Can I retire at age 40 with 489,000?

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 $489,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.9%
1 years$40,381$40,021$39,671$39,328$38,994$37,745
2 years$19,991$19,618$19,258$18,908$18,568$17,322
3 years$13,195$12,821$12,461$12,114$11,781$10,576
4 years$9,797$9,425$9,068$8,728$8,402$7,248
5 years$7,760$7,389$7,037$6,704$6,387$5,286
6 years$6,401$6,034$5,687$5,361$5,054$4,008
7 years$5,432$5,067$4,726$4,408$4,110$3,118
8 years$4,705$4,343$4,008$3,697$3,410$2,472
9 years$4,140$3,782$3,452$3,149$2,872$1,986
10 years$3,688$3,333$3,010$2,715$2,447$1,613
11 years$3,318$2,968$2,650$2,363$2,104$1,320
12 years$3,011$2,664$2,352$2,072$1,823$1,087
13 years$2,751$2,407$2,101$1,830$1,590$900
14 years$2,528$2,188$1,888$1,624$1,394$748
15 years$2,335$1,999$1,704$1,448$1,227$624
16 years$2,166$1,834$1,545$1,297$1,085$522
17 years$2,018$1,689$1,406$1,165$962$438
18 years$1,886$1,561$1,284$1,050$855$368
19 years$1,768$1,446$1,175$949$762$309
20 years$1,662$1,344$1,078$859$681$261
21 years$1,566$1,252$992$780$609$220
22 years$1,479$1,169$914$709$546$185
23 years$1,400$1,093$844$646$490$157
24 years$1,327$1,024$781$589$441$132
25 years$1,261$961$723$538$396$112
26 years$1,199$903$671$492$357$95
27 years$1,143$850$623$450$322$80
28 years$1,090$801$579$413$291$68
29 years$1,041$756$539$378$262$57
30 years$995$714$502$347$237$49
31 years$953$675$468$319$214$41
32 years$913$638$436$293$194$35
33 years$876$604$408$269$175$30
34 years$841$573$381$248$159$25
35 years$808$543$356$228$144$21
36 years$777$516$333$210$130$18
37 years$747$490$312$194$118$15
38 years$720$466$292$179$107$13
39 years$693$443$273$165$97$11
40 years$669$421$256$152$88$9
41 years$645$401$240$140$80$8
42 years$623$382$225$129$73$7
43 years$601$364$212$119$66$6
44 years$581$347$199$110$60$5
45 years$562$331$186$102$54$4
46 years$543$315$175$94$49$3
47 years$526$301$165$87$45$3
48 years$509$287$155$80$41$2
49 years$493$274$145$74$37$2
50 years$477$262$137$69$34$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $489,000, adding $5,549 every year, while hoping to spend $29,723 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: 72/5/23 Blend
39$489,000$489,000$489,000$489,000
40$544,602$518,685$511,105$580,328
41$568,526$512,475$496,602$598,659
42$593,895$504,965$480,617$614,677
43$620,823$496,060$463,069$631,491
44$649,438$485,658$443,873$649,175
45$679,879$473,653$422,941$667,814
46$712,297$459,932$400,180$687,500
47$746,858$444,376$375,492$708,335
48$783,744$426,857$348,778$730,434
49$823,155$407,243$319,932$753,922
50$865,310$385,390$288,842$778,939
51$910,447$361,150$255,394$805,641
52$958,830$334,363$219,467$834,198
53$1,010,746$304,863$180,935$864,801
54$1,066,513$272,472$139,666$897,661
55$1,126,477$237,003$95,525$933,011
56$1,191,019$198,258$48,367$971,108
57$1,260,559$156,028$0$1,012,239
58$1,335,555$110,092$0$1,057,200
59$1,416,514$60,219$0$1,118,560
60$1,503,989$6,160$0$1,184,862
61$1,598,590$0$0$1,256,578
62$1,700,989$0$0$1,337,103
63$1,811,921$0$0$1,424,727
64$1,932,198$0$0$1,519,752
65$2,062,710$0$0$1,622,886
66$2,204,438$0$0$1,734,905
67$2,358,458$0$0$1,856,664
68$2,525,957$0$0$1,989,103
69$2,708,240$0$0$2,133,258
70$2,906,741$0$0$2,290,267
71$3,123,041$0$0$2,461,382
72$3,358,878$0$0$2,647,983
73$3,616,164$0$0$2,851,586
74$3,897,006$0$0$3,073,862
75$4,203,722$0$0$3,316,650
76$4,538,863$0$0$3,581,973
77$4,905,239$0$0$3,872,061
78$5,305,943$0$0$4,189,367
79$5,744,380$0$0$4,536,593
80$6,224,300$0$0$4,916,712
81$6,749,834$0$0$5,333,002
82$7,325,527$0$0$5,789,068
83$7,956,388$0$0$6,288,885
84$8,647,932$0$0$6,836,827
85$9,406,234$0$0$7,437,712
86$10,237,982$0$0$8,096,850
87$11,150,548$0$0$8,820,085
88$12,152,045$0$0$9,613,856
89$13,251,417$0$0$10,485,257
90$14,458,509$0$0$11,442,101
91$15,784,172$0$0$12,492,994
92$17,240,356$0$0$13,647,418
93$18,840,225$0$0$14,915,818
94$20,598,284$0$0$16,309,700
95$22,530,510$0$0$17,841,741
96$24,654,506$0$0$19,525,906
97$26,989,665$0$0$21,377,581
98$29,557,353$0$0$23,413,719
99$32,381,109$0$0$25,652,995
100$35,486,869$0$0$28,115,985