Can I retire at age 40 with 589,000?

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 $589,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.9%
1 years$48,639$48,206$47,783$47,371$46,968$45,283
2 years$24,079$23,630$23,196$22,774$22,366$20,687
3 years$15,893$15,443$15,009$14,592$14,190$12,569
4 years$11,801$11,352$10,923$10,513$10,120$8,570
5 years$9,346$8,900$8,477$8,075$7,693$6,218
6 years$7,711$7,268$6,850$6,457$6,087$4,688
7 years$6,543$6,103$5,693$5,309$4,951$3,627
8 years$5,667$5,232$4,828$4,454$4,107$2,858
9 years$4,986$4,555$4,158$3,793$3,459$2,283
10 years$4,442$4,015$3,625$3,270$2,947$1,842
11 years$3,997$3,574$3,192$2,846$2,535$1,498
12 years$3,627$3,208$2,832$2,496$2,196$1,226
13 years$3,313$2,899$2,531$2,204$1,915$1,008
14 years$3,045$2,635$2,274$1,956$1,679$832
15 years$2,813$2,407$2,053$1,745$1,478$689
16 years$2,609$2,209$1,861$1,562$1,306$572
17 years$2,430$2,034$1,694$1,404$1,158$476
18 years$2,272$1,880$1,546$1,265$1,030$397
19 years$2,130$1,742$1,415$1,143$918$331
20 years$2,002$1,619$1,299$1,035$820$277
21 years$1,886$1,508$1,195$939$734$232
22 years$1,782$1,408$1,101$854$658$194
23 years$1,686$1,316$1,017$778$590$163
24 years$1,599$1,233$940$710$531$136
25 years$1,519$1,158$871$648$478$114
26 years$1,445$1,088$808$592$430$96
27 years$1,376$1,024$750$542$388$81
28 years$1,313$965$697$497$350$68
29 years$1,254$910$649$456$316$57
30 years$1,199$860$604$418$286$48
31 years$1,148$813$563$384$258$40
32 years$1,100$769$526$353$234$34
33 years$1,055$728$491$325$211$28
34 years$1,013$690$459$299$191$24
35 years$973$655$429$275$173$20
36 years$935$621$401$253$157$17
37 years$900$590$375$233$142$14
38 years$867$561$352$215$129$12
39 years$835$533$329$198$117$10
40 years$805$507$309$183$106$8
41 years$777$483$290$169$96$7
42 years$750$460$272$156$87$6
43 years$724$438$255$144$79$5
44 years$700$418$239$133$72$4
45 years$677$398$225$123$65$4
46 years$654$380$211$113$59$3
47 years$633$363$198$105$54$3
48 years$613$346$186$97$49$2
49 years$594$331$175$89$44$2
50 years$575$316$165$83$40$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $589,000, adding $6,018 every year, while hoping to spend $48,637 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: 76/11/13 Blend
39$589,000$589,000$589,000$589,000
40$655,286$624,069$614,939$702,904
41$670,375$602,899$583,790$713,972
42$685,374$579,061$549,968$719,381
43$700,221$552,374$513,331$723,961
44$714,848$522,645$473,732$727,612
45$729,179$489,670$431,017$730,226
46$743,125$453,234$385,027$731,684
47$756,590$413,109$335,592$731,856
48$769,466$369,055$282,537$730,599
49$781,629$320,816$225,680$727,758
50$792,944$268,125$164,829$723,161
51$803,258$210,697$99,784$716,621
52$812,401$148,232$30,338$707,934
53$820,184$80,413$0$696,876
54$826,395$6,906$0$689,272
55$830,801$0$0$683,668
56$833,139$0$0$684,382
57$833,121$0$0$683,945
58$830,423$0$0$681,250
59$824,688$0$0$675,998
60$815,519$0$0$667,856
61$802,477$0$0$656,456
62$785,073$0$0$641,387
63$762,767$0$0$622,197
64$734,961$0$0$598,385
65$700,992$0$0$569,395
66$660,127$0$0$534,613
67$611,554$0$0$493,357
68$554,376$0$0$444,875
69$487,600$0$0$388,337
70$410,127$0$0$322,821
71$320,745$0$0$247,311
72$218,114$0$0$160,683
73$100,750$0$0$61,696
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