Can I retire at age 40 with 508,000?

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 $508,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.2%
1 years$41,950$41,576$41,212$40,856$40,509$39,481
2 years$20,767$20,381$20,006$19,642$19,290$18,261
3 years$13,707$13,319$12,945$12,585$12,238$11,241
4 years$10,178$9,791$9,421$9,067$8,728$7,770
5 years$8,061$7,676$7,311$6,964$6,635$5,718
6 years$6,650$6,268$5,908$5,569$5,250$4,376
7 years$5,643$5,264$4,910$4,579$4,270$3,438
8 years$4,888$4,512$4,164$3,841$3,542$2,752
9 years$4,301$3,929$3,586$3,272$2,983$2,234
10 years$3,831$3,463$3,127$2,820$2,542$1,834
11 years$3,447$3,083$2,753$2,454$2,186$1,517
12 years$3,128$2,767$2,443$2,153$1,894$1,264
13 years$2,858$2,501$2,183$1,901$1,652$1,059
14 years$2,626$2,273$1,961$1,687$1,448$890
15 years$2,426$2,076$1,771$1,505$1,275$752
16 years$2,251$1,905$1,605$1,347$1,127$637
17 years$2,096$1,754$1,461$1,211$999$540
18 years$1,959$1,621$1,333$1,091$888$460
19 years$1,837$1,503$1,221$986$792$392
20 years$1,727$1,396$1,120$893$707$334
21 years$1,627$1,301$1,030$810$633$285
22 years$1,537$1,214$950$737$567$244
23 years$1,454$1,135$877$671$509$209
24 years$1,379$1,064$811$612$458$179
25 years$1,310$998$751$559$412$153
26 years$1,246$938$697$511$371$132
27 years$1,187$883$647$468$335$113
28 years$1,132$832$601$429$302$97
29 years$1,081$785$560$393$273$83
30 years$1,034$741$521$361$246$72
31 years$990$701$486$331$223$61
32 years$949$663$453$304$201$53
33 years$910$628$423$280$182$45
34 years$873$595$396$258$165$39
35 years$839$564$370$237$149$34
36 years$807$536$346$218$135$29
37 years$776$509$324$201$123$25
38 years$748$484$303$185$111$21
39 years$720$460$284$171$101$18
40 years$695$438$266$158$92$16
41 years$670$416$250$146$83$14
42 years$647$397$234$134$75$12
43 years$625$378$220$124$68$10
44 years$604$360$206$114$62$9
45 years$584$344$194$106$56$7
46 years$564$328$182$98$51$6
47 years$546$313$171$90$46$6
48 years$529$299$161$83$42$5
49 years$512$285$151$77$38$4
50 years$496$272$142$71$35$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $508,000, adding $3,806 every year, while hoping to spend $36,621 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: 68/20/12 Blend
39$508,000$508,000$508,000$508,000
40$563,742$536,818$528,944$600,343
41$582,279$524,158$507,699$612,511
42$601,480$509,649$484,515$621,082
43$621,373$493,164$459,288$629,507
44$641,989$474,566$431,911$637,767
45$663,361$453,708$402,269$645,843
46$685,523$430,440$370,245$653,713
47$708,513$404,598$335,714$661,355
48$732,370$376,011$298,549$668,748
49$757,134$344,498$258,613$675,869
50$782,852$309,869$215,767$682,692
51$809,570$271,920$169,862$689,194
52$837,340$230,438$120,746$695,349
53$866,216$185,196$68,259$701,130
54$896,257$135,958$12,232$706,510
55$927,525$82,469$0$711,463
56$960,087$24,465$0$722,050
57$994,016$0$0$734,220
58$1,029,391$0$0$754,838
59$1,066,294$0$0$781,970
60$1,104,816$0$0$810,300
61$1,145,054$0$0$839,898
62$1,187,115$0$0$870,845
63$1,231,112$0$0$903,225
64$1,277,168$0$0$937,129
65$1,325,417$0$0$972,657
66$1,376,004$0$0$1,009,917
67$1,429,086$0$0$1,049,026
68$1,484,833$0$0$1,090,112
69$1,543,431$0$0$1,133,312
70$1,605,080$0$0$1,178,777
71$1,670,001$0$0$1,226,669
72$1,738,432$0$0$1,277,168
73$1,810,632$0$0$1,330,468
74$1,886,885$0$0$1,386,779
75$1,967,501$0$0$1,446,333
76$2,052,816$0$0$1,509,382
77$2,143,200$0$0$1,576,201
78$2,239,054$0$0$1,647,091
79$2,340,818$0$0$1,722,380
80$2,448,974$0$0$1,802,428
81$2,564,047$0$0$1,887,628
82$2,686,615$0$0$1,978,411
83$2,817,306$0$0$2,075,249
84$2,956,813$0$0$2,178,658
85$3,105,893$0$0$2,289,205
86$3,265,374$0$0$2,407,510
87$3,436,166$0$0$2,534,253
88$3,619,268$0$0$2,670,180
89$3,815,773$0$0$2,816,112
90$4,026,883$0$0$2,972,946
91$4,253,916$0$0$3,141,670
92$4,498,320$0$0$3,323,366
93$4,761,683$0$0$3,519,224
94$5,045,753$0$0$3,730,551
95$5,352,447$0$0$3,958,783
96$5,683,872$0$0$4,205,498
97$6,042,345$0$0$4,472,430
98$6,430,412$0$0$4,761,485
99$6,850,872$0$0$5,074,758
100$7,306,803$0$0$5,414,555