Can I retire at age 40 with 496,000?

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 $496,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.8%
1 years$40,959$40,594$40,238$39,891$39,552$38,769
2 years$20,277$19,899$19,533$19,178$18,834$18,049
3 years$13,384$13,004$12,639$12,288$11,949$11,186
4 years$9,938$9,560$9,198$8,853$8,522$7,787
5 years$7,871$7,495$7,138$6,800$6,478$5,773
6 years$6,493$6,120$5,769$5,438$5,126$4,451
7 years$5,510$5,140$4,794$4,471$4,169$3,525
8 years$4,772$4,406$4,066$3,750$3,459$2,845
9 years$4,199$3,836$3,502$3,194$2,913$2,329
10 years$3,741$3,381$3,053$2,754$2,482$1,928
11 years$3,366$3,010$2,688$2,397$2,134$1,610
12 years$3,054$2,702$2,385$2,102$1,850$1,353
13 years$2,790$2,441$2,131$1,856$1,613$1,144
14 years$2,564$2,219$1,915$1,647$1,414$972
15 years$2,368$2,027$1,729$1,469$1,245$828
16 years$2,197$1,860$1,567$1,315$1,100$708
17 years$2,047$1,713$1,426$1,182$976$607
18 years$1,913$1,583$1,302$1,065$867$522
19 years$1,793$1,467$1,192$962$773$449
20 years$1,686$1,363$1,094$872$691$388
21 years$1,589$1,270$1,006$791$618$335
22 years$1,500$1,185$927$719$554$289
23 years$1,420$1,109$856$655$497$250
24 years$1,346$1,039$792$597$447$217
25 years$1,279$975$733$546$402$188
26 years$1,216$916$680$499$362$163
27 years$1,159$862$632$457$327$142
28 years$1,105$812$587$418$295$123
29 years$1,056$766$546$384$266$107
30 years$1,010$724$509$352$240$93
31 years$966$684$475$323$217$81
32 years$926$647$443$297$197$70
33 years$888$613$413$273$178$61
34 years$853$581$386$251$161$53
35 years$819$551$361$231$146$46
36 years$788$523$338$213$132$40
37 years$758$497$316$196$120$35
38 years$730$472$296$181$109$30
39 years$703$449$277$167$99$26
40 years$678$427$260$154$89$23
41 years$654$407$244$142$81$20
42 years$631$387$229$131$74$17
43 years$610$369$215$121$67$15
44 years$589$352$201$112$61$13
45 years$570$335$189$103$55$12
46 years$551$320$178$95$50$10
47 years$533$305$167$88$45$9
48 years$516$291$157$81$41$8
49 years$500$278$147$75$37$7
50 years$484$266$139$70$34$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $496,000, adding $6,523 every year, while hoping to spend $31,481 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: 75/18/7 Blend
39$496,000$496,000$496,000$496,000
40$553,320$527,032$519,344$593,816
41$576,264$519,362$503,247$613,692
42$600,492$510,260$485,555$630,810
43$626,103$499,623$466,182$648,663
44$653,204$487,343$445,038$667,312
45$681,911$473,303$422,027$686,824
46$712,352$457,381$397,051$707,275
47$744,666$439,447$370,006$728,748
48$779,005$419,363$340,784$751,334
49$815,535$396,983$309,272$775,136
50$854,439$372,155$275,352$800,267
51$895,917$344,716$238,902$826,852
52$940,187$314,493$199,791$855,031
53$987,488$281,305$157,886$884,957
54$1,038,083$244,960$113,046$916,802
55$1,092,259$205,256$65,126$950,753
56$1,150,333$161,977$13,971$987,021
57$1,212,651$114,897$0$1,025,838
58$1,279,591$63,777$0$1,070,494
59$1,351,572$8,365$0$1,119,550
60$1,429,051$0$0$1,172,291
61$1,512,531$0$0$1,239,301
62$1,602,564$0$0$1,313,373
63$1,699,757$0$0$1,393,351
64$1,804,775$0$0$1,479,787
65$1,918,353$0$0$1,573,285
66$2,041,294$0$0$1,674,511
67$2,174,484$0$0$1,784,195
68$2,318,897$0$0$1,903,142
69$2,475,602$0$0$2,032,236
70$2,645,776$0$0$2,172,448
71$2,830,715$0$0$2,324,850
72$3,031,842$0$0$2,490,618
73$3,250,724$0$0$2,671,045
74$3,489,086$0$0$2,867,557
75$3,748,825$0$0$3,081,722
76$4,032,028$0$0$3,315,264
77$4,340,994$0$0$3,570,082
78$4,678,252$0$0$3,848,267
79$5,046,586$0$0$4,152,119
80$5,449,062$0$0$4,484,170
81$5,889,054$0$0$4,847,209
82$6,370,276$0$0$5,244,307
83$6,896,821$0$0$5,678,843
84$7,473,191$0$0$6,154,540
85$8,104,347$0$0$6,675,496
86$8,795,751$0$0$7,246,225
87$9,553,419$0$0$7,871,698
88$10,383,974$0$0$8,557,389
89$11,294,714$0$0$9,309,329
90$12,293,673$0$0$10,134,158
91$13,389,703$0$0$11,039,190
92$14,592,554$0$0$12,032,483
93$15,912,965$0$0$13,122,912
94$17,362,764$0$0$14,320,253
95$18,954,983$0$0$15,635,275
96$20,703,977$0$0$17,079,841
97$22,625,560$0$0$18,667,021
98$24,737,151$0$0$20,411,212
99$27,057,944$0$0$22,328,275
100$29,609,083$0$0$24,435,685