Can I retire at age 40 with 500,000?

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 $500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.8%
1 years$41,290$40,922$40,563$40,213$39,871$39,082
2 years$20,440$20,060$19,691$19,333$18,986$18,194
3 years$13,492$13,109$12,741$12,387$12,046$11,276
4 years$10,018$9,637$9,272$8,924$8,591$7,850
5 years$7,934$7,555$7,196$6,855$6,531$5,819
6 years$6,545$6,169$5,815$5,482$5,168$4,487
7 years$5,554$5,181$4,832$4,507$4,203$3,553
8 years$4,811$4,441$4,098$3,781$3,486$2,868
9 years$4,233$3,867$3,530$3,220$2,936$2,348
10 years$3,771$3,408$3,077$2,776$2,502$1,944
11 years$3,393$3,034$2,709$2,416$2,152$1,623
12 years$3,079$2,723$2,404$2,119$1,864$1,364
13 years$2,813$2,461$2,148$1,871$1,626$1,153
14 years$2,585$2,237$1,930$1,661$1,425$979
15 years$2,388$2,044$1,743$1,481$1,255$835
16 years$2,215$1,875$1,580$1,326$1,109$714
17 years$2,063$1,727$1,438$1,191$983$612
18 years$1,928$1,596$1,312$1,074$874$526
19 years$1,808$1,479$1,202$970$779$453
20 years$1,699$1,374$1,103$879$696$391
21 years$1,601$1,280$1,014$798$623$337
22 years$1,512$1,195$935$725$558$292
23 years$1,431$1,118$863$660$501$252
24 years$1,357$1,047$798$602$451$219
25 years$1,289$983$739$550$405$190
26 years$1,226$923$686$503$365$164
27 years$1,168$869$637$460$329$143
28 years$1,114$819$592$422$297$124
29 years$1,064$773$551$387$268$108
30 years$1,018$730$513$355$242$94
31 years$974$690$478$326$219$81
32 years$934$653$446$300$198$71
33 years$895$618$417$276$179$61
34 years$860$586$389$254$162$53
35 years$826$556$364$233$147$47
36 years$794$527$341$215$133$40
37 years$764$501$319$198$121$35
38 years$736$476$298$183$110$31
39 years$709$453$280$168$99$27
40 years$684$431$262$155$90$23
41 years$659$410$246$143$82$20
42 years$637$390$231$132$74$18
43 years$615$372$216$122$67$15
44 years$594$355$203$113$61$13
45 years$574$338$191$104$55$12
46 years$555$323$179$96$50$10
47 years$538$308$168$89$46$9
48 years$520$294$158$82$42$8
49 years$504$281$149$76$38$7
50 years$488$268$140$70$34$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $500,000, adding $3,652 every year, while hoping to spend $29,681 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: 33/43/24 Blend
39$500,000$500,000$500,000$500,000
40$554,767$528,267$520,517$568,905
41$579,773$522,572$506,374$574,140
42$606,335$515,603$490,762$576,846
43$634,580$507,266$473,602$579,165
44$664,647$497,462$454,808$581,082
45$696,689$486,086$434,292$582,583
46$730,874$473,027$411,963$583,656
47$767,384$458,166$387,725$584,291
48$806,420$441,379$361,476$584,479
49$848,201$422,533$333,112$584,214
50$892,969$401,488$302,523$583,495
51$940,988$378,098$269,594$582,322
52$992,549$352,205$234,205$580,700
53$1,047,970$323,643$196,232$578,640
54$1,107,600$292,239$155,543$576,158
55$1,171,824$257,808$112,003$573,276
56$1,241,063$220,153$65,468$570,025
57$1,315,781$179,070$15,790$566,442
58$1,396,485$134,339$0$562,577
59$1,483,737$85,732$0$568,022
60$1,578,149$33,004$0$578,249
61$1,680,398$0$0$589,343
62$1,791,227$0$0$612,853
63$1,911,452$0$0$655,360
64$2,041,972$0$0$701,573
65$2,183,775$0$0$751,849
66$2,337,948$0$0$806,583
67$2,505,687$0$0$866,208
68$2,688,306$0$0$931,202
69$2,887,255$0$0$1,002,089
70$3,104,126$0$0$1,079,448
71$3,340,673$0$0$1,163,914
72$3,598,824$0$0$1,256,189
73$3,880,706$0$0$1,357,042
74$4,188,656$0$0$1,467,323
75$4,525,248$0$0$1,587,967
76$4,893,317$0$0$1,720,002
77$5,295,984$0$0$1,864,561
78$5,736,684$0$0$2,022,893
79$6,219,202$0$0$2,196,371
80$6,747,704$0$0$2,386,510
81$7,326,779$0$0$2,594,974
82$7,961,481$0$0$2,823,601
83$8,657,373$0$0$3,074,412
84$9,420,588$0$0$3,349,633
85$10,257,875$0$0$3,651,719
86$11,176,672$0$0$3,983,371
87$12,185,169$0$0$4,347,565
88$13,292,390$0$0$4,747,581
89$14,508,275$0$0$5,187,030
90$15,843,771$0$0$5,669,892
91$17,310,941$0$0$6,200,549
92$18,923,073$0$0$6,783,833
93$20,694,803$0$0$7,425,062
94$22,642,261$0$0$8,130,098
95$24,783,211$0$0$8,905,401
96$27,137,228$0$0$9,758,084
97$29,725,879$0$0$10,695,987
98$32,572,922$0$0$11,727,748
99$35,704,536$0$0$12,862,883
100$39,149,564$0$0$14,111,877