Can I retire at age 40 with 516,000?

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 $516,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.3%
1 years$42,611$42,231$41,861$41,499$41,147$40,582
2 years$21,094$20,702$20,321$19,952$19,594$19,026
3 years$13,923$13,529$13,149$12,783$12,431$11,878
4 years$10,338$9,945$9,569$9,210$8,866$8,331
5 years$8,188$7,797$7,426$7,074$6,740$6,225
6 years$6,755$6,367$6,001$5,657$5,333$4,839
7 years$5,732$5,347$4,987$4,651$4,337$3,864
8 years$4,965$4,583$4,229$3,902$3,598$3,146
9 years$4,368$3,991$3,643$3,323$3,030$2,599
10 years$3,891$3,517$3,176$2,865$2,582$2,171
11 years$3,502$3,131$2,796$2,493$2,220$1,830
12 years$3,177$2,811$2,481$2,187$1,924$1,553
13 years$2,903$2,540$2,217$1,931$1,678$1,326
14 years$2,668$2,309$1,992$1,714$1,471$1,138
15 years$2,464$2,109$1,798$1,528$1,295$980
16 years$2,286$1,935$1,631$1,369$1,145$847
17 years$2,129$1,782$1,484$1,230$1,015$734
18 years$1,990$1,647$1,354$1,108$902$638
19 years$1,866$1,526$1,240$1,001$804$555
20 years$1,754$1,418$1,138$907$718$484
21 years$1,653$1,321$1,047$823$643$423
22 years$1,561$1,233$965$748$576$370
23 years$1,477$1,153$891$682$517$324
24 years$1,401$1,081$824$622$465$284
25 years$1,330$1,014$763$568$418$249
26 years$1,266$953$708$519$377$218
27 years$1,206$897$657$475$340$192
28 years$1,150$845$611$435$307$169
29 years$1,098$797$568$399$277$148
30 years$1,050$753$529$366$250$131
31 years$1,005$712$494$336$226$115
32 years$963$674$461$309$205$101
33 years$924$638$430$284$185$89
34 years$887$605$402$262$168$78
35 years$852$573$376$241$152$69
36 years$820$544$351$222$138$61
37 years$789$517$329$204$125$54
38 years$759$491$308$188$113$47
39 years$732$467$289$174$102$42
40 years$705$444$270$160$93$37
41 years$681$423$254$148$84$32
42 years$657$403$238$136$77$29
43 years$634$384$223$126$69$25
44 years$613$366$210$116$63$22
45 years$593$349$197$107$57$20
46 years$573$333$185$99$52$17
47 years$555$318$174$92$47$15
48 years$537$303$163$85$43$13
49 years$520$290$153$78$39$12
50 years$504$277$144$72$35$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $516,000, adding $5,873 every year, while hoping to spend $41,172 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: 67/20/13 Blend
39$516,000$516,000$516,000$516,000
40$574,690$547,342$539,344$611,113
41$589,502$530,355$513,605$619,140
42$604,444$511,156$485,625$622,500
43$619,488$489,593$455,283$625,124
44$634,597$465,504$422,457$626,937
45$649,733$438,721$387,016$627,857
46$664,851$409,064$348,827$627,795
47$679,900$376,342$307,746$626,654
48$694,821$340,354$263,627$624,331
49$709,550$300,889$216,316$620,711
50$724,013$257,721$165,651$615,671
51$738,127$210,614$111,465$609,079
52$751,799$159,317$53,582$600,790
53$764,924$103,565$0$590,646
54$777,386$43,080$0$579,613
55$789,054$0$0$574,376
56$799,782$0$0$572,259
57$809,407$0$0$578,790
58$817,747$0$0$584,355
59$824,600$0$0$588,803
60$829,741$0$0$591,968
61$832,918$0$0$593,663
62$833,853$0$0$593,682
63$832,237$0$0$591,796
64$827,726$0$0$587,751
65$819,939$0$0$581,265
66$808,453$0$0$572,024
67$792,799$0$0$559,682
68$772,458$0$0$543,855
69$746,854$0$0$524,116
70$715,350$0$0$499,995
71$677,240$0$0$470,970
72$631,745$0$0$436,463
73$577,999$0$0$395,836
74$515,049$0$0$348,383
75$441,838$0$0$293,324
76$357,199$0$0$229,795
77$259,840$0$0$156,842
78$148,336$0$0$73,412
79$21,112$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