Can I retire at age 42 with 540,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $540,000?

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$44,593$44,195$43,808$43,430$43,060$42,399
2 years$22,076$21,664$21,266$20,880$20,505$19,841
3 years$14,571$14,158$13,761$13,378$13,009$12,362
4 years$10,819$10,408$10,014$9,638$9,278$8,654
5 years$8,569$8,160$7,771$7,403$7,053$6,453
6 years$7,069$6,663$6,280$5,920$5,581$5,005
7 years$5,998$5,596$5,219$4,867$4,539$3,988
8 years$5,195$4,796$4,426$4,083$3,765$3,240
9 years$4,571$4,176$3,812$3,478$3,171$2,670
10 years$4,072$3,681$3,324$2,998$2,702$2,225
11 years$3,665$3,277$2,926$2,609$2,324$1,870
12 years$3,325$2,941$2,597$2,289$2,014$1,584
13 years$3,038$2,658$2,320$2,020$1,756$1,349
14 years$2,792$2,416$2,085$1,794$1,539$1,154
15 years$2,579$2,207$1,882$1,599$1,355$991
16 years$2,392$2,025$1,706$1,432$1,198$854
17 years$2,228$1,865$1,553$1,287$1,062$738
18 years$2,083$1,723$1,417$1,160$944$639
19 years$1,952$1,597$1,298$1,048$842$555
20 years$1,835$1,484$1,191$949$752$483
21 years$1,730$1,382$1,095$861$673$420
22 years$1,633$1,290$1,010$783$603$366
23 years$1,546$1,207$932$713$541$320
24 years$1,466$1,131$862$650$487$279
25 years$1,392$1,061$798$594$438$244
26 years$1,324$997$741$543$394$214
27 years$1,262$939$688$497$356$187
28 years$1,204$884$639$456$321$164
29 years$1,150$834$595$418$290$144
30 years$1,099$788$554$383$262$126
31 years$1,052$745$517$352$237$111
32 years$1,008$705$482$324$214$97
33 years$967$668$450$298$194$85
34 years$928$633$420$274$175$75
35 years$892$600$393$252$159$66
36 years$858$570$368$232$144$58
37 years$825$541$344$214$130$51
38 years$795$514$322$197$118$45
39 years$766$489$302$182$107$39
40 years$738$465$283$168$97$34
41 years$712$443$265$155$88$30
42 years$687$422$249$143$80$27
43 years$664$402$234$132$73$23
44 years$642$383$219$122$66$21
45 years$620$365$206$112$60$18
46 years$600$348$193$104$54$16
47 years$581$332$182$96$49$14
48 years$562$317$171$89$45$12
49 years$544$303$160$82$41$11
50 years$527$289$151$76$37$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $540,000, adding $6,869 every year, while hoping to spend $38,675 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: 42/33/25 Blend
41$540,000$540,000$540,000$540,000
42$602,165$573,545$565,175$622,800
43$622,436$560,499$542,959$625,176
44$643,479$545,518$518,702$623,549
45$665,330$528,465$492,295$621,027
46$688,032$509,197$463,625$617,550
47$711,626$487,563$432,571$613,053
48$736,159$463,401$399,010$607,472
49$761,682$436,542$362,811$600,736
50$788,246$406,805$323,838$592,772
51$815,909$374,000$281,948$583,505
52$844,733$337,927$236,994$572,855
53$874,783$298,373$188,821$560,740
54$906,130$255,113$137,266$547,072
55$938,852$207,910$82,161$531,762
56$973,031$156,514$23,329$514,716
57$1,008,756$100,659$0$495,835
58$1,046,124$40,066$0$485,543
59$1,085,240$0$0$480,535
60$1,126,216$0$0$483,808
61$1,169,176$0$0$502,512
62$1,214,252$0$0$522,158
63$1,261,590$0$0$542,813
64$1,311,345$0$0$564,547
65$1,363,690$0$0$587,439
66$1,418,809$0$0$611,573
67$1,476,905$0$0$637,041
68$1,538,199$0$0$663,944
69$1,602,929$0$0$692,392
70$1,671,359$0$0$722,505
71$1,743,775$0$0$754,413
72$1,820,487$0$0$788,259
73$1,901,838$0$0$824,200
74$1,988,200$0$0$862,406
75$2,079,981$0$0$903,065
76$2,177,626$0$0$946,381
77$2,281,624$0$0$992,578
78$2,392,509$0$0$1,041,901
79$2,510,867$0$0$1,094,620
80$2,637,338$0$0$1,151,029
81$2,772,625$0$0$1,211,452
82$2,917,500$0$0$1,276,243
83$3,072,806$0$0$1,345,792
84$3,239,473$0$0$1,420,524
85$3,418,516$0$0$1,500,909
86$3,611,054$0$0$1,587,462
87$3,818,311$0$0$1,680,747
88$4,041,635$0$0$1,781,384
89$4,282,504$0$0$1,890,057
90$4,542,544$0$0$2,007,514
91$4,823,539$0$0$2,134,579
92$5,127,452$0$0$2,272,157
93$5,456,439$0$0$2,421,242
94$5,812,872$0$0$2,582,931
95$6,199,357$0$0$2,758,425
96$6,618,761$0$0$2,949,049
97$7,074,236$0$0$3,156,259
98$7,569,252$0$0$3,381,655
99$8,107,622$0$0$3,627,001
100$8,693,546$0$0$3,894,236