Can I retire at age 40 with 504,000?

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 $504,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.8%
1 years$41,620$41,249$40,887$40,534$40,190$39,886
2 years$20,604$20,220$19,848$19,488$19,138$18,832
3 years$13,599$13,214$12,843$12,486$12,142$11,843
4 years$10,098$9,714$9,347$8,995$8,660$8,370
5 years$7,998$7,616$7,253$6,909$6,583$6,303
6 years$6,598$6,219$5,862$5,525$5,209$4,940
7 years$5,598$5,223$4,871$4,543$4,236$3,978
8 years$4,849$4,477$4,131$3,811$3,514$3,267
9 years$4,267$3,898$3,558$3,246$2,960$2,722
10 years$3,801$3,436$3,102$2,798$2,522$2,295
11 years$3,420$3,059$2,731$2,435$2,169$1,952
12 years$3,103$2,745$2,424$2,136$1,879$1,673
13 years$2,835$2,481$2,165$1,886$1,639$1,442
14 years$2,605$2,255$1,946$1,674$1,437$1,250
15 years$2,407$2,060$1,757$1,493$1,265$1,087
16 years$2,233$1,890$1,593$1,337$1,118$949
17 years$2,080$1,741$1,449$1,201$991$831
18 years$1,944$1,608$1,323$1,082$881$730
19 years$1,822$1,491$1,211$978$786$643
20 years$1,713$1,385$1,112$886$702$567
21 years$1,614$1,290$1,022$804$628$500
22 years$1,525$1,204$942$731$563$443
23 years$1,443$1,126$870$666$505$392
24 years$1,368$1,055$805$607$454$348
25 years$1,299$990$745$554$409$308
26 years$1,236$931$691$507$368$274
27 years$1,178$876$642$464$332$244
28 years$1,123$826$597$425$299$217
29 years$1,073$779$555$390$270$193
30 years$1,026$735$517$358$244$172
31 years$982$695$482$329$221$153
32 years$941$658$450$302$200$136
33 years$903$623$420$278$181$122
34 years$866$590$392$256$164$109
35 years$832$560$367$235$148$97
36 years$800$532$343$217$134$86
37 years$770$505$321$200$122$77
38 years$742$480$301$184$110$69
39 years$715$456$282$170$100$62
40 years$689$434$264$156$91$55
41 years$665$413$248$144$82$49
42 years$642$394$232$133$75$44
43 years$620$375$218$123$68$39
44 years$599$357$205$114$62$35
45 years$579$341$192$105$56$31
46 years$560$325$181$97$51$28
47 years$542$310$170$89$46$25
48 years$524$296$159$83$42$22
49 years$508$283$150$76$38$20
50 years$492$270$141$71$35$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $504,000, adding $6,822 every year, while hoping to spend $30,592 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: 64/16/20 Blend
39$504,000$504,000$504,000$504,000
40$562,445$535,733$527,921$595,158
41$587,265$529,434$513,057$611,693
42$613,591$521,801$496,669$625,674
43$641,544$512,737$478,675$640,233
44$671,258$502,138$458,987$655,428
45$702,878$489,894$437,514$671,325
46$736,562$475,889$414,161$687,997
47$772,484$460,001$388,829$705,525
48$810,836$442,099$361,413$724,000
49$851,825$422,046$331,805$743,525
50$895,682$399,696$299,890$764,213
51$942,656$374,896$265,551$786,191
52$993,024$347,483$228,664$809,601
53$1,047,087$317,284$189,098$834,598
54$1,105,176$284,118$146,720$861,360
55$1,167,657$247,792$101,388$890,082
56$1,234,927$208,103$52,954$920,980
57$1,307,427$164,837$1,265$954,297
58$1,385,637$117,767$0$990,301
59$1,470,088$66,653$0$1,040,793
60$1,561,360$11,243$0$1,095,638
61$1,660,095$0$0$1,154,973
62$1,766,993$0$0$1,227,825
63$1,882,829$0$0$1,308,942
64$2,008,451$0$0$1,396,944
65$2,144,795$0$0$1,492,487
66$2,292,887$0$0$1,596,298
67$2,453,859$0$0$1,709,171
68$2,628,953$0$0$1,831,985
69$2,819,537$0$0$1,965,702
70$3,027,118$0$0$2,111,385
71$3,253,352$0$0$2,270,200
72$3,500,062$0$0$2,443,434
73$3,769,255$0$0$2,632,500
74$4,063,139$0$0$2,838,955
75$4,384,146$0$0$3,064,514
76$4,734,953$0$0$3,311,064
77$5,118,506$0$0$3,580,682
78$5,538,051$0$0$3,875,655
79$5,997,158$0$0$4,198,502
80$6,499,763$0$0$4,551,997
81$7,050,197$0$0$4,939,194
82$7,653,229$0$0$5,363,456
83$8,314,115$0$0$5,828,488
84$9,038,638$0$0$6,338,368
85$9,833,172$0$0$6,897,591
86$10,704,736$0$0$7,511,104
87$11,661,059$0$0$8,184,360
88$12,710,657$0$0$8,923,362
89$13,862,910$0$0$9,734,724
90$15,128,149$0$0$10,625,733
91$16,517,755$0$0$11,604,413
92$18,044,268$0$0$12,679,607
93$19,721,498$0$0$13,861,055
94$21,564,662$0$0$15,159,486
95$23,590,524$0$0$16,586,722
96$25,817,550$0$0$18,155,786
97$28,266,089$0$0$19,881,028
98$30,958,555$0$0$21,778,254
99$33,919,647$0$0$23,864,883
100$37,176,575$0$0$26,160,103