Can I retire at age 40 with 506,000?

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 $506,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.4%
1 years$41,785$41,413$41,050$40,695$40,349$40,112
2 years$20,686$20,300$19,927$19,565$19,214$18,974
3 years$13,653$13,267$12,894$12,535$12,190$11,956
4 years$10,138$9,752$9,384$9,031$8,694$8,467
5 years$8,029$7,646$7,282$6,937$6,609$6,390
6 years$6,624$6,243$5,885$5,547$5,230$5,018
7 years$5,621$5,243$4,890$4,561$4,253$4,050
8 years$4,868$4,494$4,147$3,826$3,528$3,333
9 years$4,284$3,913$3,572$3,259$2,971$2,785
10 years$3,816$3,449$3,114$2,809$2,532$2,353
11 years$3,434$3,071$2,742$2,445$2,177$2,006
12 years$3,115$2,756$2,433$2,144$1,887$1,724
13 years$2,846$2,491$2,174$1,893$1,645$1,490
14 years$2,616$2,264$1,953$1,681$1,442$1,294
15 years$2,416$2,068$1,764$1,499$1,270$1,129
16 years$2,242$1,898$1,599$1,342$1,122$989
17 years$2,088$1,748$1,455$1,206$995$868
18 years$1,951$1,615$1,328$1,087$885$765
19 years$1,829$1,497$1,216$982$789$675
20 years$1,720$1,391$1,116$889$704$597
21 years$1,621$1,295$1,026$807$630$529
22 years$1,531$1,209$946$734$565$469
23 years$1,449$1,131$873$668$507$417
24 years$1,374$1,060$808$610$456$370
25 years$1,305$994$748$557$410$330
26 years$1,241$935$694$509$370$294
27 years$1,182$880$644$466$333$262
28 years$1,128$829$599$427$301$234
29 years$1,077$782$557$391$271$209
30 years$1,030$738$519$359$245$187
31 years$986$698$484$330$222$167
32 years$945$660$452$303$201$149
33 years$906$625$422$279$182$133
34 years$870$593$394$257$164$119
35 years$836$562$368$236$149$107
36 years$804$534$345$218$135$96
37 years$773$507$323$200$122$86
38 years$745$482$302$185$111$77
39 years$717$458$283$170$101$69
40 years$692$436$265$157$91$62
41 years$667$415$249$145$83$55
42 years$644$395$233$134$75$50
43 years$622$376$219$123$68$44
44 years$601$359$205$114$62$40
45 years$581$342$193$105$56$36
46 years$562$326$181$97$51$32
47 years$544$312$170$90$46$29
48 years$527$297$160$83$42$26
49 years$510$284$150$77$38$23
50 years$494$271$141$71$35$21

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $506,000, adding $5,534 every year, while hoping to spend $25,643 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: 71/15/14 Blend
39$506,000$506,000$506,000$506,000
40$563,320$536,502$528,659$601,181
41$593,495$535,507$519,085$626,035
42$625,888$533,603$508,331$649,597
43$660,699$530,720$496,331$674,719
44$698,146$526,781$483,013$701,548
45$738,469$521,706$468,307$730,251
46$781,932$515,409$452,134$761,009
47$828,825$507,800$434,417$794,023
48$879,466$498,782$415,070$829,515
49$934,204$488,255$394,008$867,729
50$993,424$476,111$371,138$908,938
51$1,057,549$462,236$346,367$953,438
52$1,127,042$446,509$319,593$1,001,562
53$1,202,415$428,802$290,714$1,053,672
54$1,284,228$408,981$259,620$1,110,172
55$1,373,101$386,902$226,199$1,171,506
56$1,469,711$362,414$190,331$1,238,166
57$1,574,808$335,358$151,893$1,310,692
58$1,689,212$305,565$110,755$1,389,684
59$1,813,830$272,856$66,784$1,475,801
60$1,949,657$237,042$19,837$1,569,774
61$2,097,789$197,924$0$1,672,406
62$2,259,432$155,291$0$1,789,108
63$2,435,914$108,921$0$1,919,796
64$2,628,698$58,578$0$2,062,609
65$2,839,391$4,014$0$2,218,769
66$3,069,766$0$0$2,389,618
67$3,321,772$0$0$2,585,725
68$3,597,559$0$0$2,801,087
69$3,899,490$0$0$3,036,892
70$4,230,170$0$0$3,295,177
71$4,592,467$0$0$3,578,186
72$4,989,539$0$0$3,888,388
73$5,424,864$0$0$4,228,507
74$5,902,274$0$0$4,601,537
75$6,425,988$0$0$5,010,781
76$7,000,654$0$0$5,459,874
77$7,631,391$0$0$5,952,822
78$8,323,838$0$0$6,494,036
79$9,084,208$0$0$7,088,375
80$9,919,342$0$0$7,741,193
81$10,836,779$0$0$8,458,387
82$11,844,823$0$0$9,246,454
83$12,952,622$0$0$10,112,552
84$14,170,255$0$0$11,064,564
85$15,508,826$0$0$12,111,179
86$16,980,566$0$0$13,261,966
87$18,598,954$0$0$14,527,470
88$20,378,839$0$0$15,919,309
89$22,336,579$0$0$17,450,281
90$24,490,201$0$0$19,134,489
91$26,859,563$0$0$20,987,470
92$29,466,549$0$0$23,026,346
93$32,335,267$0$0$25,269,979
94$35,492,283$0$0$27,739,154
95$38,966,868$0$0$30,456,771
96$42,791,273$0$0$33,448,064
97$47,001,035$0$0$36,740,836
98$51,635,312$0$0$40,365,726
99$56,737,251$0$0$44,356,489
100$62,354,395$0$0$48,750,325