Can I retire at age 40 with 490,000?

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 $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%18.5%
1 years$40,464$40,103$39,752$39,408$39,073$37,732
2 years$20,032$19,658$19,297$18,946$18,606$17,269
3 years$13,222$12,847$12,486$12,139$11,805$10,513
4 years$9,817$9,444$9,087$8,746$8,419$7,183
5 years$7,775$7,404$7,052$6,717$6,400$5,222
6 years$6,415$6,046$5,699$5,372$5,064$3,946
7 years$5,443$5,077$4,736$4,417$4,119$3,060
8 years$4,714$4,352$4,016$3,705$3,417$2,417
9 years$4,148$3,789$3,459$3,156$2,877$1,935
10 years$3,695$3,340$3,016$2,720$2,452$1,565
11 years$3,325$2,974$2,655$2,368$2,109$1,276
12 years$3,017$2,669$2,356$2,077$1,827$1,047
13 years$2,756$2,412$2,105$1,833$1,593$863
14 years$2,533$2,192$1,892$1,627$1,397$715
15 years$2,340$2,003$1,708$1,451$1,230$594
16 years$2,171$1,838$1,548$1,300$1,087$494
17 years$2,022$1,692$1,409$1,168$964$413
18 years$1,890$1,564$1,286$1,052$857$345
19 years$1,772$1,449$1,177$951$764$289
20 years$1,665$1,347$1,081$861$682$242
21 years$1,569$1,254$994$782$610$203
22 years$1,482$1,171$916$711$547$171
23 years$1,403$1,095$846$647$491$144
24 years$1,330$1,026$782$590$442$121
25 years$1,263$963$725$539$397$102
26 years$1,202$905$672$493$358$86
27 years$1,145$852$624$451$323$72
28 years$1,092$803$580$413$291$61
29 years$1,043$757$540$379$263$51
30 years$997$715$503$348$238$43
31 years$955$676$469$319$215$36
32 years$915$640$437$294$194$31
33 years$878$606$408$270$176$26
34 years$842$574$382$248$159$22
35 years$809$544$357$229$144$18
36 years$778$517$334$211$131$16
37 years$749$491$312$194$118$13
38 years$721$466$292$179$107$11
39 years$695$444$274$165$97$9
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$3
46 years$544$316$175$94$49$3
47 years$527$302$165$87$45$2
48 years$510$288$155$80$41$2
49 years$494$275$146$74$37$2
50 years$478$263$137$69$34$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $490,000, adding $5,775 every year, while hoping to spend $38,694 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: 35/38/27 Blend
39$490,000$490,000$490,000$490,000
40$545,937$519,967$512,372$560,434
41$560,452$504,275$488,366$556,066
42$575,152$486,518$462,260$547,454
43$590,012$466,552$433,941$537,409
44$605,009$444,229$403,293$525,831
45$620,112$419,388$370,196$512,608
46$635,288$391,862$334,521$497,627
47$650,496$361,473$296,137$480,765
48$665,695$328,033$254,905$461,890
49$680,832$291,343$210,681$440,865
50$695,851$251,193$163,313$417,540
51$710,687$207,361$112,643$391,760
52$725,269$159,613$58,508$363,357
53$739,513$107,701$736$332,152
54$753,329$51,364$0$297,957
55$766,614$0$0$278,119
56$779,251$0$0$260,285
57$791,112$0$0$263,592
58$802,053$0$0$266,503
59$811,913$0$0$268,956
60$820,512$0$0$270,881
61$827,651$0$0$272,198
62$833,106$0$0$272,821
63$836,630$0$0$272,652
64$837,948$0$0$271,584
65$836,754$0$0$269,498
66$832,707$0$0$266,260
67$825,433$0$0$261,724
68$814,511$0$0$255,728
69$799,480$0$0$248,089
70$779,825$0$0$238,610
71$754,977$0$0$227,068
72$724,306$0$0$213,218
73$687,115$0$0$196,790
74$642,632$0$0$177,483
75$590,002$0$0$154,967
76$528,282$0$0$128,875
77$456,427$0$0$98,802
78$373,281$0$0$64,299
79$277,569$0$0$24,873
80$167,880$0$0$0
81$42,656$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