Can I retire at age 40 with 507,000?

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 $507,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.5%
1 years$41,868$41,495$41,131$40,776$40,429$39,198
2 years$20,727$20,341$19,966$19,604$19,252$18,022
3 years$13,680$13,293$12,920$12,560$12,214$11,024
4 years$10,158$9,772$9,402$9,049$8,711$7,570
5 years$8,045$7,661$7,296$6,950$6,622$5,533
6 years$6,637$6,256$5,897$5,558$5,240$4,204
7 years$5,632$5,254$4,900$4,570$4,261$3,279
8 years$4,878$4,503$4,156$3,834$3,535$2,605
9 years$4,292$3,921$3,579$3,265$2,977$2,098
10 years$3,824$3,456$3,121$2,815$2,537$1,708
11 years$3,441$3,077$2,747$2,450$2,182$1,402
12 years$3,122$2,762$2,438$2,149$1,891$1,158
13 years$2,852$2,496$2,178$1,897$1,649$961
14 years$2,621$2,268$1,957$1,684$1,445$801
15 years$2,421$2,072$1,767$1,502$1,272$670
16 years$2,246$1,901$1,602$1,345$1,125$562
17 years$2,092$1,751$1,458$1,208$997$473
18 years$1,955$1,618$1,331$1,089$887$398
19 years$1,833$1,500$1,218$984$790$336
20 years$1,723$1,393$1,118$891$706$284
21 years$1,624$1,298$1,028$809$632$240
22 years$1,534$1,212$948$735$566$203
23 years$1,451$1,133$875$670$508$172
24 years$1,376$1,062$809$611$457$146
25 years$1,307$996$750$558$411$124
26 years$1,243$936$695$510$370$105
27 years$1,185$881$646$467$334$89
28 years$1,130$830$600$428$301$76
29 years$1,079$783$559$392$272$64
30 years$1,032$740$520$360$246$55
31 years$988$699$485$331$222$47
32 years$947$662$453$304$201$40
33 years$908$627$423$279$182$34
34 years$872$594$395$257$165$29
35 years$837$563$369$237$149$24
36 years$805$535$345$218$135$21
37 years$775$508$323$201$122$18
38 years$746$483$303$185$111$15
39 years$719$459$284$171$101$13
40 years$693$437$266$157$91$11
41 years$669$416$249$145$83$9
42 years$645$396$234$134$75$8
43 years$623$377$219$124$68$7
44 years$602$360$206$114$62$6
45 years$582$343$193$105$56$5
46 years$563$327$182$97$51$4
47 years$545$312$171$90$46$4
48 years$528$298$160$83$42$3
49 years$511$285$151$77$38$3
50 years$495$272$142$71$35$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $507,000, adding $6,553 every year, while hoping to spend $40,003 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: 59/12/29 Blend
39$507,000$507,000$507,000$507,000
40$565,473$538,602$530,744$594,018
41$580,589$522,431$505,961$598,120
42$595,905$504,127$479,007$597,798
43$611,401$483,542$449,767$596,623
44$627,051$460,523$418,121$594,523
45$642,825$434,904$383,944$591,423
46$658,691$406,512$347,104$587,238
47$674,610$375,163$307,463$581,880
48$690,537$340,663$264,881$575,252
49$706,423$302,806$219,205$567,252
50$722,211$261,377$170,282$557,769
51$737,837$216,145$117,947$546,684
52$753,229$166,868$62,030$533,868
53$768,305$113,291$2,355$519,183
54$782,973$55,144$0$502,480
55$797,131$0$0$502,575
56$810,663$0$0$503,368
57$823,441$0$0$510,929
58$835,320$0$0$517,882
59$846,139$0$0$524,122
60$855,719$0$0$529,531
61$863,858$0$0$533,977
62$870,335$0$0$537,316
63$874,901$0$0$539,386
64$877,281$0$0$540,005
65$877,166$0$0$538,973
66$874,218$0$0$536,069
67$868,058$0$0$531,046
68$858,267$0$0$523,629
69$844,379$0$0$513,516
70$825,880$0$0$500,371
71$802,199$0$0$483,820
72$772,702$0$0$463,453
73$736,690$0$0$438,812
74$693,387$0$0$409,392
75$641,937$0$0$374,635
76$581,390$0$0$333,923
77$510,698$0$0$286,571
78$428,701$0$0$231,826
79$334,115$0$0$168,851
80$225,526$0$0$96,724
81$101,366$0$0$14,425
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
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