Can I retire at age 40 with 507,000?

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 $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%11.6%
1 years$41,868$41,495$41,131$40,776$40,429$40,157
2 years$20,727$20,341$19,966$19,604$19,252$18,978
3 years$13,680$13,293$12,920$12,560$12,214$11,946
4 years$10,158$9,772$9,402$9,049$8,711$8,452
5 years$8,045$7,661$7,296$6,950$6,622$6,372
6 years$6,637$6,256$5,897$5,558$5,240$4,999
7 years$5,632$5,254$4,900$4,570$4,261$4,030
8 years$4,878$4,503$4,156$3,834$3,535$3,313
9 years$4,292$3,921$3,579$3,265$2,977$2,764
10 years$3,824$3,456$3,121$2,815$2,537$2,333
11 years$3,441$3,077$2,747$2,450$2,182$1,987
12 years$3,122$2,762$2,438$2,149$1,891$1,705
13 years$2,852$2,496$2,178$1,897$1,649$1,472
14 years$2,621$2,268$1,957$1,684$1,445$1,277
15 years$2,421$2,072$1,767$1,502$1,272$1,112
16 years$2,246$1,901$1,602$1,345$1,125$973
17 years$2,092$1,751$1,458$1,208$997$853
18 years$1,955$1,618$1,331$1,089$887$750
19 years$1,833$1,500$1,218$984$790$661
20 years$1,723$1,393$1,118$891$706$584
21 years$1,624$1,298$1,028$809$632$516
22 years$1,534$1,212$948$735$566$457
23 years$1,451$1,133$875$670$508$406
24 years$1,376$1,062$809$611$457$360
25 years$1,307$996$750$558$411$320
26 years$1,243$936$695$510$370$285
27 years$1,185$881$646$467$334$254
28 years$1,130$830$600$428$301$226
29 years$1,079$783$559$392$272$202
30 years$1,032$740$520$360$246$180
31 years$988$699$485$331$222$160
32 years$947$662$453$304$201$143
33 years$908$627$423$279$182$128
34 years$872$594$395$257$165$114
35 years$837$563$369$237$149$102
36 years$805$535$345$218$135$91
37 years$775$508$323$201$122$82
38 years$746$483$303$185$111$73
39 years$719$459$284$171$101$65
40 years$693$437$266$157$91$58
41 years$669$416$249$145$83$52
42 years$645$396$234$134$75$47
43 years$623$377$219$124$68$42
44 years$602$360$206$114$62$38
45 years$582$343$193$105$56$34
46 years$563$327$182$97$51$30
47 years$545$312$171$90$46$27
48 years$528$298$160$83$42$24
49 years$511$285$151$77$38$22
50 years$495$272$142$71$35$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $507,000, adding $4,319 every year, while hoping to spend $48,547 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: 65/22/13 Blend
39$507,000$507,000$507,000$507,000
40$563,169$536,298$528,440$597,801
41$568,959$510,923$494,489$596,099
42$573,712$482,678$457,773$588,185
43$577,271$451,370$418,150$578,323
44$579,463$416,797$375,467$566,320
45$580,092$378,744$329,570$551,968
46$578,943$336,984$280,292$535,037
47$575,777$291,278$227,464$515,278
48$570,329$241,373$170,906$492,419
49$562,303$187,001$110,432$466,161
50$551,373$127,879$45,846$436,181
51$537,177$63,709$0$402,121
52$519,315$0$0$366,796
53$497,342$0$0$334,985
54$470,767$0$0$315,279
55$439,046$0$0$291,867
56$401,578$0$0$264,316
57$357,698$0$0$232,149
58$306,669$0$0$194,839
59$247,678$0$0$151,802
60$179,827$0$0$102,394
61$102,122$0$0$45,901
62$13,466$0$0$0
63$0$0$0$0
64$0$0$0$0
65$0$0$0$0
66$0$0$0$0
67$0$0$0$0
68$0$0$0$0
69$0$0$0$0
70$0$0$0$0
71$0$0$0$0
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
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