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%18%
1 years$40,381$40,021$39,671$39,328$38,994$37,730
2 years$19,991$19,618$19,258$18,908$18,568$17,307
3 years$13,195$12,821$12,461$12,114$11,781$10,562
4 years$9,797$9,425$9,068$8,728$8,402$7,234
5 years$7,760$7,389$7,037$6,704$6,387$5,274
6 years$6,401$6,034$5,687$5,361$5,054$3,996
7 years$5,432$5,067$4,726$4,408$4,110$3,108
8 years$4,705$4,343$4,008$3,697$3,410$2,462
9 years$4,140$3,782$3,452$3,149$2,872$1,977
10 years$3,688$3,333$3,010$2,715$2,447$1,604
11 years$3,318$2,968$2,650$2,363$2,104$1,312
12 years$3,011$2,664$2,352$2,072$1,823$1,080
13 years$2,751$2,407$2,101$1,830$1,590$894
14 years$2,528$2,188$1,888$1,624$1,394$742
15 years$2,335$1,999$1,704$1,448$1,227$619
16 years$2,166$1,834$1,545$1,297$1,085$517
17 years$2,018$1,689$1,406$1,165$962$433
18 years$1,886$1,561$1,284$1,050$855$364
19 years$1,768$1,446$1,175$949$762$306
20 years$1,662$1,344$1,078$859$681$257
21 years$1,566$1,252$992$780$609$217
22 years$1,479$1,169$914$709$546$183
23 years$1,400$1,093$844$646$490$154
24 years$1,327$1,024$781$589$441$130
25 years$1,261$961$723$538$396$110
26 years$1,199$903$671$492$357$93
27 years$1,143$850$623$450$322$79
28 years$1,090$801$579$413$291$67
29 years$1,041$756$539$378$262$56
30 years$995$714$502$347$237$48
31 years$953$675$468$319$214$40
32 years$913$638$436$293$194$34
33 years$876$604$408$269$175$29
34 years$841$573$381$248$159$25
35 years$808$543$356$228$144$21
36 years$777$516$333$210$130$18
37 years$747$490$312$194$118$15
38 years$720$466$292$179$107$13
39 years$693$443$273$165$97$11
40 years$669$421$256$152$88$9
41 years$645$401$240$140$80$8
42 years$623$382$225$129$73$7
43 years$601$364$212$119$66$6
44 years$581$347$199$110$60$5
45 years$562$331$186$102$54$4
46 years$543$315$175$94$49$3
47 years$526$301$165$87$45$3
48 years$509$287$155$80$41$2
49 years$493$274$145$74$37$2
50 years$477$262$137$69$34$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $489,000, adding $2,937 every year, while hoping to spend $37,624 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: 78/7/15 Blend
39$489,000$489,000$489,000$489,000
40$541,908$515,991$508,411$582,241
41$557,150$501,242$485,411$594,485
42$572,687$484,511$460,380$602,841
43$588,508$465,658$433,209$610,958
44$604,601$444,541$403,787$618,797
45$620,951$421,004$371,994$626,316
46$637,541$394,887$337,710$633,469
47$654,351$366,017$300,804$640,207
48$671,357$334,214$261,143$646,475
49$688,531$299,286$218,586$652,212
50$705,840$261,030$172,988$657,355
51$723,248$219,232$124,196$661,832
52$740,712$173,668$72,049$665,564
53$758,184$124,096$16,381$668,469
54$775,608$70,266$0$670,451
55$792,922$11,912$0$678,298
56$810,056$0$0$688,257
57$826,930$0$0$701,561
58$843,453$0$0$715,473
59$859,525$0$0$728,988
60$875,033$0$0$742,009
61$889,849$0$0$754,425
62$903,832$0$0$766,115
63$916,823$0$0$776,942
64$928,644$0$0$786,752
65$939,097$0$0$795,376
66$947,962$0$0$802,623
67$954,993$0$0$808,282
68$959,917$0$0$812,118
69$962,430$0$0$813,869
70$962,195$0$0$813,244
71$958,835$0$0$809,921
72$951,936$0$0$803,542
73$941,034$0$0$793,708
74$925,619$0$0$779,980
75$905,122$0$0$761,869
76$878,915$0$0$738,834
77$846,301$0$0$710,276
78$806,510$0$0$675,532
79$758,686$0$0$633,867
80$701,888$0$0$584,470
81$635,068$0$0$526,441
82$557,074$0$0$458,788
83$466,626$0$0$380,411
84$362,314$0$0$290,097
85$242,577$0$0$186,504
86$105,691$0$0$68,149
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