Can I retire at age 40 with 508,000?

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 $508,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$41,950$41,576$41,212$40,856$40,509$40,253
2 years$20,767$20,381$20,006$19,642$19,290$19,032
3 years$13,707$13,319$12,945$12,585$12,238$11,986
4 years$10,178$9,791$9,421$9,067$8,728$8,484
5 years$8,061$7,676$7,311$6,964$6,635$6,400
6 years$6,650$6,268$5,908$5,569$5,250$5,023
7 years$5,643$5,264$4,910$4,579$4,270$4,052
8 years$4,888$4,512$4,164$3,841$3,542$3,333
9 years$4,301$3,929$3,586$3,272$2,983$2,783
10 years$3,831$3,463$3,127$2,820$2,542$2,350
11 years$3,447$3,083$2,753$2,454$2,186$2,003
12 years$3,128$2,767$2,443$2,153$1,894$1,719
13 years$2,858$2,501$2,183$1,901$1,652$1,485
14 years$2,626$2,273$1,961$1,687$1,448$1,289
15 years$2,426$2,076$1,771$1,505$1,275$1,124
16 years$2,251$1,905$1,605$1,347$1,127$983
17 years$2,096$1,754$1,461$1,211$999$863
18 years$1,959$1,621$1,333$1,091$888$760
19 years$1,837$1,503$1,221$986$792$670
20 years$1,727$1,396$1,120$893$707$592
21 years$1,627$1,301$1,030$810$633$524
22 years$1,537$1,214$950$737$567$464
23 years$1,454$1,135$877$671$509$412
24 years$1,379$1,064$811$612$458$366
25 years$1,310$998$751$559$412$326
26 years$1,246$938$697$511$371$290
27 years$1,187$883$647$468$335$259
28 years$1,132$832$601$429$302$231
29 years$1,081$785$560$393$273$206
30 years$1,034$741$521$361$246$184
31 years$990$701$486$331$223$164
32 years$949$663$453$304$201$147
33 years$910$628$423$280$182$131
34 years$873$595$396$258$165$117
35 years$839$564$370$237$149$105
36 years$807$536$346$218$135$94
37 years$776$509$324$201$123$84
38 years$748$484$303$185$111$75
39 years$720$460$284$171$101$67
40 years$695$438$266$158$92$60
41 years$670$416$250$146$83$54
42 years$647$397$234$134$75$48
43 years$625$378$220$124$68$43
44 years$604$360$206$114$62$39
45 years$584$344$194$106$56$35
46 years$564$328$182$98$51$31
47 years$546$313$171$90$46$28
48 years$529$299$161$83$42$25
49 years$512$285$151$77$38$22
50 years$496$272$142$71$35$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $508,000, adding $2,073 every year, while hoping to spend $22,219 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: 38/42/20 Blend
39$508,000$508,000$508,000$508,000
40$561,954$535,030$527,156$579,870
41$595,633$537,606$521,175$595,574
42$632,002$539,563$514,249$610,283
43$671,312$540,848$506,323$625,724
44$713,840$541,404$497,338$641,973
45$759,889$541,169$487,236$659,118
46$809,791$540,080$475,952$677,259
47$863,914$538,068$463,420$696,504
48$922,660$535,060$449,572$716,976
49$986,473$530,980$434,335$738,812
50$1,055,840$525,745$417,632$762,165
51$1,131,299$519,270$399,386$787,205
52$1,213,439$511,462$379,513$814,121
53$1,302,910$502,223$357,926$843,125
54$1,400,426$491,452$334,537$874,452
55$1,506,775$479,038$309,249$908,363
56$1,622,822$464,866$281,964$945,152
57$1,749,519$448,815$252,579$985,140
58$1,887,916$430,753$220,987$1,028,688
59$2,039,169$410,545$187,075$1,076,197
60$2,204,547$388,045$150,726$1,128,111
61$2,385,452$363,100$111,816$1,184,922
62$2,583,425$335,548$70,218$1,247,180
63$2,800,162$305,218$25,799$1,315,490
64$3,037,533$271,929$0$1,390,529
65$3,297,597$235,488$0$1,477,653
66$3,582,619$195,694$0$1,579,256
67$3,895,096$152,334$0$1,690,778
68$4,237,779$105,180$0$1,813,270
69$4,613,694$53,996$0$1,947,896
70$5,026,178$0$0$2,095,940
71$5,478,905$0$0$2,259,505
72$5,975,922$0$0$2,466,538
73$6,521,687$0$0$2,693,951
74$7,121,111$0$0$2,943,798
75$7,779,604$0$0$3,218,344
76$8,503,125$0$0$3,520,083
77$9,298,241$0$0$3,851,764
78$10,172,184$0$0$4,216,415
79$11,132,924$0$0$4,617,370
80$12,189,238$0$0$5,058,306
81$13,350,801$0$0$5,543,271
82$14,628,269$0$0$6,076,727
83$16,033,382$0$0$6,663,588
84$17,579,077$0$0$7,309,271
85$19,279,607$0$0$8,019,743
86$21,150,676$0$0$8,801,578
87$23,209,588$0$0$9,662,020
88$25,475,407$0$0$10,609,052
89$27,969,141$0$0$11,651,468
90$30,713,936$0$0$12,798,960
91$33,735,296$0$0$14,062,207
92$37,061,324$0$0$15,452,973
93$40,722,985$0$0$16,984,225
94$44,754,399$0$0$18,670,249
95$49,193,165$0$0$20,526,787
96$54,080,710$0$0$22,571,185
97$59,462,684$0$0$24,822,558
98$65,389,391$0$0$27,301,967
99$71,916,259$0$0$30,032,623
100$79,104,369$0$0$33,040,100