Can I retire at age 42 with 500,000?

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 $500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.8%
1 years$41,290$40,922$40,563$40,213$39,871$38,456
2 years$20,440$20,060$19,691$19,333$18,986$17,576
3 years$13,492$13,109$12,741$12,387$12,046$10,684
4 years$10,018$9,637$9,272$8,924$8,591$7,289
5 years$7,934$7,555$7,196$6,855$6,531$5,291
6 years$6,545$6,169$5,815$5,482$5,168$3,992
7 years$5,554$5,181$4,832$4,507$4,203$3,090
8 years$4,811$4,441$4,098$3,781$3,486$2,436
9 years$4,233$3,867$3,530$3,220$2,936$1,947
10 years$3,771$3,408$3,077$2,776$2,502$1,572
11 years$3,393$3,034$2,709$2,416$2,152$1,279
12 years$3,079$2,723$2,404$2,119$1,864$1,047
13 years$2,813$2,461$2,148$1,871$1,626$862
14 years$2,585$2,237$1,930$1,661$1,425$712
15 years$2,388$2,044$1,743$1,481$1,255$590
16 years$2,215$1,875$1,580$1,326$1,109$490
17 years$2,063$1,727$1,438$1,191$983$408
18 years$1,928$1,596$1,312$1,074$874$341
19 years$1,808$1,479$1,202$970$779$285
20 years$1,699$1,374$1,103$879$696$238
21 years$1,601$1,280$1,014$798$623$199
22 years$1,512$1,195$935$725$558$167
23 years$1,431$1,118$863$660$501$140
24 years$1,357$1,047$798$602$451$118
25 years$1,289$983$739$550$405$99
26 years$1,226$923$686$503$365$83
27 years$1,168$869$637$460$329$70
28 years$1,114$819$592$422$297$59
29 years$1,064$773$551$387$268$49
30 years$1,018$730$513$355$242$41
31 years$974$690$478$326$219$35
32 years$934$653$446$300$198$29
33 years$895$618$417$276$179$25
34 years$860$586$389$254$162$21
35 years$826$556$364$233$147$17
36 years$794$527$341$215$133$15
37 years$764$501$319$198$121$12
38 years$736$476$298$183$110$10
39 years$709$453$280$168$99$9
40 years$684$431$262$155$90$7
41 years$659$410$246$143$82$6
42 years$637$390$231$132$74$5
43 years$615$372$216$122$67$4
44 years$594$355$203$113$61$4
45 years$574$338$191$104$55$3
46 years$555$323$179$96$50$3
47 years$538$308$168$89$46$2
48 years$520$294$158$82$42$2
49 years$504$281$149$76$38$2
50 years$488$268$140$70$34$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $500,000, adding $6,315 every year, while hoping to spend $30,519 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: 29/50/21 Blend
41$500,000$500,000$500,000$500,000
42$557,514$531,014$523,264$569,856
43$581,908$524,562$508,321$573,407
44$607,768$516,770$491,855$574,073
45$635,211$507,542$473,782$574,145
46$664,364$496,773$454,016$573,590
47$695,368$484,354$432,465$572,376
48$728,377$470,169$409,033$570,470
49$763,558$454,094$383,623$567,840
50$801,095$435,999$356,129$564,454
51$841,191$415,747$326,443$560,280
52$884,065$393,191$294,451$555,288
53$929,961$368,179$260,036$549,450
54$979,143$340,545$223,073$542,736
55$1,031,902$310,119$183,433$535,123
56$1,088,559$276,718$140,981$526,588
57$1,149,465$240,149$95,577$517,111
58$1,215,003$200,210$47,072$506,677
59$1,285,598$156,685$0$495,275
60$1,361,714$109,347$0$483,951
61$1,443,860$57,956$0$482,978
62$1,532,597$2,260$0$481,846
63$1,628,542$0$0$480,609
64$1,732,371$0$0$511,253
65$1,844,829$0$0$545,858
66$1,966,735$0$0$583,439
67$2,098,986$0$0$624,284
68$2,242,575$0$0$668,707
69$2,398,588$0$0$717,054
70$2,568,224$0$0$769,708
71$2,752,800$0$0$827,087
72$2,953,764$0$0$889,652
73$3,172,713$0$0$957,913
74$3,411,401$0$0$1,032,428
75$3,671,760$0$0$1,113,813
76$3,955,916$0$0$1,202,746
77$4,266,209$0$0$1,299,973
78$4,605,216$0$0$1,406,315
79$4,975,774$0$0$1,522,677
80$5,381,004$0$0$1,650,055
81$5,824,345$0$0$1,789,545
82$6,309,583$0$0$1,942,356
83$6,840,887$0$0$2,109,817
84$7,422,847$0$0$2,293,394
85$8,060,519$0$0$2,494,699
86$8,759,471$0$0$2,715,509
87$9,525,834$0$0$2,957,783
88$10,366,363$0$0$3,223,675
89$11,288,495$0$0$3,515,560
90$12,300,425$0$0$3,836,054
91$13,411,178$0$0$4,188,038
92$14,630,696$0$0$4,574,688
93$15,969,928$0$0$4,999,499
94$17,440,940$0$0$5,466,323
95$19,057,021$0$0$5,979,405
96$20,832,810$0$0$6,543,421
97$22,784,437$0$0$7,163,520
98$24,929,671$0$0$7,845,379
99$27,288,087$0$0$8,595,250
100$29,881,252$0$0$9,420,021