,488,277$0$0$45,360,221
100$67,606,207$0$0$49,876,104