Can I retire at age 40 with 509,000?

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 $509,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.2%
1 years$42,033$41,658$41,293$40,937$40,588$40,383
2 years$20,808$20,421$20,045$19,681$19,328$19,121
3 years$13,734$13,345$12,971$12,610$12,262$12,060
4 years$10,198$9,810$9,439$9,085$8,746$8,549
5 years$8,077$7,691$7,325$6,978$6,648$6,459
6 years$6,663$6,280$5,920$5,580$5,261$5,078
7 years$5,654$5,274$4,919$4,588$4,278$4,102
8 years$4,897$4,521$4,172$3,849$3,549$3,380
9 years$4,309$3,936$3,593$3,278$2,989$2,827
10 years$3,839$3,470$3,133$2,826$2,547$2,392
11 years$3,454$3,089$2,758$2,459$2,190$2,042
12 years$3,134$2,772$2,448$2,157$1,898$1,757
13 years$2,863$2,505$2,187$1,904$1,655$1,520
14 years$2,631$2,277$1,965$1,691$1,451$1,322
15 years$2,431$2,080$1,774$1,508$1,277$1,155
16 years$2,255$1,909$1,608$1,350$1,129$1,013
17 years$2,100$1,758$1,464$1,213$1,001$891
18 years$1,963$1,624$1,336$1,093$890$785
19 years$1,840$1,505$1,223$988$793$694
20 years$1,730$1,399$1,123$895$709$615
21 years$1,630$1,303$1,033$812$634$545
22 years$1,540$1,216$952$738$568$485
23 years$1,457$1,138$879$672$510$431
24 years$1,382$1,066$813$613$459$384
25 years$1,312$1,000$753$560$413$342
26 years$1,248$940$698$512$372$306
27 years$1,189$885$648$469$335$273
28 years$1,134$834$603$429$302$244
29 years$1,084$787$561$394$273$218
30 years$1,036$743$522$361$247$195
31 years$992$702$487$332$223$175
32 years$950$664$454$305$202$157
33 years$912$629$424$280$183$140
34 years$875$596$396$258$165$126
35 years$841$566$371$238$150$113
36 years$808$537$347$219$136$101
37 years$778$510$324$202$123$91
38 years$749$485$304$186$111$82
39 years$722$461$285$171$101$73
40 years$696$438$267$158$92$66
41 years$671$417$250$146$83$59
42 years$648$397$235$135$75$53
43 years$626$379$220$124$69$48
44 years$605$361$207$115$62$43
45 years$585$344$194$106$56$38
46 years$565$328$182$98$51$35
47 years$547$313$171$90$47$31
48 years$530$299$161$84$42$28
49 years$513$286$151$77$38$25
50 years$497$273$142$71$35$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $509,000, adding $3,025 every year, while hoping to spend $32,673 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: 74/12/14 Blend
39$509,000$509,000$509,000$509,000
40$564,038$537,061$529,172$603,865
41$586,806$528,613$512,135$622,163
42$610,802$518,657$493,433$637,866
43$636,115$507,082$472,974$654,188
44$662,845$493,776$450,666$671,183
45$691,100$478,615$426,407$688,910
46$720,997$461,473$400,097$707,432
47$752,665$442,211$371,626$726,823
48$786,244$420,686$340,883$747,161
49$821,887$396,746$307,749$768,537
50$859,763$370,230$272,102$791,049
51$900,054$340,967$233,813$814,807
52$942,962$308,777$192,748$839,932
53$988,706$273,469$148,767$866,560
54$1,037,527$234,842$101,723$894,840
55$1,089,690$192,683$51,466$924,939
56$1,145,482$146,769$0$957,043
57$1,205,221$96,860$0$991,678
58$1,269,255$42,708$0$1,036,974
59$1,337,965$0$0$1,085,513
60$1,411,770$0$0$1,139,707
61$1,491,129$0$0$1,204,058
62$1,576,546$0$0$1,273,339
63$1,668,576$0$0$1,347,999
64$1,767,826$0$0$1,428,536
65$1,874,965$0$0$1,515,493
66$1,990,727$0$0$1,609,469
67$2,115,918$0$0$1,711,122
68$2,251,427$0$0$1,821,174
69$2,398,228$0$0$1,940,420
70$2,557,392$0$0$2,069,734
71$2,730,100$0$0$2,210,077
72$2,917,647$0$0$2,362,506
73$3,121,460$0$0$2,528,183
74$3,343,108$0$0$2,708,387
75$3,584,316$0$0$2,904,525
76$3,846,984$0$0$3,118,146
77$4,133,202$0$0$3,350,952
78$4,445,270$0$0$3,604,820
79$4,785,719$0$0$3,881,813
80$5,157,335$0$0$4,184,202
81$5,563,185$0$0$4,514,487
82$6,006,646$0$0$4,875,422
83$6,491,434$0$0$5,270,036
84$7,021,642$0$0$5,701,667
85$7,601,776$0$0$6,173,988
86$8,236,797$0$0$6,691,044
87$8,932,169$0$0$7,257,290
88$9,693,909$0$0$7,877,632
89$10,528,641$0$0$8,557,472
90$11,443,664$0$0$9,302,759
91$12,447,014$0$0$10,120,048
92$13,547,543$0$0$11,016,554
93$14,755,000$0$0$12,000,228
94$16,080,124$0$0$13,079,827
95$17,534,744$0$0$14,264,995
96$19,131,891$0$0$15,566,358
97$20,885,918$0$0$16,995,620
98$22,812,637$0$0$18,565,673
99$24,929,466$0$0$20,290,721
100$27,255,595$0$0$22,186,411