Can I retire at age 40 with 506,000?

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 $506,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.7%
1 years$41,785$41,413$41,050$40,695$40,349$39,567
2 years$20,686$20,300$19,927$19,565$19,214$18,429
3 years$13,653$13,267$12,894$12,535$12,190$11,427
4 years$10,138$9,752$9,384$9,031$8,694$7,959
5 years$8,029$7,646$7,282$6,937$6,609$5,903
6 years$6,624$6,243$5,885$5,547$5,230$4,554
7 years$5,621$5,243$4,890$4,561$4,253$3,609
8 years$4,868$4,494$4,147$3,826$3,528$2,914
9 years$4,284$3,913$3,572$3,259$2,971$2,388
10 years$3,816$3,449$3,114$2,809$2,532$1,978
11 years$3,434$3,071$2,742$2,445$2,177$1,652
12 years$3,115$2,756$2,433$2,144$1,887$1,390
13 years$2,846$2,491$2,174$1,893$1,645$1,176
14 years$2,616$2,264$1,953$1,681$1,442$999
15 years$2,416$2,068$1,764$1,499$1,270$852
16 years$2,242$1,898$1,599$1,342$1,122$729
17 years$2,088$1,748$1,455$1,206$995$626
18 years$1,951$1,615$1,328$1,087$885$538
19 years$1,829$1,497$1,216$982$789$464
20 years$1,720$1,391$1,116$889$704$400
21 years$1,621$1,295$1,026$807$630$346
22 years$1,531$1,209$946$734$565$299
23 years$1,449$1,131$873$668$507$259
24 years$1,374$1,060$808$610$456$225
25 years$1,305$994$748$557$410$195
26 years$1,241$935$694$509$370$169
27 years$1,182$880$644$466$333$147
28 years$1,128$829$599$427$301$128
29 years$1,077$782$557$391$271$111
30 years$1,030$738$519$359$245$97
31 years$986$698$484$330$222$84
32 years$945$660$452$303$201$73
33 years$906$625$422$279$182$64
34 years$870$593$394$257$164$55
35 years$836$562$368$236$149$48
36 years$804$534$345$218$135$42
37 years$773$507$323$200$122$37
38 years$745$482$302$185$111$32
39 years$717$458$283$170$101$28
40 years$692$436$265$157$91$24
41 years$667$415$249$145$83$21
42 years$644$395$233$134$75$18
43 years$622$376$219$123$68$16
44 years$601$359$205$114$62$14
45 years$581$342$193$105$56$12
46 years$562$326$181$97$51$11
47 years$544$312$170$90$46$9
48 years$527$297$160$83$42$8
49 years$510$284$150$77$38$7
50 years$494$271$141$71$35$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $506,000, adding $4,893 every year, while hoping to spend $28,138 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: 79/10/11 Blend
39$506,000$506,000$506,000$506,000
40$562,659$535,841$527,998$605,625
41$590,112$532,159$515,747$630,865
42$619,421$527,353$502,143$654,415
43$650,748$521,339$487,111$679,434
44$684,266$514,026$470,571$706,057
45$720,169$505,321$452,442$734,431
46$758,665$495,121$432,639$764,719
47$799,988$483,320$411,070$797,101
48$844,389$469,805$387,643$831,776
49$892,147$454,456$362,260$868,962
50$943,568$437,146$334,818$908,900
51$998,987$417,742$305,209$951,857
52$1,058,773$396,100$273,323$998,125
53$1,123,330$372,072$239,042$1,048,028
54$1,193,104$345,498$202,244$1,101,923
55$1,268,584$316,210$162,803$1,160,203
56$1,350,307$284,032$120,584$1,223,304
57$1,438,864$248,775$75,449$1,291,704
58$1,534,904$210,242$27,253$1,365,932
59$1,639,143$168,222$0$1,446,571
60$1,752,366$122,496$0$1,537,102
61$1,875,438$72,829$0$1,638,994
62$2,009,310$18,974$0$1,749,848
63$2,155,028$0$0$1,870,547
64$2,313,743$0$0$2,006,391
65$2,486,723$0$0$2,156,735
66$2,675,361$0$0$2,320,703
67$2,881,193$0$0$2,499,631
68$3,105,908$0$0$2,694,989
69$3,351,364$0$0$2,908,397
70$3,619,610$0$0$3,141,635
71$3,912,898$0$0$3,396,666
72$4,233,711$0$0$3,675,650
73$4,584,780$0$0$3,980,965
74$4,969,114$0$0$4,315,229
75$5,390,025$0$0$4,681,326
76$5,851,163$0$0$5,082,433
77$6,356,544$0$0$5,522,046
78$6,910,594$0$0$6,004,018
79$7,518,186$0$0$6,532,591
80$8,184,687$0$0$7,112,437
81$8,916,011$0$0$7,748,704
82$9,718,669$0$0$8,447,060
83$10,599,835$0$0$9,213,750
84$11,567,410$0$0$10,055,653
85$12,630,099$0$0$10,980,345
86$13,797,491$0$0$11,996,176
87$15,080,150$0$0$13,112,340
88$16,489,712$0$0$14,338,968
89$18,038,998$0$0$15,687,221
90$19,742,132$0$0$17,169,395
91$21,614,676$0$0$18,799,036
92$23,673,772$0$0$20,591,069
93$25,938,310$0$0$22,561,937
94$28,429,100$0$0$24,729,757
95$31,169,071$0$0$27,114,489
96$34,183,485$0$0$29,738,126
97$37,500,177$0$0$32,624,900
98$41,149,816$0$0$35,801,509
99$45,166,193$0$0$39,297,372
100$49,586,543$0$0$43,144,903