Can I retire at age 40 with 490,000?

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 $490,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$40,464$40,103$39,752$39,408$39,073$37,762
2 years$20,032$19,658$19,297$18,946$18,606$17,298
3 years$13,222$12,847$12,486$12,139$11,805$10,541
4 years$9,817$9,444$9,087$8,746$8,419$7,209
5 years$7,775$7,404$7,052$6,717$6,400$5,247
6 years$6,415$6,046$5,699$5,372$5,064$3,969
7 years$5,443$5,077$4,736$4,417$4,119$3,081
8 years$4,714$4,352$4,016$3,705$3,417$2,437
9 years$4,148$3,789$3,459$3,156$2,877$1,953
10 years$3,695$3,340$3,016$2,720$2,452$1,582
11 years$3,325$2,974$2,655$2,368$2,109$1,291
12 years$3,017$2,669$2,356$2,077$1,827$1,061
13 years$2,756$2,412$2,105$1,833$1,593$876
14 years$2,533$2,192$1,892$1,627$1,397$726
15 years$2,340$2,003$1,708$1,451$1,230$604
16 years$2,171$1,838$1,548$1,300$1,087$504
17 years$2,022$1,692$1,409$1,168$964$421
18 years$1,890$1,564$1,286$1,052$857$353
19 years$1,772$1,449$1,177$951$764$296
20 years$1,665$1,347$1,081$861$682$248
21 years$1,569$1,254$994$782$610$209
22 years$1,482$1,171$916$711$547$176
23 years$1,403$1,095$846$647$491$148
24 years$1,330$1,026$782$590$442$125
25 years$1,263$963$725$539$397$105
26 years$1,202$905$672$493$358$89
27 years$1,145$852$624$451$323$75
28 years$1,092$803$580$413$291$63
29 years$1,043$757$540$379$263$53
30 years$997$715$503$348$238$45
31 years$955$676$469$319$215$38
32 years$915$640$437$294$194$32
33 years$878$606$408$270$176$27
34 years$842$574$382$248$159$23
35 years$809$544$357$229$144$19
36 years$778$517$334$211$131$16
37 years$749$491$312$194$118$14
38 years$721$466$292$179$107$12
39 years$695$444$274$165$97$10
40 years$670$422$257$152$88$8
41 years$646$402$241$140$80$7
42 years$624$383$226$130$73$6
43 years$603$365$212$120$66$5
44 years$582$347$199$110$60$4
45 years$563$331$187$102$54$4
46 years$544$316$175$94$49$3
47 years$527$302$165$87$45$3
48 years$510$288$155$80$41$2
49 years$494$275$146$74$37$2
50 years$478$263$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 $490,000, adding $2,773 every year, while hoping to spend $28,265 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: 32/40/28 Blend
39$490,000$490,000$490,000$490,000
40$542,840$516,870$509,275$555,504
41$568,136$512,123$496,262$560,696
42$595,065$506,196$481,866$563,598
43$623,764$499,002$466,010$566,171
44$654,381$490,447$448,616$568,407
45$687,082$480,433$429,598$570,297
46$722,046$468,855$408,872$571,837
47$759,471$455,605$386,344$573,024
48$799,571$440,564$361,921$573,856
49$842,585$423,609$335,503$574,338
50$888,772$404,609$306,985$574,476
51$938,417$383,426$276,260$574,280
52$991,835$359,913$243,214$573,768
53$1,049,369$333,915$207,729$572,961
54$1,111,397$305,269$169,680$571,889
55$1,178,333$273,802$128,939$570,588
56$1,250,636$239,330$85,370$569,102
57$1,328,804$201,661$38,834$567,488
58$1,413,390$160,590$0$565,811
59$1,504,998$115,902$0$567,384
60$1,604,295$67,368$0$581,659
61$1,712,012$14,748$0$597,176
62$1,828,955$0$0$614,113
63$1,956,010$0$0$651,250
64$2,094,149$0$0$698,750
65$2,244,446$0$0$750,499
66$2,408,079$0$0$806,912
67$2,586,345$0$0$868,444
68$2,780,673$0$0$935,598
69$2,992,633$0$0$1,008,927
70$3,223,956$0$0$1,089,039
71$3,476,546$0$0$1,176,605
72$3,752,497$0$0$1,272,362
73$4,054,118$0$0$1,377,121
74$4,383,948$0$0$1,491,778
75$4,744,785$0$0$1,617,317
76$5,139,707$0$0$1,754,822
77$5,572,107$0$0$1,905,488
78$6,045,719$0$0$2,070,629
79$6,564,654$0$0$2,251,695
80$7,133,443$0$0$2,450,279
81$7,757,073$0$0$2,668,140
82$8,441,037$0$0$2,907,213
83$9,191,387$0$0$3,169,630
84$10,014,788$0$0$3,457,738
85$10,918,581$0$0$3,774,124
86$11,910,852$0$0$4,121,638
87$13,000,511$0$0$4,503,419
88$14,197,369$0$0$4,922,925
89$15,512,237$0$0$5,383,966
90$16,957,025$0$0$5,890,738
91$18,544,850$0$0$6,447,866
92$20,290,167$0$0$7,060,443
93$22,208,899$0$0$7,734,083
94$24,318,590$0$0$8,474,968
95$26,638,568$0$0$9,289,911
96$29,190,126$0$0$10,186,419
97$31,996,728$0$0$11,172,763
98$35,084,224$0$0$12,258,055
99$38,481,095$0$0$13,452,335
100$42,218,722$0$0$14,766,666