Can I retire at age 40 with 539,000?

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 $539,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$44,510$44,114$43,727$43,349$42,981$42,234
2 years$22,035$21,624$21,227$20,841$20,467$19,717
3 years$14,544$14,132$13,735$13,353$12,985$12,255
4 years$10,799$10,388$9,996$9,620$9,261$8,557
5 years$8,553$8,145$7,757$7,389$7,040$6,364
6 years$7,056$6,651$6,269$5,909$5,571$4,923
7 years$5,987$5,585$5,209$4,858$4,530$3,912
8 years$5,186$4,788$4,418$4,075$3,758$3,168
9 years$4,563$4,168$3,805$3,471$3,165$2,603
10 years$4,065$3,674$3,317$2,992$2,697$2,163
11 years$3,658$3,271$2,921$2,604$2,319$1,813
12 years$3,319$2,936$2,592$2,284$2,010$1,530
13 years$3,032$2,653$2,316$2,017$1,753$1,298
14 years$2,786$2,412$2,081$1,790$1,536$1,107
15 years$2,574$2,203$1,879$1,597$1,353$948
16 years$2,388$2,021$1,703$1,430$1,196$814
17 years$2,224$1,862$1,550$1,284$1,060$701
18 years$2,079$1,720$1,415$1,158$943$605
19 years$1,949$1,594$1,295$1,046$840$523
20 years$1,832$1,481$1,189$947$750$453
21 years$1,726$1,380$1,093$860$672$393
22 years$1,630$1,288$1,008$782$602$341
23 years$1,543$1,205$930$712$540$297
24 years$1,463$1,129$861$649$486$258
25 years$1,390$1,059$797$593$437$225
26 years$1,322$996$739$542$394$196
27 years$1,259$937$686$496$355$171
28 years$1,201$883$638$455$320$149
29 years$1,147$833$594$417$289$130
30 years$1,097$787$553$383$261$114
31 years$1,050$744$516$351$236$99
32 years$1,006$704$481$323$214$87
33 years$965$666$449$297$193$76
34 years$927$631$420$273$175$66
35 years$890$599$392$252$159$58
36 years$856$568$367$232$144$51
37 years$824$540$344$213$130$44
38 years$793$513$322$197$118$39
39 years$764$488$301$181$107$34
40 years$737$464$283$167$97$30
41 years$711$442$265$154$88$26
42 years$686$421$249$142$80$23
43 years$663$401$233$132$73$20
44 years$640$382$219$121$66$17
45 years$619$364$206$112$60$15
46 years$599$348$193$104$54$13
47 years$579$332$181$96$49$12
48 years$561$317$170$88$45$10
49 years$543$302$160$82$41$9
50 years$526$289$151$76$37$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $539,000, adding $2,255 every year, while hoping to spend $35,764 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: 59/28/13 Blend
39$539,000$539,000$539,000$539,000
40$596,304$567,737$559,383$629,434
41$619,074$557,504$540,069$641,799
42$642,969$545,570$518,910$651,080
43$668,064$531,815$495,806$660,349
44$694,443$516,111$470,653$669,608
45$722,198$498,322$443,341$678,862
46$751,427$478,304$413,757$688,118
47$782,237$455,906$381,783$697,385
48$814,746$430,966$347,293$706,675
49$849,082$403,315$310,159$716,005
50$885,383$372,773$270,245$725,395
51$923,803$339,149$227,409$734,867
52$964,507$302,244$181,504$744,453
53$1,007,677$261,844$132,374$754,186
54$1,053,512$217,726$79,860$764,109
55$1,102,227$169,652$23,793$774,270
56$1,154,061$117,372$0$784,727
57$1,209,274$60,621$0$800,545
58$1,268,149$0$0$820,650
59$1,330,999$0$0$842,125
60$1,398,165$0$0$885,062
61$1,470,021$0$0$931,026
62$1,546,977$0$0$980,282
63$1,629,484$0$0$1,033,122
64$1,718,035$0$0$1,089,866
65$1,813,172$0$0$1,150,867
66$1,915,490$0$0$1,216,509
67$2,025,641$0$0$1,287,217
68$2,144,343$0$0$1,363,455
69$2,272,384$0$0$1,445,736
70$2,410,628$0$0$1,534,620
71$2,560,027$0$0$1,630,726
72$2,721,625$0$0$1,734,730
73$2,896,571$0$0$1,847,380
74$3,086,128$0$0$1,969,495
75$3,291,684$0$0$2,101,976
76$3,514,765$0$0$2,245,816
77$3,757,053$0$0$2,402,105
78$4,020,392$0$0$2,572,042
79$4,306,816$0$0$2,756,948
80$4,618,560$0$0$2,958,275
81$4,958,084$0$0$3,177,622
82$5,328,095$0$0$3,416,746
83$5,731,572$0$0$3,677,583
84$6,171,795$0$0$3,962,264
85$6,652,371$0$0$4,273,134
86$7,177,274$0$0$4,612,774
87$7,750,878$0$0$4,984,027
88$8,377,998$0$0$5,390,021
89$9,063,934$0$0$5,834,202
90$9,814,524$0$0$6,320,363
91$10,636,196$0$0$6,852,681
92$11,536,027$0$0$7,435,756
93$12,521,811$0$0$8,074,653
94$13,602,132$0$0$8,774,953
95$14,786,443$0$0$9,542,799
96$16,085,156$0$0$10,384,958
97$17,509,739$0$0$11,308,885
98$19,072,821$0$0$12,322,788
99$20,788,317$0$0$13,435,713
100$22,671,550$0$0$14,657,620