Can I retire at age 40 with 509,000?

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 $509,000?

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$42,033$41,658$41,293$40,937$40,588$40,349
2 years$20,808$20,421$20,045$19,681$19,328$19,087
3 years$13,734$13,345$12,971$12,610$12,262$12,027
4 years$10,198$9,810$9,439$9,085$8,746$8,517
5 years$8,077$7,691$7,325$6,978$6,648$6,428
6 years$6,663$6,280$5,920$5,580$5,261$5,048
7 years$5,654$5,274$4,919$4,588$4,278$4,074
8 years$4,897$4,521$4,172$3,849$3,549$3,353
9 years$4,309$3,936$3,593$3,278$2,989$2,801
10 years$3,839$3,470$3,133$2,826$2,547$2,367
11 years$3,454$3,089$2,758$2,459$2,190$2,018
12 years$3,134$2,772$2,448$2,157$1,898$1,734
13 years$2,863$2,505$2,187$1,904$1,655$1,499
14 years$2,631$2,277$1,965$1,691$1,451$1,302
15 years$2,431$2,080$1,774$1,508$1,277$1,136
16 years$2,255$1,909$1,608$1,350$1,129$994
17 years$2,100$1,758$1,464$1,213$1,001$873
18 years$1,963$1,624$1,336$1,093$890$769
19 years$1,840$1,505$1,223$988$793$679
20 years$1,730$1,399$1,123$895$709$600
21 years$1,630$1,303$1,033$812$634$532
22 years$1,540$1,216$952$738$568$472
23 years$1,457$1,138$879$672$510$419
24 years$1,382$1,066$813$613$459$373
25 years$1,312$1,000$753$560$413$332
26 years$1,248$940$698$512$372$296
27 years$1,189$885$648$469$335$264
28 years$1,134$834$603$429$302$235
29 years$1,084$787$561$394$273$210
30 years$1,036$743$522$361$247$188
31 years$992$702$487$332$223$168
32 years$950$664$454$305$202$150
33 years$912$629$424$280$183$134
34 years$875$596$396$258$165$120
35 years$841$566$371$238$150$108
36 years$808$537$347$219$136$96
37 years$778$510$324$202$123$86
38 years$749$485$304$186$111$77
39 years$722$461$285$171$101$69
40 years$696$438$267$158$92$62
41 years$671$417$250$146$83$56
42 years$648$397$235$135$75$50
43 years$626$379$220$124$69$45
44 years$605$361$207$115$62$40
45 years$585$344$194$106$56$36
46 years$565$328$182$98$51$32
47 years$547$313$171$90$47$29
48 years$530$299$161$84$42$26
49 years$513$286$151$77$38$23
50 years$497$273$142$71$35$21

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $509,000, adding $5,343 every year, while hoping to spend $39,724 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: 72/20/8 Blend
39$509,000$509,000$509,000$509,000
40$566,429$539,452$531,563$606,081
41$581,939$523,619$507,104$617,148
42$597,699$505,679$480,495$623,803
43$613,694$485,487$451,621$629,988
44$629,904$462,889$420,363$635,646
45$646,305$437,722$386,596$640,713
46$662,873$409,814$350,191$645,123
47$679,575$378,985$311,012$648,802
48$696,378$345,041$268,917$651,670
49$713,240$307,779$223,758$653,640
50$730,116$266,986$175,379$654,618
51$746,953$222,434$123,619$654,502
52$763,692$173,883$68,311$653,180
53$780,266$121,080$9,276$650,532
54$796,598$63,759$0$646,427
55$812,604$1,636$0$645,307
56$828,188$0$0$643,575
57$843,241$0$0$654,721
58$857,642$0$0$665,696
59$871,257$0$0$676,032
60$883,933$0$0$685,610
61$895,503$0$0$694,294
62$905,777$0$0$701,934
63$914,545$0$0$708,364
64$921,574$0$0$713,397
65$926,603$0$0$716,825
66$929,341$0$0$718,420
67$929,469$0$0$717,924
68$926,627$0$0$715,053
69$920,420$0$0$709,493
70$910,407$0$0$700,892
71$896,099$0$0$688,864
72$876,957$0$0$672,979
73$852,380$0$0$652,759
74$821,704$0$0$627,677
75$784,194$0$0$597,150
76$739,037$0$0$560,531
77$685,331$0$0$517,105
78$622,081$0$0$466,080
79$548,185$0$0$406,581
80$462,426$0$0$337,643
81$363,456$0$0$258,194
82$249,788$0$0$167,055
83$119,777$0$0$62,918
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0