Can I retire at age 40 with 555,000?

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 $555,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$45,831$45,423$45,025$44,636$44,256$43,978
2 years$22,689$22,266$21,857$21,460$21,075$20,793
3 years$14,976$14,551$14,143$13,749$13,371$13,095
4 years$11,120$10,697$10,292$9,906$9,536$9,269
5 years$8,807$8,386$7,987$7,609$7,249$6,992
6 years$7,265$6,848$6,455$6,085$5,736$5,488
7 years$6,165$5,751$5,364$5,002$4,665$4,427
8 years$5,340$4,930$4,549$4,196$3,870$3,641
9 years$4,698$4,292$3,918$3,574$3,259$3,040
10 years$4,186$3,783$3,416$3,081$2,777$2,567
11 years$3,766$3,368$3,007$2,682$2,388$2,188
12 years$3,417$3,023$2,669$2,352$2,070$1,878
13 years$3,122$2,732$2,385$2,077$1,805$1,623
14 years$2,869$2,483$2,143$1,843$1,582$1,409
15 years$2,650$2,268$1,934$1,644$1,393$1,228
16 years$2,459$2,081$1,754$1,472$1,231$1,074
17 years$2,290$1,917$1,596$1,323$1,092$943
18 years$2,140$1,771$1,457$1,192$971$830
19 years$2,007$1,642$1,334$1,077$865$732
20 years$1,886$1,525$1,224$975$773$647
21 years$1,778$1,421$1,126$885$691$572
22 years$1,679$1,326$1,038$805$620$507
23 years$1,589$1,240$958$733$556$450
24 years$1,507$1,162$886$669$500$400
25 years$1,431$1,091$821$611$450$356
26 years$1,361$1,025$761$558$405$317
27 years$1,297$965$707$511$365$283
28 years$1,237$909$657$468$330$252
29 years$1,181$858$611$429$298$225
30 years$1,130$810$570$394$269$201
31 years$1,081$766$531$362$243$179
32 years$1,036$724$495$333$220$160
33 years$994$686$463$306$199$143
34 years$954$650$432$281$180$128
35 years$917$617$404$259$163$115
36 years$881$585$378$239$148$103
37 years$848$556$354$220$134$92
38 years$817$528$331$203$122$82
39 years$787$502$310$187$110$74
40 years$759$478$291$172$100$66
41 years$732$455$273$159$91$59
42 years$707$433$256$147$82$53
43 years$682$413$240$135$75$47
44 years$659$394$225$125$68$42
45 years$637$375$212$115$62$38
46 years$617$358$199$107$56$34
47 years$597$342$187$99$51$31
48 years$578$326$175$91$46$27
49 years$559$311$165$84$42$25
50 years$542$298$155$78$38$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $555,000, adding $4,564 every year, while hoping to spend $40,223 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: 41/34/25 Blend
39$555,000$555,000$555,000$555,000
40$616,318$586,903$578,300$636,893
41$636,385$572,864$554,876$638,077
42$657,151$556,789$529,320$635,213
43$678,645$538,536$501,516$631,323
44$700,897$517,955$471,347$626,337
45$723,939$494,885$438,688$620,181
46$747,805$469,158$403,408$612,775
47$772,531$440,597$365,372$604,038
48$798,156$409,013$324,438$593,883
49$824,719$374,206$280,458$582,219
50$852,264$335,965$233,277$568,950
51$880,836$294,069$182,733$553,977
52$910,484$248,281$128,658$537,193
53$941,260$198,354$70,875$518,489
54$973,220$144,024$9,200$497,747
55$1,006,422$85,015$0$474,846
56$1,040,929$21,033$0$464,762
57$1,076,809$0$0$455,859
58$1,114,135$0$0$463,641
59$1,152,984$0$0$479,941
60$1,193,440$0$0$496,929
61$1,235,592$0$0$514,642
62$1,279,537$0$0$533,123
63$1,325,378$0$0$552,417
64$1,373,228$0$0$572,575
65$1,423,208$0$0$593,649
66$1,475,448$0$0$615,696
67$1,530,089$0$0$638,779
68$1,587,284$0$0$662,966
69$1,647,199$0$0$688,329
70$1,710,012$0$0$714,948
71$1,775,918$0$0$742,909
72$1,845,128$0$0$772,306
73$1,917,872$0$0$803,241
74$1,994,399$0$0$835,823
75$2,074,980$0$0$870,175
76$2,159,911$0$0$906,427
77$2,249,513$0$0$944,723
78$2,344,137$0$0$985,219
79$2,444,165$0$0$1,028,086
80$2,550,016$0$0$1,073,510
81$2,662,145$0$0$1,121,694
82$2,781,049$0$0$1,172,863
83$2,907,274$0$0$1,227,258
84$3,041,415$0$0$1,285,147
85$3,184,122$0$0$1,346,821
86$3,336,109$0$0$1,412,598
87$3,498,155$0$0$1,482,830
88$3,671,115$0$0$1,557,900
89$3,855,926$0$0$1,638,226
90$4,053,614$0$0$1,724,271
91$4,265,305$0$0$1,816,539
92$4,492,231$0$0$1,915,585
93$4,735,748$0$0$2,022,017
94$4,997,341$0$0$2,136,503
95$5,278,641$0$0$2,259,775
96$5,581,438$0$0$2,392,641
97$5,907,698$0$0$2,535,983
98$6,259,580$0$0$2,690,773
99$6,639,457$0$0$2,858,080
100$7,049,936$0$0$3,039,077