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%13.7%
1 years$48,391$47,960$47,540$47,129$46,728$46,011
2 years$23,956$23,510$23,078$22,658$22,252$21,531
3 years$15,812$15,364$14,933$14,517$14,117$13,415
4 years$11,741$11,294$10,867$10,459$10,069$9,391
5 years$9,299$8,855$8,433$8,033$7,654$7,002
6 years$7,671$7,231$6,815$6,424$6,056$5,432
7 years$6,509$6,072$5,664$5,282$4,925$4,328
8 years$5,638$5,205$4,803$4,431$4,086$3,515
9 years$4,961$4,532$4,137$3,774$3,441$2,897
10 years$4,419$3,995$3,607$3,253$2,932$2,414
11 years$3,977$3,556$3,175$2,831$2,522$2,030
12 years$3,608$3,192$2,818$2,483$2,185$1,719
13 years$3,296$2,885$2,518$2,193$1,906$1,463
14 years$3,029$2,622$2,262$1,946$1,670$1,252
15 years$2,798$2,395$2,042$1,736$1,471$1,075
16 years$2,596$2,198$1,852$1,554$1,300$927
17 years$2,418$2,024$1,685$1,396$1,153$801
18 years$2,260$1,870$1,538$1,258$1,025$694
19 years$2,119$1,733$1,408$1,137$913$602
20 years$1,992$1,611$1,292$1,030$816$524
21 years$1,877$1,500$1,189$935$730$456
22 years$1,773$1,400$1,096$850$654$398
23 years$1,678$1,310$1,012$774$587$347
24 years$1,591$1,227$936$706$528$303
25 years$1,511$1,152$866$645$475$265
26 years$1,437$1,082$804$589$428$232
27 years$1,369$1,019$746$540$386$203
28 years$1,306$960$694$494$348$178
29 years$1,247$905$646$453$314$156
30 years$1,193$855$601$416$284$137
31 years$1,142$808$561$382$257$120
32 years$1,094$765$523$351$232$105
33 years$1,049$724$488$323$210$92
34 years$1,007$687$456$297$190$81
35 years$968$651$427$274$172$71
36 years$931$618$399$252$156$63
37 years$896$587$374$232$142$55
38 years$862$558$350$214$128$48
39 years$831$530$328$197$116$42
40 years$801$505$307$182$106$37
41 years$773$480$288$168$96$33
42 years$746$458$270$155$87$29
43 years$721$436$254$143$79$25
44 years$696$416$238$132$72$22
45 years$673$396$223$122$65$20
46 years$651$378$210$113$59$17
47 years$630$361$197$104$54$15
48 years$610$344$185$96$49$13
49 years$591$329$174$89$44$12
50 years$572$314$164$82$40$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $586,000, adding $3,953 every year, while hoping to spend $49,887 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: 43/45/12 Blend
39$586,000$586,000$586,000$586,000
40$649,850$618,792$609,709$675,369
41$663,055$596,033$577,054$670,831
42$675,935$570,487$541,634$660,599
43$688,404$541,965$503,303$648,411
44$700,367$510,266$461,909$634,107
45$711,714$475,179$417,292$617,516
46$722,326$436,480$369,289$598,455
47$732,068$393,932$317,725$576,728
48$740,789$347,286$262,419$552,123
49$748,323$296,276$203,183$524,413
50$754,482$240,624$139,820$493,353
51$759,059$180,034$72,124$458,679
52$761,824$114,196$0$420,110
53$762,518$42,780$0$377,355
54$760,857$0$0$339,928
55$756,525$0$0$315,375
56$749,169$0$0$310,532
57$738,401$0$0$304,028
58$723,789$0$0$295,659
59$704,853$0$0$285,195
60$681,063$0$0$272,385
61$651,833$0$0$256,948
62$616,513$0$0$238,576
63$574,382$0$0$216,925
64$524,647$0$0$191,617
65$466,426$0$0$162,233
66$398,748$0$0$128,311
67$320,535$0$0$89,339
68$230,600$0$0$44,752
69$127,629$0$0$0
70$10,171$0$0$0
71$0$0$0$0
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$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