Can I retire at age 40 with 498,000?

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 $498,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.3%
1 years$41,124$40,758$40,401$40,052$39,711$39,329
2 years$20,359$19,979$19,612$19,256$18,910$18,525
3 years$13,438$13,057$12,690$12,337$11,997$11,622
4 years$9,978$9,598$9,235$8,888$8,557$8,193
5 years$7,902$7,525$7,167$6,827$6,505$6,154
6 years$6,519$6,145$5,792$5,460$5,147$4,810
7 years$5,532$5,160$4,813$4,489$4,186$3,862
8 years$4,791$4,423$4,082$3,765$3,473$3,163
9 years$4,216$3,851$3,516$3,207$2,924$2,628
10 years$3,756$3,395$3,065$2,765$2,492$2,209
11 years$3,380$3,022$2,698$2,406$2,143$1,873
12 years$3,066$2,713$2,395$2,111$1,857$1,600
13 years$2,801$2,451$2,140$1,863$1,619$1,375
14 years$2,574$2,228$1,922$1,654$1,420$1,188
15 years$2,378$2,036$1,736$1,475$1,250$1,030
16 years$2,206$1,868$1,574$1,321$1,105$896
17 years$2,055$1,720$1,432$1,187$979$782
18 years$1,921$1,589$1,307$1,069$871$684
19 years$1,800$1,473$1,197$966$776$600
20 years$1,693$1,369$1,098$875$693$527
21 years$1,595$1,275$1,010$794$620$464
22 years$1,506$1,190$931$722$556$409
23 years$1,426$1,113$860$658$499$361
24 years$1,352$1,043$795$600$449$319
25 years$1,284$979$736$548$404$282
26 years$1,221$920$683$501$364$249
27 years$1,164$866$634$459$328$221
28 years$1,110$816$590$420$296$196
29 years$1,060$770$549$385$267$173
30 years$1,014$727$511$354$241$154
31 years$970$687$476$325$218$136
32 years$930$650$445$298$197$121
33 years$892$616$415$274$179$108
34 years$856$583$388$252$162$96
35 years$823$553$363$232$147$85
36 years$791$525$339$214$133$75
37 years$761$499$317$197$120$67
38 years$733$474$297$182$109$60
39 years$706$451$279$168$99$53
40 years$681$429$261$155$90$47
41 years$657$408$245$143$81$42
42 years$634$389$230$132$74$37
43 years$612$370$215$122$67$33
44 years$592$353$202$112$61$30
45 years$572$337$190$104$55$26
46 years$553$321$178$96$50$23
47 years$535$307$168$88$46$21
48 years$518$293$157$82$41$19
49 years$502$279$148$76$38$17
50 years$486$267$139$70$34$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $498,000, adding $6,672 every year, while hoping to spend $28,992 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: 38/48/14 Blend
39$498,000$498,000$498,000$498,000
40$555,678$529,284$521,565$574,205
41$581,510$524,372$508,190$583,141
42$609,005$518,247$493,396$589,495
43$638,302$510,820$477,103$595,734
44$669,554$501,995$459,231$601,860
45$702,927$491,671$439,694$607,882
46$738,604$479,742$418,402$613,808
47$776,785$466,093$395,262$619,652
48$817,691$450,604$370,177$625,432
49$861,561$433,150$343,044$631,170
50$908,661$413,595$313,756$636,893
51$959,281$391,797$282,203$642,635
52$1,013,739$367,607$248,268$648,438
53$1,072,385$340,864$211,830$654,350
54$1,135,602$311,401$172,761$660,430
55$1,203,814$279,040$130,928$666,744
56$1,277,484$243,593$86,195$673,374
57$1,357,120$204,862$38,416$680,411
58$1,443,283$162,638$0$687,963
59$1,536,589$116,698$0$698,032
60$1,637,714$66,808$0$715,127
61$1,747,402$12,723$0$733,690
62$1,866,471$0$0$753,934
63$1,995,821$0$0$800,297
64$2,136,443$0$0$858,067
65$2,289,426$0$0$920,977
66$2,455,967$0$0$989,529
67$2,637,385$0$0$1,064,273
68$2,835,132$0$0$1,145,817
69$3,050,804$0$0$1,234,827
70$3,286,158$0$0$1,332,038
71$3,543,131$0$0$1,438,259
72$3,823,851$0$0$1,554,382
73$4,130,663$0$0$1,681,385
74$4,466,148$0$0$1,820,349
75$4,833,149$0$0$1,972,463
76$5,234,795$0$0$2,139,035
77$5,674,531$0$0$2,321,506
78$6,156,153$0$0$2,521,466
79$6,683,839$0$0$2,740,660
80$7,262,192$0$0$2,981,016
81$7,896,279$0$0$3,244,653
82$8,591,684$0$0$3,533,908
83$9,354,554$0$0$3,851,353
84$10,191,662$0$0$4,199,823
85$11,110,469$0$0$4,582,439
86$12,119,190$0$0$5,002,640
87$13,226,877$0$0$5,464,215
88$14,443,502$0$0$5,971,337
89$15,780,048$0$0$6,528,603
90$17,248,617$0$0$7,141,078
91$18,862,537$0$0$7,814,342
92$20,636,497$0$0$8,554,542
93$22,586,675$0$0$9,368,452
94$24,730,896$0$0$10,263,533
95$27,088,800$0$0$11,248,006
96$29,682,023$0$0$12,330,930
97$32,534,406$0$0$13,522,284
98$35,672,213$0$0$14,833,065
99$39,124,385$0$0$16,275,388
100$42,922,807$0$0$17,862,602