Can I retire at age 40 with 585,000?

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 $585,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$48,309$47,878$47,459$47,049$46,649$45,392
2 years$23,915$23,470$23,038$22,620$22,214$20,957
3 years$15,785$15,338$14,907$14,493$14,093$12,875
4 years$11,721$11,275$10,849$10,441$10,051$8,882
5 years$9,283$8,840$8,419$8,020$7,641$6,523
6 years$7,658$7,218$6,804$6,413$6,046$4,980
7 years$6,498$6,062$5,654$5,273$4,917$3,904
8 years$5,628$5,196$4,795$4,423$4,079$3,118
9 years$4,952$4,524$4,130$3,768$3,435$2,525
10 years$4,412$3,988$3,601$3,248$2,927$2,067
11 years$3,970$3,550$3,170$2,827$2,517$1,706
12 years$3,602$3,186$2,813$2,479$2,181$1,418
13 years$3,291$2,880$2,513$2,189$1,902$1,184
14 years$3,024$2,617$2,258$1,943$1,668$993
15 years$2,793$2,391$2,039$1,733$1,468$836
16 years$2,592$2,194$1,849$1,552$1,298$706
17 years$2,414$2,020$1,682$1,394$1,151$598
18 years$2,256$1,867$1,536$1,256$1,023$507
19 years$2,115$1,730$1,406$1,135$912$430
20 years$1,988$1,608$1,290$1,028$814$366
21 years$1,874$1,498$1,187$933$729$312
22 years$1,770$1,398$1,094$848$653$266
23 years$1,675$1,308$1,010$773$586$227
24 years$1,588$1,225$934$705$527$194
25 years$1,508$1,150$865$644$474$166
26 years$1,435$1,080$802$588$427$142
27 years$1,367$1,017$745$539$385$121
28 years$1,304$958$693$493$348$104
29 years$1,245$904$644$453$314$89
30 years$1,191$854$600$415$284$76
31 years$1,140$807$560$381$256$65
32 years$1,092$764$522$351$232$56
33 years$1,048$723$488$322$210$48
34 years$1,006$685$456$297$190$41
35 years$966$650$426$273$172$35
36 years$929$617$398$251$156$30
37 years$894$586$373$232$141$26
38 years$861$557$349$214$128$22
39 years$830$530$327$197$116$19
40 years$800$504$307$182$105$16
41 years$772$480$288$168$96$14
42 years$745$457$270$155$87$12
43 years$719$435$253$143$79$10
44 years$695$415$238$132$71$9
45 years$672$396$223$122$65$8
46 years$650$377$210$112$59$6
47 years$629$360$197$104$53$6
48 years$609$344$185$96$49$5
49 years$590$328$174$89$44$4
50 years$571$314$163$82$40$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $585,000, adding $5,931 every year, while hoping to spend $26,574 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: 35/38/27 Blend
39$585,000$585,000$585,000$585,000
40$650,788$619,783$610,715$668,096
41$688,894$621,878$602,900$683,627
42$729,996$623,184$593,932$697,555
43$774,371$623,637$583,745$712,066
44$822,326$623,163$572,268$727,231
45$874,194$621,689$559,430$743,129
46$930,344$619,135$545,154$759,848
47$991,182$615,415$529,359$777,489
48$1,057,153$610,440$511,963$796,164
49$1,128,745$604,115$492,877$816,000
50$1,206,499$596,338$472,010$837,140
51$1,291,006$587,003$449,267$859,741
52$1,382,919$575,996$424,547$883,983
53$1,482,954$563,197$397,746$910,066
54$1,591,900$548,479$368,756$938,211
55$1,710,626$531,706$337,461$968,670
56$1,840,087$512,737$303,743$1,001,720
57$1,981,334$491,420$267,477$1,037,671
58$2,135,526$467,596$228,534$1,076,872
59$2,303,937$441,095$186,777$1,119,708
60$2,487,969$411,739$142,064$1,166,609
61$2,689,167$379,339$94,248$1,218,055
62$2,909,231$343,695$43,174$1,274,578
63$3,150,033$304,597$0$1,336,772
64$3,413,634$261,821$0$1,408,561
65$3,702,306$215,131$0$1,500,898
66$4,018,547$164,278$0$1,602,197
67$4,365,111$109,000$0$1,713,414
68$4,745,029$49,018$0$1,835,609
69$5,161,642$0$0$1,969,950
70$5,618,627$0$0$2,124,409
71$6,120,034$0$0$2,316,457
72$6,670,327$0$0$2,527,317
73$7,274,420$0$0$2,758,885
74$7,937,728$0$0$3,013,247
75$8,666,215$0$0$3,292,702
76$9,466,451$0$0$3,599,782
77$10,345,674$0$0$3,937,279
78$11,311,858$0$0$4,308,265
79$12,373,786$0$0$4,716,127
80$13,541,137$0$0$5,164,596
81$14,824,573$0$0$5,657,783
82$16,235,839$0$0$6,200,217
83$17,787,877$0$0$6,796,887
84$19,494,948$0$0$7,453,291
85$21,372,759$0$0$8,175,487
86$23,438,622$0$0$8,970,148
87$25,711,606$0$0$9,844,629
88$28,212,725$0$0$10,807,033
89$30,965,133$0$0$11,866,286
90$33,994,339$0$0$13,032,226
91$37,328,453$0$0$14,315,693
92$40,998,448$0$0$15,728,631
93$45,038,451$0$0$17,284,199
94$49,486,066$0$0$18,996,899
95$54,382,729$0$0$20,882,711
96$59,774,098$0$0$22,959,242
97$65,710,483$0$0$25,245,893
98$72,247,321$0$0$27,764,045
99$79,445,700$0$0$30,537,254
100$87,372,931$0$0$33,591,481