Can I retire at age 40 with 493,000?

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 $493,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$40,711$40,349$39,995$39,650$39,313$38,130
2 years$20,154$19,779$19,415$19,062$18,720$17,539
3 years$13,303$12,926$12,563$12,213$11,877$10,734
4 years$9,878$9,502$9,143$8,799$8,471$7,375
5 years$7,823$7,449$7,095$6,759$6,439$5,393
6 years$6,454$6,083$5,734$5,405$5,095$4,100
7 years$5,476$5,109$4,765$4,444$4,144$3,199
8 years$4,743$4,379$4,041$3,728$3,438$2,543
9 years$4,174$3,813$3,480$3,175$2,895$2,050
10 years$3,718$3,361$3,034$2,737$2,467$1,670
11 years$3,346$2,992$2,671$2,382$2,121$1,371
12 years$3,035$2,685$2,371$2,089$1,838$1,133
13 years$2,773$2,427$2,118$1,845$1,603$941
14 years$2,549$2,206$1,903$1,637$1,405$785
15 years$2,354$2,015$1,718$1,460$1,237$657
16 years$2,184$1,849$1,558$1,308$1,094$552
17 years$2,034$1,703$1,418$1,175$970$464
18 years$1,901$1,573$1,294$1,059$862$391
19 years$1,782$1,458$1,185$957$768$331
20 years$1,676$1,355$1,087$866$686$279
21 years$1,579$1,262$1,000$786$614$237
22 years$1,491$1,178$922$715$551$200
23 years$1,411$1,102$851$651$494$170
24 years$1,338$1,032$787$594$444$144
25 years$1,271$969$729$542$400$122
26 years$1,209$911$676$496$360$104
27 years$1,152$857$628$454$325$88
28 years$1,099$808$584$416$293$75
29 years$1,049$762$543$381$264$64
30 years$1,004$719$506$350$239$54
31 years$961$680$472$321$216$46
32 years$921$644$440$295$195$39
33 years$883$609$411$272$177$33
34 years$848$578$384$250$160$29
35 years$814$548$359$230$145$24
36 years$783$520$336$212$131$21
37 years$753$494$314$195$119$18
38 years$726$469$294$180$108$15
39 years$699$446$276$166$98$13
40 years$674$425$258$153$89$11
41 years$650$404$242$141$81$9
42 years$628$385$227$130$73$8
43 years$606$367$213$120$66$7
44 years$586$350$200$111$60$6
45 years$566$333$188$103$55$5
46 years$548$318$177$95$50$4
47 years$530$303$166$88$45$4
48 years$513$290$156$81$41$3
49 years$497$277$147$75$37$3
50 years$481$264$138$69$34$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $493,000, adding $4,690 every year, while hoping to spend $27,493 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: 41/32/27 Blend
39$493,000$493,000$493,000$493,000
40$548,124$521,995$514,353$566,082
41$574,780$518,320$502,332$575,807
42$603,234$513,544$488,986$583,397
43$633,639$507,583$474,243$591,083
44$666,166$500,350$458,025$598,891
45$700,999$491,752$440,253$606,851
46$738,342$481,688$420,843$614,998
47$778,417$470,056$399,706$623,373
48$821,471$456,744$376,751$632,026
49$867,771$441,634$351,882$641,010
50$917,613$424,603$324,999$650,389
51$971,320$405,520$295,998$660,238
52$1,029,249$384,245$264,768$670,639
53$1,091,791$360,631$231,196$681,688
54$1,159,376$334,524$195,163$693,494
55$1,232,474$305,758$156,543$706,181
56$1,311,607$274,160$115,208$719,888
57$1,397,344$239,547$71,020$734,774
58$1,490,312$201,724$23,838$751,017
59$1,591,202$160,486$0$768,820
60$1,700,772$115,618$0$796,048
61$1,819,858$66,890$0$833,143
62$1,949,376$14,061$0$873,565
63$2,090,339$0$0$917,683
64$2,243,856$0$0$981,094
65$2,411,152$0$0$1,055,651
66$2,593,572$0$0$1,137,009
67$2,792,599$0$0$1,225,836
68$3,009,862$0$0$1,322,869
69$3,247,157$0$0$1,428,917
70$3,506,461$0$0$1,544,871
71$3,789,948$0$0$1,671,715
72$4,100,015$0$0$1,810,529
73$4,439,299$0$0$1,962,503
74$4,810,703$0$0$2,128,948
75$5,217,427$0$0$2,311,308
76$5,662,991$0$0$2,511,173
77$6,151,275$0$0$2,730,294
78$6,686,549$0$0$2,970,599
79$7,273,518$0$0$3,234,212
80$7,917,364$0$0$3,523,473
81$8,623,794$0$0$3,840,959
82$9,399,093$0$0$4,189,508
83$10,250,187$0$0$4,572,248
84$11,184,702$0$0$4,992,622
85$12,211,042$0$0$5,454,426
86$13,338,461$0$0$5,961,839
87$14,577,156$0$0$6,519,467
88$15,938,361$0$0$7,132,383
89$17,434,450$0$0$7,806,176
90$19,079,058$0$0$8,547,005
91$20,887,203$0$0$9,361,652
92$22,875,435$0$0$10,257,593
93$25,061,985$0$0$11,243,064
94$27,466,941$0$0$12,327,137
95$30,112,435$0$0$13,519,810
96$33,022,850$0$0$14,832,098
97$36,225,055$0$0$16,276,137
98$39,748,651$0$0$17,865,300
99$43,626,257$0$0$19,614,321
100$47,893,811$0$0$21,539,435