Can I retire at age 40 with 586,000?

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 $586,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.7%
1 years$48,391$47,960$47,540$47,129$46,728$45,451
2 years$23,956$23,510$23,078$22,658$22,252$20,974
3 years$15,812$15,364$14,933$14,517$14,117$12,880
4 years$11,741$11,294$10,867$10,459$10,069$8,880
5 years$9,299$8,855$8,433$8,033$7,654$6,518
6 years$7,671$7,231$6,815$6,424$6,056$4,974
7 years$6,509$6,072$5,664$5,282$4,925$3,897
8 years$5,638$5,205$4,803$4,431$4,086$3,111
9 years$4,961$4,532$4,137$3,774$3,441$2,518
10 years$4,419$3,995$3,607$3,253$2,932$2,060
11 years$3,977$3,556$3,175$2,831$2,522$1,699
12 years$3,608$3,192$2,818$2,483$2,185$1,411
13 years$3,296$2,885$2,518$2,193$1,906$1,178
14 years$3,029$2,622$2,262$1,946$1,670$987
15 years$2,798$2,395$2,042$1,736$1,471$830
16 years$2,596$2,198$1,852$1,554$1,300$701
17 years$2,418$2,024$1,685$1,396$1,153$593
18 years$2,260$1,870$1,538$1,258$1,025$502
19 years$2,119$1,733$1,408$1,137$913$426
20 years$1,992$1,611$1,292$1,030$816$362
21 years$1,877$1,500$1,189$935$730$308
22 years$1,773$1,400$1,096$850$654$263
23 years$1,678$1,310$1,012$774$587$224
24 years$1,591$1,227$936$706$528$191
25 years$1,511$1,152$866$645$475$163
26 years$1,437$1,082$804$589$428$139
27 years$1,369$1,019$746$540$386$119
28 years$1,306$960$694$494$348$102
29 years$1,247$905$646$453$314$87
30 years$1,193$855$601$416$284$75
31 years$1,142$808$561$382$257$64
32 years$1,094$765$523$351$232$55
33 years$1,049$724$488$323$210$47
34 years$1,007$687$456$297$190$40
35 years$968$651$427$274$172$34
36 years$931$618$399$252$156$29
37 years$896$587$374$232$142$25
38 years$862$558$350$214$128$22
39 years$831$530$328$197$116$18
40 years$801$505$307$182$106$16
41 years$773$480$288$168$96$14
42 years$746$458$270$155$87$12
43 years$721$436$254$143$79$10
44 years$696$416$238$132$72$9
45 years$673$396$223$122$65$7
46 years$651$378$210$113$59$6
47 years$630$361$197$104$54$5
48 years$610$344$185$96$49$5
49 years$591$329$174$89$44$4
50 years$572$314$164$82$40$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $586,000, adding $5,516 every year, while hoping to spend $38,339 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: 85/6/9 Blend
39$586,000$586,000$586,000$586,000
40$651,462$620,404$611,321$705,607
41$677,118$610,011$591,008$731,403
42$704,107$597,824$568,729$753,963
43$732,523$583,715$544,379$777,550
44$762,471$567,547$517,845$802,243
45$794,062$549,177$489,013$828,128
46$827,422$528,451$457,760$855,299
47$862,684$505,210$423,959$883,861
48$899,994$479,282$387,479$913,928
49$939,514$450,487$348,180$945,626
50$981,418$418,635$305,917$979,094
51$1,025,897$383,522$260,540$1,014,485
52$1,073,161$344,938$211,891$1,051,966
53$1,123,439$302,655$159,805$1,091,722
54$1,176,981$256,436$104,109$1,133,958
55$1,234,060$206,029$44,624$1,178,897
56$1,294,979$151,169$0$1,226,788
57$1,360,065$91,574$0$1,279,712
58$1,429,679$26,949$0$1,340,852
59$1,504,217$0$0$1,406,266
60$1,584,112$0$0$1,479,183
61$1,669,840$0$0$1,559,337
62$1,761,923$0$0$1,645,440
63$1,860,933$0$0$1,738,028
64$1,967,501$0$0$1,837,689
65$2,082,316$0$0$1,945,070
66$2,206,138$0$0$2,060,882
67$2,339,799$0$0$2,185,906
68$2,484,215$0$0$2,320,999
69$2,640,394$0$0$2,467,103
70$2,809,440$0$0$2,625,255
71$2,992,571$0$0$2,796,594
72$3,191,123$0$0$2,982,371
73$3,406,566$0$0$3,183,964
74$3,640,518$0$0$3,402,887
75$3,894,757$0$0$3,640,807
76$4,171,240$0$0$3,899,555
77$4,472,120$0$0$4,181,149
78$4,799,765$0$0$4,487,805
79$5,156,782$0$0$4,821,967
80$5,546,039$0$0$5,186,319
81$5,970,693$0$0$5,583,820
82$6,434,219$0$0$6,017,723
83$6,940,441$0$0$6,491,612
84$7,493,572$0$0$7,009,430
85$8,098,245$0$0$7,575,519
86$8,759,566$0$0$8,194,660
87$9,483,153$0$0$8,872,115
88$10,275,195$0$0$9,613,682
89$11,142,504$0$0$10,425,742
90$12,092,586$0$0$11,315,323
91$13,133,702$0$0$12,290,165
92$14,274,955$0$0$13,358,792
93$15,526,365$0$0$14,530,593
94$16,898,974$0$0$15,815,907
95$18,404,939$0$0$17,226,124
96$20,057,655$0$0$18,773,789
97$21,871,873$0$0$20,472,719
98$23,863,844$0$0$22,338,136
99$26,051,468$0$0$24,386,808
100$28,454,466$0$0$26,637,205