Can I retire at age 40 with 489,000?

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 $489,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.6%
1 years$40,381$40,021$39,671$39,328$38,994$38,411
2 years$19,991$19,618$19,258$18,908$18,568$17,983
3 years$13,195$12,821$12,461$12,114$11,781$11,210
4 years$9,797$9,425$9,068$8,728$8,402$7,851
5 years$7,760$7,389$7,037$6,704$6,387$5,857
6 years$6,401$6,034$5,687$5,361$5,054$4,546
7 years$5,432$5,067$4,726$4,408$4,110$3,624
8 years$4,705$4,343$4,008$3,697$3,410$2,946
9 years$4,140$3,782$3,452$3,149$2,872$2,429
10 years$3,688$3,333$3,010$2,715$2,447$2,025
11 years$3,318$2,968$2,650$2,363$2,104$1,704
12 years$3,011$2,664$2,352$2,072$1,823$1,443
13 years$2,751$2,407$2,101$1,830$1,590$1,230
14 years$2,528$2,188$1,888$1,624$1,394$1,053
15 years$2,335$1,999$1,704$1,448$1,227$905
16 years$2,166$1,834$1,545$1,297$1,085$781
17 years$2,018$1,689$1,406$1,165$962$675
18 years$1,886$1,561$1,284$1,050$855$585
19 years$1,768$1,446$1,175$949$762$508
20 years$1,662$1,344$1,078$859$681$442
21 years$1,566$1,252$992$780$609$385
22 years$1,479$1,169$914$709$546$336
23 years$1,400$1,093$844$646$490$294
24 years$1,327$1,024$781$589$441$257
25 years$1,261$961$723$538$396$225
26 years$1,199$903$671$492$357$197
27 years$1,143$850$623$450$322$173
28 years$1,090$801$579$413$291$151
29 years$1,041$756$539$378$262$133
30 years$995$714$502$347$237$116
31 years$953$675$468$319$214$102
32 years$913$638$436$293$194$90
33 years$876$604$408$269$175$79
34 years$841$573$381$248$159$69
35 years$808$543$356$228$144$61
36 years$777$516$333$210$130$54
37 years$747$490$312$194$118$47
38 years$720$466$292$179$107$41
39 years$693$443$273$165$97$36
40 years$669$421$256$152$88$32
41 years$645$401$240$140$80$28
42 years$623$382$225$129$73$25
43 years$601$364$212$119$66$22
44 years$581$347$199$110$60$19
45 years$562$331$186$102$54$17
46 years$543$315$175$94$49$15
47 years$526$301$165$87$45$13
48 years$509$287$155$80$41$12
49 years$493$274$145$74$37$10
50 years$477$262$137$69$34$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $489,000, adding $6,304 every year, while hoping to spend $40,422 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: 61/17/22 Blend
39$489,000$489,000$489,000$489,000
40$545,381$519,464$511,884$575,132
41$558,001$501,909$486,023$578,463
42$570,553$482,139$457,942$577,096
43$582,989$460,003$427,522$574,700
44$595,251$435,340$394,642$571,182
45$607,278$407,983$359,173$566,439
46$618,997$377,751$320,982$560,362
47$630,330$344,456$279,930$552,831
48$641,186$307,897$235,871$543,719
49$651,467$267,864$188,652$532,886
50$661,061$224,133$138,116$520,181
51$669,841$176,468$84,095$505,441
52$677,671$124,620$26,418$488,488
53$684,393$68,326$0$469,129
54$689,835$7,308$0$455,404
55$693,804$0$0$445,994
56$696,087$0$0$445,476
57$696,446$0$0$445,010
58$694,616$0$0$443,051
59$690,304$0$0$439,400
60$683,185$0$0$433,838
61$672,898$0$0$426,122
62$659,041$0$0$415,982
63$641,173$0$0$403,119
64$618,803$0$0$387,202
65$591,385$0$0$367,865
66$558,319$0$0$344,703
67$518,939$0$0$317,267
68$472,508$0$0$285,060
69$418,210$0$0$247,534
70$355,146$0$0$204,083
71$282,319$0$0$154,036
72$198,629$0$0$96,651
73$102,859$0$0$31,111
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0