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%11.1%
1 years$41,620$41,249$40,887$40,534$40,190$40,003
2 years$20,604$20,220$19,848$19,488$19,138$18,950
3 years$13,599$13,214$12,843$12,486$12,142$11,958
4 years$10,098$9,714$9,347$8,995$8,660$8,481
5 years$7,998$7,616$7,253$6,909$6,583$6,411
6 years$6,598$6,219$5,862$5,525$5,209$5,043
7 years$5,598$5,223$4,871$4,543$4,236$4,076
8 years$4,849$4,477$4,131$3,811$3,514$3,361
9 years$4,267$3,898$3,558$3,246$2,960$2,812
10 years$3,801$3,436$3,102$2,798$2,522$2,381
11 years$3,420$3,059$2,731$2,435$2,169$2,034
12 years$3,103$2,745$2,424$2,136$1,879$1,751
13 years$2,835$2,481$2,165$1,886$1,639$1,516
14 years$2,605$2,255$1,946$1,674$1,437$1,320
15 years$2,407$2,060$1,757$1,493$1,265$1,153
16 years$2,233$1,890$1,593$1,337$1,118$1,012
17 years$2,080$1,741$1,449$1,201$991$891
18 years$1,944$1,608$1,323$1,082$881$786
19 years$1,822$1,491$1,211$978$786$695
20 years$1,713$1,385$1,112$886$702$616
21 years$1,614$1,290$1,022$804$628$547
22 years$1,525$1,204$942$731$563$486
23 years$1,443$1,126$870$666$505$433
24 years$1,368$1,055$805$607$454$386
25 years$1,299$990$745$554$409$344
26 years$1,236$931$691$507$368$308
27 years$1,178$876$642$464$332$275
28 years$1,123$826$597$425$299$246
29 years$1,073$779$555$390$270$220
30 years$1,026$735$517$358$244$197
31 years$982$695$482$329$221$177
32 years$941$658$450$302$200$158
33 years$903$623$420$278$181$142
34 years$866$590$392$256$164$127
35 years$832$560$367$235$148$114
36 years$800$532$343$217$134$103
37 years$770$505$321$200$122$92
38 years$742$480$301$184$110$83
39 years$715$456$282$170$100$74
40 years$689$434$264$156$91$67
41 years$665$413$248$144$82$60
42 years$642$394$232$133$75$54
43 years$620$375$218$123$68$49
44 years$599$357$205$114$62$44
45 years$579$341$192$105$56$39
46 years$560$325$181$97$51$35
47 years$542$310$170$89$46$32
48 years$524$296$159$83$42$29
49 years$508$283$150$76$38$26
50 years$492$270$141$71$35$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $504,000, adding $4,269 every year, while hoping to spend $38,718 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: 50/41/9 Blend
39$504,000$504,000$504,000$504,000
40$559,811$533,099$525,287$586,270
41$575,717$518,026$501,689$589,735
42$591,946$500,916$476,002$589,026
43$608,493$481,629$448,116$587,353
44$625,347$460,016$417,916$584,637
45$642,495$435,920$385,279$580,793
46$659,924$409,174$350,080$575,728
47$677,615$379,603$312,187$569,344
48$695,548$347,019$271,461$561,539
49$713,697$311,226$227,758$552,200
50$732,035$272,017$180,929$541,208
51$750,527$229,171$130,815$528,435
52$769,136$182,455$77,252$513,746
53$787,818$131,626$20,070$496,995
54$806,523$76,423$0$478,026
55$825,194$16,573$0$460,607
56$843,766$0$0$442,939
57$862,166$0$0$444,672
58$880,311$0$0$453,713
59$898,108$0$0$462,532
60$915,453$0$0$471,071
61$932,228$0$0$479,264
62$948,301$0$0$487,037
63$963,525$0$0$494,307
64$977,734$0$0$500,984
65$990,744$0$0$506,963
66$1,002,350$0$0$512,132
67$1,012,321$0$0$516,361
68$1,020,404$0$0$519,509
69$1,026,312$0$0$521,419
70$1,029,731$0$0$521,914
71$1,030,309$0$0$520,800
72$1,027,655$0$0$517,861
73$1,021,337$0$0$512,855
74$1,010,874$0$0$505,518
75$995,732$0$0$495,553
76$975,320$0$0$482,634
77$948,985$0$0$466,398
78$915,999$0$0$446,444
79$875,562$0$0$422,327
80$826,782$0$0$393,556
81$768,678$0$0$359,588
82$700,160$0$0$319,820
83$620,025$0$0$273,588
84$526,943$0$0$220,156
85$419,442$0$0$158,712
86$295,896$0$0$88,357
87$154,510$0$0$8,101
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